A Cost of Doing Business

I am often saddened by the circumstances under which clients call me. Appraisals are mostly fun, but it tugs on my heart strings when I hear of a horse lost to a terrible accident. It's even more difficult when I hear of the financial hardship this places on the owner.

Several years ago, a promising young show mare was being readied for a run at her first World Championship title. The industry was a-buzz with news of this "amazing mare" and many people were hoping to catch a glimpse of a spectacular performance. Just a couple of weeks prior to the highly anticipated event, the mare perished in an accident at the trainer's facility.

Later, we were contacted to perform an appraisal to assess the mare's value at the time of her death. Litigation was pending and the parties could not agree to how much the mare was worth. I was surprised to learn that the mare was NOT insured at the time of her demise. Her owner felt it was too expensive to insure her!

Five years later, a settlement has not yet been reached between the parties.

Please do not let this unfortunate situation happen to you. Insuring your show horses is a cost of doing business. It's also a very smart investment for those of us who cannot simply afford to replace our horse in the event of the unthinkable.

With the economic downturn and downward pressure on sale prices, I have recommended that you make sure your horse is not over-insured as a way to save money. But I hope that you realize the importance of having your horse insured, period. Under-insuring or skipping insurance altogether is a mistake for all but the least expensive horses.

Insurance provides a financial asset to compensate you in the event of catastrophic loss. Some policies also cover loss of use or medical expenses. And, insurance documents your honest assessment of what your horse is worth. If the unthinkable happens, there is proof of the horse's insured value - even if it is not equal to the fair market value of the horse at the time of his / her demise.

Please investigate the options and determine which insurance product best meets your individual circumstances. There are many companies from which to choose, many offering discounts to members of various breed associations. Ask for references from your prospective agent. Hearing from current customers about their claims experience is a wise way to pick a company you can trust.

Insurance is one of those things I hope you never actually need. But, if you should need it, you'll be happy you did the legwork in advance to protect yourself.