Our coverage and explanations: Loss of Use Coverage

Today, we are continuing our blog series for our client base, with explanations of our coverage.  Remember, if you are not a current client, or would like to become one, please visit us online at: www.equineinsuranceagent.com! We would love to help you!

Loss of Use Coverage 

The horse must be in good health, with no injuries, sickness, disease or lameness issues past or
present. To qualify for LOU the minimum value of the horse must be at least $25,000.00
and it must be between the ages of 3 to 12. Please contact our offices for questions on any
specific conditions you think may not meet requirements. The company offers two different
types of loss of use coverage. The first one is loss of use #1 which covers the horse for
accidental, external trauma. The rate is 2.5% of the mortality value listed on the policy. The
second option is Loss of use #2 which covers the horse for accidental injury & illness or disease.
The rate is 3.75% of the mortality value listed on the policy. In both cases a regular vet exam is
required. For loss of use #2 coverage we also require that x-rays and flexions be done for the navicular bone, Proximal Sesamoid bones, Fetlock joints, and tarsal joints. The results must be
sent to us to be reviewed by the underwriters.

Payout Method
• Loss of Use #1: 50% of insured value if you keep possession of the horse and 60% if you
give possession of the horse to the company.
• Loss of Use #2: 50% of insured value if you keep possession of the horse and 75% if you
give possession of the horse to the company