Q7) What should I consider when choosing an insurance company?
The two most important considerations are the company's history of paying
claims, and the financial soundness of the company and its underwriters.
Horse-owners should look for a stable, established, financially secure company
with a good track record. The company's financial rating should be at least B+
and preferably at least A-, and horse-owners should avoid purchasing insurance
from an unrated company.
Horse-owners should also look for an admitted company, which does business
under the regulations of their particular state and with the protection of their
state's guarantee fund. If a horse-owner deals with an insurance company that is
not admitted and licensed in his state, that horse-owner will have no protection
from the state in the event of a disputed claim. A horse-owner may call his
State Commissioner of Insurance to verify that a particular insurance company is
If possible, horse-owners should also look for a company that will pay Agreed
Value (the horse's value according to the policy in force) rather than the
current market value, which may be significantly less. And horse-owners at any
level - whether they own a racing stable or one back-yard horse - should read
their policy carefully and ask their agent to explain anything that they do not