For those who breed horses, a natural disaster can be devastating. It can lead to a loss in income from boarding and lessons. Having the right horse ranch insurance in place can help. It can also provide financial protection against property loss, business interruption, and loss of revenue. A typical equine policy includes mortality coverage, significant medical cover, and loss of use.
Coverage for Damage to Livestock
The time and money invested in raising and training a horse is considerable, so losing any animal can be financially devastating. While equine insurance helps to cover, the cost of a lost horse and liability insurance protects owners from costly lawsuits, horse ranch insurance offers additional protection for livestock. Full mortality coverage protects against the loss of horses due to death and theft, including humane euthanization. It also covers the actual cash value of any new livestock you acquire during the policy period (typically 25 percent) and includes veterinary costs. If you commercially use your horses, such as riding lessons and clinics or operating a stable, personal accident coverage is an option to consider. It pays the cost of medical treatment for anyone that rides or handles your horses with your permission (provided they are not paid, as professionals should carry their personal accident cover). It can be purchased on an annual basis.
Coverage for Damage to the Barn
Owning a horse and keeping it at home may be covered under your homeowner’s policy. But if you train your horses, compete with them, or board horses that aren’t yours, then a standard homeowner’s policy will need more coverage. In these cases, a farm and ranch owner’s policy is needed. A typical policy will include a livestock portion for the barn and arena and a care, custody, and control (CCC) option. The latter covers the cost of boarding, training, or exercising a horse for another person and incidental hauling. Business interruption insurance can also be included in the policy if a natural disaster causes your facility to lose income. This is especially important if your horse ranch depends on revenue generated by boarding or lessons. A loss of income could be devastating to your operation. This type of policy can help you survive a natural disaster with ease. A reputable farm and ranch policy provider can assist you in choosing suitable options for your unique risk.
Coverage for Damage to Equipment
As the owner of a horse ranch, you likely have expensive equipment at risk in the event of a natural disaster. This includes barns, fences, corrals, and pens and tack. Specialized insurance coverage is available for this type of equipment. It may include coverage for the cost to repair or replace tack and equipment minus depreciation. It also covers loss from fire, lightning, and the collision/overturn of a conveyance that transports a horse (for example, a trailer). In addition to coverage for property damage, this type of specialized insurance usually includes general liability protection for your ranch. This coverage protects you if a customer, visitor, or trespasser is injured [Bodily Injury] or their property is damaged [Property Damage] while on the premises. It also often offers Care, Custody, and Control Liability coverage to protect non-owned horses that are boarded or in your custody.
Coverage for Loss of Income
A million-dollar racehorse, Olympic-caliber sport horse, or elite breeding stallion are all expensive assets that should be insured. But even a seasoned hunting or cutting horse, a promising young broodmare, and a boarding facility with a few dozen horses represent significant financial investment and would only be able to replace with insurance. Most horse farm insurance policies include a complete mortality component that pays a stated amount for the loss of the animal due to illness or injury. Some include a percentage return on a claimed amount (subject to a salvage value assessment that varies by insurer). Many equine insurance providers offer primary medical/surgical coverage, generally at a flat rate per year and determined by the policy’s coverage limit and deductible. It’s an important addition that helps offset unexpected veterinary expenses, such as that Sunday night colic surgery that leaves you with an enormous bill. Other veterinary coverages may be available to help cover preventive care, such as annual vaccinations, dental floating, and parasite control.
