Loss of Use Insurance

[Hoofbeat_Heartbeat]

Yay or Neigh (hah)?

Hi All,

I feel very grateful to be close to purchasing my dream horse, who is costing more than a few pennies, to say the least. I recognize that this is a tumultuous time for all, and I just want to put it out there that getting a horse like this has never been a situation I would ever have dreamed I would be in, but I have had both luck and heartache to get in this position, so I’m trying to roll with it!

I am curious as to people’s experience regarding loss of use insurance: Is it worth it? How expensive is it? Has anyone ever needed to use it?

For reference, horse is younger than 8 years old, has placed top 10 in two International Derbies, and a very nice quality horse.

Thanks!

[IPEsq]

It’s usually not cheap. Talk to your insurance agent about it. It’s not a bad idea for a higher dollar value horse, but there are some limitations to the coverage that coupled with the premium may or may not make sense for you and your situation. I haven’t had a horse in that price bracket but did talk to my agent about it when I was getting back into horse ownership after years away and re-navigating the insurance stuff.

[Hoofbeat_Heartbeat]

@IPEsq

It’s usually not cheap. Talk to your insurance agent about it. It’s not a bad idea for a higher dollar value horse, but there are some limitations to the coverage that coupled with the premium may or may not make sense for you and your situation. I haven’t had a horse in that price bracket but did talk to my agent about it when I was getting back into horse ownership after years away and re-navigating the insurance stuff.

Great, thanks so much!

[Madison]

When you talk to your agent, you want to be very clear as to what happens to the horse if you make a claim. Some policies require you to surrender the horse to the insurance company before they will pay out (to avoid people making fraudulent claims, getting a payout, and putting the horse back to work or on the market). And some policies give you the choice of surrendering or taking a lower payout to be able to keep the horse. So, the terms of the actual policy you are considering are very important, in addition to the fact that it is expensive coverage.

[ryansgirl]

Sure…if you are okay with the insurance company taking ownership of the horse after you file a claim and dumping it at an auction. And not a “good” auction either.

Or the horse being euthanized even though it would’ve been perfectly fine as a pasture pet. Horse was diagnosed with a neck issue and unsafe to ride. Owner had no problem keeping the horse as a permanent pasture pet. Insurance company said not if you want to be reimbursed for all the diagnostics and hospital stays. Bill was in the five figures. Owner was maxed out and couldn’t afford to pay it so she could keep the horse. I was “lucky” enough to feed the horse’s last meal and it was horrible - he was perfectly fine - just couldn’t be ridden but it didn’t matter - he was euthanized that morning. Insurance paid the claim. Owner was devastated. And the horse was gone.

Be VERY, VERY careful and read the policy thoroughly and understand it. No way I’d get a loss-of-use policy.

[Hoofbeat_Heartbeat]

@ryansgirl

Sure…if you are okay with the insurance company taking ownership of the horse after you file a claim and dumping it at an auction. And not a “good” auction either.

Or the horse being euthanized even though it would’ve been perfectly fine as a pasture pet. Horse was diagnosed with a neck issue and unsafe to ride. Owner had no problem keeping the horse as a permanent pasture pet. Insurance company said not if you want to be reimbursed for all the diagnostics and hospital stays. Bill was in the five figures. Owner was maxed out and couldn’t afford to pay it so she could keep the horse. I was “lucky” enough to feed the horse’s last meal and it was horrible - he was perfectly fine - just couldn’t be ridden but it didn’t matter - he was euthanized that morning. Insurance paid the claim. Owner was devastated. And the horse was gone.

Be VERY, VERY careful and read the policy thoroughly and understand it. No way I’d get a loss-of-use policy.

Horrible! Thank you for sharing. I’m definitely thinking that I won’t get it, just trying to understand all options.

[H_Jrider22]

@Hoofbeat_Heartbeat

Yay or Neigh (hah)?

Hi All,

I feel very grateful to be close to purchasing my dream horse, who is costing more than a few pennies, to say the least. I recognize that this is a tumultuous time for all, and I just want to put it out there that getting a horse like this has never been a situation I would ever have dreamed I would be in, but I have had both luck and heartache to get in this position, so I’m trying to roll with it!

I am curious as to people’s experience regarding loss of use insurance: Is it worth it? How expensive is it? Has anyone ever needed to use it?

For reference, horse is younger than 8 years old, has placed top 10 in two International Derbies, and a very nice quality horse.

Thanks!

I would definitely advise AGAINST loss of use. Just like the other person commented above, they WILL take your horse and you will have no idea where or what happens with it. Like they said, a not “nice” auction.

[NaturallyHappy]

@ryansgirl

Sure…if you are okay with the insurance company taking ownership of the horse after you file a claim and dumping it at an auction. And not a “good” auction either.

Or the horse being euthanized even though it would’ve been perfectly fine as a pasture pet. Horse was diagnosed with a neck issue and unsafe to ride. Owner had no problem keeping the horse as a permanent pasture pet. Insurance company said not if you want to be reimbursed for all the diagnostics and hospital stays. Bill was in the five figures. Owner was maxed out and couldn’t afford to pay it so she could keep the horse. I was “lucky” enough to feed the horse’s last meal and it was horrible - he was perfectly fine - just couldn’t be ridden but it didn’t matter - he was euthanized that morning. Insurance paid the claim. Owner was devastated. And the horse was gone.

Be VERY, VERY careful and read the policy thoroughly and understand it. No way I’d get a loss-of-use policy.

I agree with this wholeheartedly. I’ve seen insurance companies pass those horses on to someone for rehabilitation and sale, but someone (as in veterinarian) stepped in quietly to save that horse.

[Hoofbeat_Heartbeat]

Thank you SO much everyone for the info. After discussing with my trainer, I will not be obtaining it. It does not seem worth it, at all!

[BAC]

Back in the early-mid 1990s I worked for a family whose daughter had a 6 figure big eq horse and rode with the top eq trainers in the country. When the horse sustained a career ending injury, the insurance company refused to pay out on the policy because the horse was sound for flat work. My boss ended up suing the insurance company, but when that didn’t work they ended up euthanizing the horse to collect the mortality money instead. I wouldn’t bother with loss of use, the insurance companies are very reluctant to pay and your horse will not end up in a good situation.

[gertie06]

@BAC

Back in the early-mid 1990s I worked for a family whose daughter had a 6 figure big eq horse and rode with the top eq trainers in the country. When the horse sustained a career ending injury, the insurance company refused to pay out on the policy because the horse was sound for flat work. My boss ended up suing the insurance company, but when that didn’t work they ended up euthanizing the horse to collect the mortality money instead. I wouldn’t bother with loss of use, the insurance companies are very reluctant to pay and your horse will not end up in a good situation.

This has been my observation as well. The insurance companies will look for loopholes to prove that you haven’t really lost use of the horse entirely.