The “Wait and See” Gamble: Why Timing Matters When Insuring Your Horse

Insights Into Equine Insurance brought to you by Marcella Dhority, the Equine Insurance Pro

Horse ownership comes with a long list of decisions, and one of the most common mistakes we see owners make is waiting to insure their horse. Reasons can include the horse hasn’t had a pre-purchase exam yet, he’s not in full training or he has not gone to a horse show. It feels reasonable at the time, but insurance works best when it is in place before there is a problem to insure.

Why Owners Wait

Most of the time, this isn’t carelessness. Owners are simply looking for the right moment, and those milestones can seem like logical times to revisit insurance coverage. The problem is that a horse’s medical history can become part of the underwriting process once a condition or injury has been documented.

The American Association of Equine Practitioners addresses the importance of that history in “Ethics: Role of Ethical Equine Veterinarians in Equine Insurance,” by Nat T. Messer, DVM; Kenton D. Morgan, DVM; and Karen A. Nyrop, DVM, MS. The authors explain that known health history and pertinent examination findings are important to the insurance process and state that withholding that information may negate a policy if a claim is made. For an owner, that means the timing of an insurance decision can affect what coverage is available later.

You Can’t Insure Yesterday’s Problem: Things to Know When Insuring Your Horse

This is one of the most misunderstood parts of equine insurance. A policy is a contract between the owner and the insurance company, and its terms determine what is covered, what is excluded and what requirements apply. The AAEP’s client resource “Understanding Your Horse Insurance Responsibilities” emphasizes the importance of knowing those terms before purchasing a policy.

A medical issue does not have to be catastrophic to become relevant. Lameness, illness or another documented condition may affect future coverage depending on the insurer and the circumstances, and an exclusion may remain in place even after the horse has recovered. Some exclusions can be reviewed later, but that decision belongs to the insurance company and is not guaranteed.

The Veterinary Bills That Add Up

When people think about equine insurance, they often picture the major emergency: colic surgery, hospitalization or another crisis that produces a substantial veterinary bill. Those cases happen, but smaller problems can become expensive, too. In claims I have handled, I’ve seen a 14-year-old Thoroughbred gelding come in with what initially appeared to be a minor hock laceration, and eligible benefits ultimately totaled $7,909.76.

A 10-year-old Warmblood mare needed diagnostic work for a fetlock injury, with eligible expenses totaling $6,939. A 7-year-old KWPN gelding developed a tooth abscess that ultimately resulted in $4,471.61 in eligible expenses after imaging and follow-up care. None of these cases began as what an owner would expect to be a major veterinary event, but the costs grew as treatment progressed.

I’ve also handled larger claims, including one recent claim involving a 9-year-old Thoroughbred that reached $16,604.19 in eligible expenses. These individual claims are not averages and should not be taken as a prediction of what veterinary care will cost for any particular horse. They do show, however, how quickly an unexpected veterinary problem can move beyond the cost an owner initially anticipated.

What Are You Really Paying For?

The value of insurance isn’t just the amount a policy may pay. It is having a financial plan in place when an unexpected veterinary problem occurs, so the cost of eligible treatment is not the only factor an owner has to consider. When a horse needs diagnostics, hospitalization, surgery or other treatment, coverage may help reduce that financial burden.

Insurance does not pay every veterinary bill, and coverage varies by policy. Deductibles, limits, exclusions and claim requirements all matter, which is why knowing the details of a policy is important before an emergency occurs.

There Isn’t a Perfect Time to Insure

There is no single point in a horse’s life when insurance suddenly becomes necessary. The appropriate coverage depends on factors including the horse’s age, value, use and medical history, as well as the type of protection the owner wants. Insurance companies may also have different requirements for examinations and documentation.

The best time to understand those options is before a problem changes the equation. If you are buying a horse, bringing one home, changing its use or reconsidering your current coverage, talk with an equine insurance professional about what is available and what the policy requires. A few questions before coverage begins can give you a much clearer understanding of what that policy will mean when you need it.

If you have any questions about this topic or would simply like to talk through your individual situation, please feel free to reach out to me directly at marcella@centralvains.com. I’m always happy to discuss coverage or help clarify any aspects of horse insurance.

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Marcella Dhority is an Equine & Farm Specialist with Equine Insurance Professionals, LLC. A Birmingham, AL native, she began riding at age 8 and earned a degree in Agricultural Economics from Auburn University, where she competed on the equestrian team. A third-generation insurance agent, Marcella combines her passion for horses with insurance expertise to help clients protect their farms and equine investments. She now lives in Tennessee and competes in hunter and dressage events.