Advice re: insuring loan horse please.

[MaggieMcVitie]

I went to look at a possible loan horse today and she is lovely. Perfect for me at the stage I am at, good natured and forward going, but calm and steady. So far so good.

Part of the loan agreement would be that I insure her to include loss of use. However the owner wants her insured for £5000! She is a Dales mare and I am fairly sure she is not worth this from looking on the Internet.

How can I approach this with her?! I really like the horse and am quite prepared to insure her, but not for more than she is worth - I can't afford to be throwing money away effectively. At £5000 she'll be costing me around £80 a month, at £2000 around £35-40. Any advice?

[frostyfingers]

TBH "loss of use" is a pointless insurance really - the insurance companies work very hard not to pay out on it and have endless exclusions and ways of not coughing up...... I don't have loss of use, but I do have mortality: my horse has severe kissing spine, and whilst ok at the moment there will come a time when he's unrideable. When I asked the insurance company what happens then they said that they would not pay out as the horse could retire to the field - even though the vet has said that this is not a sensible option as he could only be kept pain free with increasing amounts of bute - that's fine said the insurance co... So they are happy for it to be pumped full of pain killers and mooch around a field in discomfort. If I choose to have him put down they will not pay.

I would look very closely into what loss of use would give the owner, ask the insurance companies questions in what circumstances they DON'T pay out and then have an open conversation with the owner. IMO vet's fees are by far the most important element of insurance, plus public liability.

[willyoulistentome]

Is the owner intending to keep the policy in their name - but have you pay the bills?
I have loaned my horse out before and I most definitely wanted to insure the horse MYSELF for my own peace of mind. How would the owner know if you stopped paying the bills. If you are paying he insurance how is she intending to get the money off you if the worst happens. you could just keep it. It would be payable to you surely.

I think the ownew should pay the insurance themselves - it's their horse after all.

[Littlebigbum]

Ask the owner who she uses at the minute, then she might see that it is a bit mute to do that.

[Booboostoo]

I am not a fan of loss of use insurance either, the really effective one is vets fees, however if that is what the owner wants, that is what the owner wants! I think your only options are to negotiate something with the owner (vets fees only, lesser value or share the costs) or not take the loan. Telling her you will insure the horse and not doing it on the agreed terms is not an option imo as it would be quite unfair on the owner.

[N0tinmylife]

I think the only way to approach this is directly, and honestly. Say exactly what you have said here. When having a horse on loan I think the relationship with the owner is almost as important as how you get on with the horse. If you can't have a frank and open conversation with her, it could end up being a nightmare in the future. You both need to be 100% clear where you stand!

[Pixel]

I was going to say the same about 'loss of use'. We haven't bothered with it to keep the premiums down as it's too much of a grey area too many ways they can wriggle out of paying. And £80 a month is an awful lot of money!

I agree there's no choice but to talk honestly with the owner although I get that it's hard to tell someone their horse isn't worth as much as they think!

[Mirage]

Neither of ours are insured for loss of use,but are for vet's bills.Our loan pony wasn't insured at all by his owner as she has 5 and it isn't worth it,but I insure him as I don't have spare money for big bills.

If you did insure for lou,wouldn't the insurers pay you in the event of claiming,rather than the owner,as you are the person paying the premiums? Therefore she would be dependent on your good nature to hand over the money to her.

[MaggieMcVitie]

Thank you! Have been thinking all day about it.

She is lovely, but the first horse I've seen and I've surprised myself by my objectiveness today, largely due to your sage advice!

I got in touch with the owner today and suggested meeting up to talk through the insurance details having rung round a few companies this morning. She can't do anything now until after Easter w/e. I am wondering how committed she is to a full loan actually, she said she had another girl (16) who was interested in the loan but she didn't think she was suitable, this girl was apparently very keen, kept getting in touch etc but she hadn't told her yet that she didn't want to loan to her . I really think she should tell her, it's not fair to keep her hanging on and also wonder if the same might happen to me...

Yesterday she said ideally she would keep her at home and have a part loan, but as I told her that just wouldn't work for me - too far away (a good 40 mins). That was when she said about the insurance if I was to take her on full loan.

So, I am keeping an open mind at this stage and hope it's open to discussion but if it doesn't work out I'll just keep looking - and hope the right horse/owner/arrangement comes along soon!