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LOSS OF USE...WHAT IS IT REALLY?
Are you aware that you can't get loss of use for a pleasure horse? Well, the fact is that the only animals eligible for loss of use are show or breeding horses. The reason for that is there is NO OTHER use other than pleasure for a show horse or breeding stock. What happens is this: A show horse must be unable to perform in the show ring (jumping, equitation, dressage) but it must be a permanent injury to get paid off on this coverage. The same holds true for breeding stock unable to breed. The company has the option of either keeping the horse and doing with it what they want or paying you off and letting you keep the horse.
Now let's get into what you pay for this and how one gets paid for it. First, lets get one thing straight in our minds. A horse that is laid up for a non-permanent injury for a couple of months and can't show will not collect under this coverage. (Loss of use MUST BE ATTACHED TO MORTALITY COVERAGE.) The injury must be of a permanent nature and render the horse incapable of performing its function. (This is not to say it cannot be ridden. If I have a hunter or jumper and the horse can't jump EVER again but would make a nice pleasure horse or beginner on the flat the the process continues.)
Let's say you want to keep your horse. Now an adjustment will be made to the normal settlement which will range from 40% to 60% of the declared value on the policy. For simplicity, let us assume that the value declared is $10,000 and has been agreed upon as the true value. Now you would have to settle for the percentage on your policy of, in this case, 60% or $6,000. (This is provided your company offers 60% of value, it varies.)
The cost on top of mortality is 2 to 3% of the value. It is important to know what your needs are. Naturally a horse has to be sound and free from injury prior to obtaining LOSS OF USE.
If you would like to contact us, need additional information or have questions, please feel free to email us. |
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