FROM YOUR INSURANCE ADVOCATE
BY REO PRITCHARD, OWNER OF R.E.O. & YOUR INSURANCE ADVOCATE
HOW YOU CAN SAVE MONEY BY COVERING THEM
INSTEAD OF RISKING THEM
Many people with multiple head of horses in their barn look at insurance and say, “Well that would be nice but it doesn’t make sense for me. By the time I insure all my horses I will have spent enough money on insuring the horses as I could buy a new horse if one dies”.
That is true if you look at the standard insurance policy. What people may not realize it that if they have more than 10 head of horses they would like to insure, they could qualify for a stable discount or purchase a deductible policy.
The first option is exactly what it sounds like, if you have 10 or more horses and qualify, you could receive a discounted base rate on the mortality policy for those horses.
The second option is a deductible policy. Most people understand deductibles for their home or auto coverage but are unaware you can purchase a deductible policy for your horses.
Like your home or auto, the higher you make your deductible the lower the premium you pay. A standard mortality policy does not have a deductible.
Let’s say you purchase a deductible policy with a 2% deductible on your schedule of horses valued at $500,000. That equates to a $10,000 deductible. If you have a horse die with a value of $25,000 you would be paid out $15,000. If you have a second horse die valued at $30,000 you would be paid the full amount as you have already met your deductible for the year.
By purchasing a deductible policy you significantly buy down the base rate you pay so that your upfront cost is much less. This allows you to obtain coverage on all your horses at a more cost effective up front cost and shift some of the cost to the claims portion. Each individual schedule of horses can be evaluated on their own basis and multiple deductible options can be quoted to help reach the price point and risk point that meets your needs.
Contact us to find out more about large schedule coverage and how we can reduce your risk, meet your needs, and write coverage that also makes sense for your budget.
SALE TIME MADE EASIER WITH PRE-APPROVED FALL OF THE HAMMER COVERAGE:
AUTOMATIC COVERAGE AS SOON AS THAT HAMMER FALLS
R.E.O. Insurance Agency can provide you with pre-approved for any horse sale you are going to so that you have coverage from fall of hammer on any horse you purchase. Contact us prior to the sale and let us know what your budget is for a sale and we will get you pre-approved for that amount.
You will then be able to go to the sale, purchase your new horse and take possession of the horse with the knowledge that you are covered the instant you buy the horse. No need to run to a booth beside the sale ring and stand in line to get coverage, because you will have automatic coverage before you get to the sale ring! Spend more time looking at horses and visiting with friends and fellow horse owners on sale day in lieu of standing in line waiting to get insurance coverage for your new horse!
R.E.O. Insurance Agency can give you the peace of mind before that hammer falls! Contact us prior to the sale and we'll give you that freedom to enjoy the very first step of horse ownership!
R.E.O Ranching Equine Operations
P.O. Box 14
Springtown, TX 76082