Horse Insurance Coverage Terms

29 terms defined in plain language

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Agreed value, mortality, major medical, loss of use, transit — every coverage type defined in plain language.

Agreed Value

The dollar amount established when the policy is written, representing the horse's insured value and the maximum payout in a mortality claim.

All-Risk

A mortality policy that covers death from any cause not specifically excluded. The broadest and most common form of equine mortality coverage.

Annual Limit

Maximum amount the insurer will pay during one policy period. Once exhausted, the owner is responsible for all remaining costs.

Covered Cause

An event or condition for which the policy provides coverage. All-risk policies cover any cause not specifically excluded.

Exclusion

A condition, cause, or circumstance the policy does not cover. The most common source of claims disputes.

Infertility Coverage

Pays when a stallion becomes permanently unable to breed. Separate from mortality. Requires documented semen evaluations.

Lay-Up

A reduced premium rate during periods when a horse is not in active use (resting, recovering). Not all carriers offer this.

Limited Perils

Restricted mortality covering only specified causes (fire, lightning, transport accident). Excludes illness and disease. Often the only option for older horses.

Live Foal Guarantee

Insurance protecting the stud fee if a breeding doesn't produce a live foal. "Live foal" typically means standing and nursing within 24 hours.

Loss of Use

Pays 50–60% of insured value when a horse becomes permanently unable to perform its insured use. Requires veterinary confirmation of permanence.

Major Medical

Comprehensive medical coverage reimbursing veterinary expenses for illness or injury including diagnostics, hospitalization, and medications.

Mortality Insurance

The foundational equine coverage. Pays the agreed value upon death from covered causes. Equivalent to "life insurance" for horses.

Named Perils

Policy covering only specifically listed causes of loss. Less comprehensive than all-risk.

Scheduled Property

Specific items listed individually on a policy with their own values and coverage terms. Used for high-value tack and equipment.

Surgical-Only Coverage

Medical coverage limited to expenses directly related to covered surgical procedures. Less comprehensive and less expensive than major medical.

Tack Insurance

Coverage for saddles, bridles, and other equipment. May be included in farm/ranch policies or purchased separately as inland marine coverage.

Theft Coverage

Protection against stolen horses. Usually included in all-risk mortality. Requires police report and proof of ownership. May have a waiting period.

Transit Coverage

Insurance during transport. May be included in mortality, purchased as endorsement, or standalone. Covers loading, transport, and layover.

Actual Cash Value (ACV)

Market value minus depreciation. Less common in equine mortality than agreed value. Eliminates the need for upfront valuation but creates uncertainty at claim time.

Blanket Coverage

A single coverage limit that applies across multiple items or locations rather than individually scheduled values. Used in some multi-horse or property policies.

Broad Form

A policy that covers a wider range of perils than basic or named-perils coverage. Not as comprehensive as all-risk but more protective than limited perils.

Castration/Elective Procedure Exclusion

Many policies exclude coverage for elective surgical procedures including castration, cosmetic surgery, and other non-medically-necessary operations.

Farm Income Coverage

Optional coverage under farm/ranch policies that replaces income lost due to a covered property loss — for example, boarding income lost after a barn fire.

First-Party Coverage

Coverage that pays the policyholder directly for their own loss. Mortality and medical are first-party coverages. Contrast with third-party (liability) coverage.

Inland Marine Insurance

Coverage for movable property including tack, equipment, and horse trailers. Covers items in transit or stored at various locations, not just at home.

Peril

A cause of loss. Fire, theft, colic, and injury are all perils. All-risk policies cover all perils not excluded; named-perils policies cover only listed perils.

Personal Property

Movable property including tack, saddles, equipment, and personal belongings. Covered under homeowner's or farm/ranch policies, often with specific limits.

Replacement Cost

The cost to replace a damaged item with a new equivalent. Applies to property (barns, equipment) rather than horses. More favorable than actual cash value for property claims.

Valued Policy

A policy where the value is agreed upon at inception and paid in full upon total loss. Equine mortality policies are valued policies — the agreed value is the payout.

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