Make sure the company you insure with writes their mortality policies on an Agreed Value basis, rather than an Actual Cash Value basis. Policies that are written on an Actual Cash Value basis pay you only what the horse is worth at the time of its death. The problem with Actual Cash Value policies is that your horse's value may rise and fall during the policy term and, if your horse is experiencing a slump at the time of its death, the company is likely to pay you less than the amount you insured him for.

Our policies are automatically written on an Agreed Value basis. This means that as long as the horse was worth its insured value at any time during the policy period, that is the amount you will be paid in the event of an approved claim.

Consider insuring your horse with a company that includes Free Colic Surgery coverage automatically with their policy.

Also, if Free Colic Surgery is included with your Mortality policy and you add the Major Medical/Surgical endorsement, make sure that the company will allow you the maximum limits on both coverages. Some companies set a maximum limit that they will pay out in the event the horse colics that is less than the combined limits of both the Colic Surgery coverage and Major Medical/Surgical.

Our policy automatically includes Free Colic Surgery coverage, providing the horse does not have a history of serious colic problems (i.e., multiple medical colics, or colic surgery). The coverage limit is 60% of the insured value with a maximum of $3,000 and no deductible. If you insure your horse for Major Medical/Surgical as well, you will have access to the maximum limits on both coverages (i.e., if you insure your horse for $5,000, and he has a very expensive colic surgery, you will have $10,500 of coverage available - $7,500 from the Major Medical/Surgical and $3,000 on the Free Colic Surgery coverage.)

This is a very important coverage to consider because as we all know unexpected veterinary bills can be a financial burden, and no one wants to face the choice between his checkbook and his horse's well-being. And please keep in mind that under the terms of a mortality policy, the company does require that you give proper care and attention to your horses, which means that if your horse has a serious problem such as EPM, colic or a fracture, and the veterinarians believe there is a chance they can save him, you are expected to give that care. Humane destruction is covered under the policy, but economic destruction is not. If you choose to put your horse down for financial reasons, the policy will not cover for this.

Different limits are available for Major Medical/Surgical coverages. You will want to find the highest limit possible. Depending on the company, we can offer a $10,000 per year limit, a $7,500 per year limit and a $5,000 per year limit.

Something else that is important to consider is the limit for aftercare. Most companies impose a time limit for how long they will cover for a problem. This limit varies between companies, sometimes as little as four weeks. Our company will cover for the problem for the entire policy period in which it happened. This can be quite important if you are dealing with a serious problem like EPM, where the medication and care is both lengthy and costly.

One last point to remember is to find out what is actually covered or, more importantly, not covered. Some companies only cover if the problem is life threatening. Many problems that your horse develops, such as a lameness, may not be life threatening.

There are two types of Loss of Use coverage available. One type is usually known as Accident or External Injury Only Loss of Use. The other is normally known as Full Loss of Use. Some companies only offer the former.

Check into what the company considers a permanent Loss of Use. For example, if you have a Grand Prix jumper that can now still be ridden, but only lightly on the trail, some companies will not consider that a loss of use.

Also, make sure to find out what happens if a claim is paid. Some companies offer a lesser percentage of the insured value if you keep the horse versus if you give the horse to them. Others may require that the horse be put down.

The company that we work with offers both types of Loss of Use and do not return different percentages of the insured value at the time of the claim. They also have no requirement that the horse be put down.

When Looking For An Equine Agency, Consider These Points

Make sure the company is A rated or higher. This rating is determined by A.M. Best and indicates that financial stability of the company as well as its claims paying history. AEIG, our underwriter, utilizes companies that are A+ (Superior) rated or better.

Equestrian insurance is a very specialized area. You want to make sure you are working with a staff that knows the horse industry, and that stays actively involved. You also want to make sure that there is someone there to answer the phone when you call.