Full Mortality insurance is the most comprehensive coverage written. This type of policy provides coverage against death caused directly or indirectly by an accident, illness, or disease. The policy requires the horse owner to abide by certain terms and conditions listed in the policy.
Policies are written on an annual basis and the rate for this coverage is determined by the breed, age, use, sex and value of the individual horse. Horses must be at least 24 hours old to qualify for this coverage. The insurable value is based on the fair market value at the time of coverage. Substantiation may be given in the form of the purchase price, money earned, performance/race records, stud fees or produce record. Value may be increased during the policy year with substantiation of value. A horse must be deemed sound and healthy for its intended use at the time of the policy’s inception. Depending on age and value, a Declaration of Health or Veterinary Health Certificate will need to be completed to provide sufficient documentation as to the current health of the horse.
For a reduced premium, a Deductible option may be preferable for owners of large schedules of horses (usually 20 or more). One limitation to this type of policy is that one horse may not represent more than 20% of the total insured value of the schedule. The policy receives an overall rate based upon the average rate of all horses on the schedule. There is an annual aggregate deductible that is provided at the start of the policy that must be exhausted prior to payment of a claim. An annual aggregate deductible is calculated by the total sum insured at the time of loss. Various options may be provided to clients based upon their specific insurance needs.