Determining the insured value of each horse not owned by you but in your care, custody, and control is one of the most critical factors in equine liability insurance. When choosing limits for care, custody, and control insurance, you need to assess the value of each horse in your care and also the total value of horses that could be lost in one catastrophic event, such as a fire, that your business could be responsible for.  When non-owned horses are brought in for training, a contract should be completed, and the accurate value of the horse should be declared by the owner in writing. The insured value of a boarded horse should be based on its fair market value, purchase price, actual training fees paid (excluding board), breeding record, and show record.  An independent appraisal may be necessary in the event of a claim.

The purchase price is often a reasonable estimate for the insured value of a newly purchased horse. It is important for the horse owner to retain records like the bill of sale and canceled checks to document the price. 

It is also extremely important for the boarded horse’s owner to advise the boarding stable if the horse is insured for mortality, major medical or surgical issues, and loss of use events.  The stable should have the insurance company name, policy number, and contact information on file, should a health event need to be reported before the owner can be located to do so him or herself.

Value Appraisals

In the event of the loss of a horse, an independent appraisal may be needed for horses you’ve owned for several years that have changed value since purchase. A qualified equine appraiser can provide a professional estimate of your horse’s fair market value.  Generally, horse insurance companies will evaluate and verify the value of a horse at the time it is insured.  However, they may require an appraisal if the horse is on an insured schedule of horses or if a claim is turned in on a boarding, breeding, or training stable under its care, custody, and control policy or endorsement.  

An appraiser will factor in the horse’s breed, pedigree, usage, training, performance and show record, age, and overall health and condition.  Competition and high-quality breeding horses typically have greater insured values than recreational trail-riding horses, although quality, dependable trail and pleasure horses can command high prices as well.  Understanding evaluation for equine liability insurance and mortality policies is important, and sometimes, an appraiser can assist.  

Ensure Adequate Coverage

Regularly reviewing and adjusting your horse’s insured value is essential to maintain adequate coverage. Contact your horse insurance provider whenever you purchase additional horses if your existing horse increases in value due to success in the show ring, when significant training value has been added, or if a stallion’s breeding record has excelled.