Ask Your Insurer: When And Why To Change A Horse’s Insured Value

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Equine insurance experts answer your questions about insuring Thoroughbreds for the breeding and auction realms. Email us at info@paulickreport. com if you have a question for an insurer.

QUESTION: When should I consider increasing or decreasing the insured value of my horse, and how do I do it?

BRYCE BURTON: There are various reasons that a policyholder would want to amend the insured value of their horse, which is done in order to accurately cover the horse for its true value.

For a racer, the owner would want to increase the value if the horse has won a race that inherently increases the value of that horse, or even if the owner has received an offer for the horse, which is higher than what that owner currently has the horse insured for. The same goes for decreasing the value of an insured horse, which would normally be done if the horse is dropping in class, for instance, from an allowance race into the claiming ranks.

With respect to broodmares and foals, an event within the family could spark the need for an increase. For example, if the first foal out of an insured mare were to win a big stakes race, it may be worth looking into increasing both her insured value and potentially any of her promising foals.

Depending on the size of the increase, either a veterinary certificate or a declaration of health, which can be completed by the owner, will need to be completed on the horse. Once approved by the company, the increase or decrease in value will be calculated on a pro-rata basis. This means that you will only be charged for your time on risk for the increase. So, if the increase is put into effect six months into the policy period, you will only pay for that increase for the remaining six months.

QUESTION: Can the Full Mortality Rates provided by the company be changed in the middle of a policy-term?

BRYCE BURTON: Yes. If the insured horse’s use is changed in the middle of the policy period, the rate will be changed respectively. The most common example of this that we see is when a horse is retired from racing. If it’s a filly and she is taken off the track to be bred, we would decrease her Full Mortality Rate mid-policy term and the insured would receive a return premium, or credit, for the remaining time on risk. The same would be true if a gelding were retired from racing and re-trained for another discipline.

Bryce Burton is a property and liability specialist for Muirfield Insurance. He is from Frankfort, Ky., where he grew up an avid race fan. His Thoroughbred racing fandom combined with a collegiate internship in the insurance industry, culminated in a start in the equine insurance field. Bryce has been with Muirfield Insurance since 2014, following his graduation from Transylvania University in Lexington

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Ask Your Insurer: Does It Cost More To Insure A Broodmare Prospect Over A Veteran Mare?

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Equine insurance experts answer your questions about insuring Thoroughbreds for the breeding and auction realms. Email us at info@paulickreport.com if you have a question for an insurer.

QUESTION: How do the process, options, and rates differ for insuring a broodmare prospect compared with a veteran broodmare?

BRYCE BURTON: The process of having a broodmare prospect insured is the same as insuring a veteran broodmare. In order to bind coverage, obtaining a quote from your agent is the first step. Once the quote is accepted by the insured, the agent will instruct the company to issue the policy on the owner’s behalf. Unless the mare is purchased at auction, a veterinary certificate or statement of health form will also need to be completed on the mare in order to bind coverage.

The coverage options for both a broodmare prospect and veteran broodmare are Full Mortality, Prospective Foal, and Barrenness coverage. Full Mortality coverage, also known as all-risk coverage, will cover the mare for death due to any cause. Once the mare is confirmed 42 days in foal, the owner will also have the option to place Prospective Foal Insurance, covering the mare’s unborn foal until a specified amount of time after birth. Lastly, the owner has the option of placing Barrenness coverage on the mare, which insures that the mare will get in foal given that she is covered by the stallion a minimum of two times during two separate oestral periods. Barrenness coverage is more likely to be placed on a broodmare prospect or young broodmare in conjunction with a No Guarantee season purchase.

The rates can differ when insuring a broodmare prospect as opposed to a veteran broodmare. The Full Mortality rate for a broodmare prospect will be the same until the mare is roughly 13-15 years old, depending on the carrier. At that time, the mare is considered overage and the Full Mortality rate quoted by the carrier will be higher. When placing Prospective Foal and Barrenness Prospective Foal insurance coverages, there are a handful of variables that will directly affect the rate provided by the company. Generally, insuring a prospect or young broodmare for Prospective Foal and/or Barrenness will result in a more favorable rate than a veteran, which is more likely to have a blemish on her produce record.

Bryce Burton is a property and liability specialist for Muirfield Insurance. He is from Frankfort, Ky., where he grew up an avid race fan. His Thoroughbred racing fandom combined with a collegiate internship in the insurance industry, culminated in a start in the equine insurance field. Bryce has been with Muirfield Insurance since 2014, following his graduation from Transylvania University in Lexington

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