Animal mortality insurance is a necessity for those involved in businesses based on the health and vitality of expensive animals. There are many different kinds and manifestations of animal mortality insurance but overall the purpose of the insurance is to cover the cost of the animal in the event of its death. This allows the owners of expensive animals more flexibility when it comes to unpredictable events that could cost them all the potential profit they lose with the death of an expensive animal. This is a type of farm insurance that is necessary for farmers, cattle ranchers, equestrians, a police force, zoos, aquariums, race horse owners, and anyone who owns an animal that is highly valuable.
Cost of Coverage
The cost of animal mortality insurance is based on the value of the animal and the potential future profits that stood to be made. This type of policy is not meant for general maintenance of the animal. It does not cover veterinary bills or costs associated with upkeep. If the government issues a mandatory killing of the animal that is not covered under an animal mortality insurance policy. There are other ways that an animal can become ineligible for coverage. If the animal is sick with a pre-existing condition, or if the death is the fault of the owner the insurance policy becomes void. An animal mortality insurance policy also does not cover the animal failing to perform the duties it was intended for. If a stud stallion does not produce offspring, the mortality insurance policy does not come into effect. This issue would fall under a different and specific policy. There are many independent insurance agents as well as the larger, national insurance companies that offer animal mortality insurance that could offer advice as to the right policy for each animal owner’s situation.
The insurance agent will evaluate the animal in order to determine the cost of the animal mortality insurance coverage. Premiums will be based on the age, sex, and value of the animal. Most insurance companies require the basis for valuing an animal to be an actual sales price or appraisal, but only in an event where no sale has taken place. This cost and appraisal need to be renewed annually and typically the insurance company will ask for new values and costs of the animal.
Equine Mortality Insurance
Owning a horse can be a very enjoyable experience. Whether your animal is on the race track or enjoying the day in a large field you need to make sure that the horse is safe. Many owners enjoy taking their horses swimming, but this can be quite dangerous if you don’t know the proper technique. No matter the activity, having insurance will help protect your investment.
The initial value of an animal is important, but it insurance agents also take into account the potential value that you could earn from the animal. Race horse owners know that the value of a horse changes frequently and in the event of death they stand to lose potential millions in race winnings. Horses start at around $3,000 dollars and can cost more than one million dollars. Thousands are then invested in those animals for the care and keeping as well as any potential training the horse may need. Horses can be insured starting at 24 hours old to the age of 18 years old. Exceptions can be made for older horses, but that generally means a larger premium. There are many different options that can add additional coverage to your policy that would cover injury or disease that don’t result in animal mortality. This could help strengthen the overall insurance policy and keep costs down as it would be considered one large policy.
Even horses that are considered purely for pleasure should be covered with an animal mortality policy. Work, breeding, or show horses are also candidates for animal mortality insurance. A policy will help offset the large cost that an animal mortality could cause. Even though it could be considered a pet, the money invested in the upkeep of that pet adds up over the years. Training a new horse for work on your ranch, or for showing can be more expensive than the initial cost. Buying a new horse is expensive, but with the help of animal mortality insurance you can recoup some of your losses in training the animal.
Coverage Specific to Cattle
Cattle are another huge market that needs the protection of animal mortality insurance. Ranchers and other types of farmers recognize the investment they have in their livestock, especially in cattle. Some breeds can cost thousands for one specific animal. If anything were to happen to that animal, the insurance policy could help lessen the financial fallout from the accident. The cost of coverage for the cattle is dependent on the breed, age, what you are using the animal for, and the sex of the animal. Most animals that are insured need to be registered beforehand and also checked out by a veterinarian. Coverage can be anywhere from 15 days to a year. After a year in duration it is customary to get a reevaluation of the animal’s worth. You can also start insuring the cow from 3 months of age to seven years old. Age exceptions can be made, but it comes with the price of higher premiums. Ranchers understand that accidents happen all the time that result in the death of expensive livestock. If a prizewinning steer were to die in a freak accident, the financial costs would be huge. With the help of an animal mortality insurance policy the rancher can feel more secure in an investment because they know they will be financially protected.
Most any animal can be covered under an animal mortality insurance policy. The two most common are horses and cattle, but other farm animals that hold value are eligible for coverage. Exotic animals, those owned by zoos and by individuals, are also eligible for coverage from an insurance company. there are many companies that deal only in animal mortality policies. They each have their own specific ways of determining cost and coverage. Zoos and aquariums are common policyholders and insure almost every single animal they have. An orca whale could cost an aquarium one million dollars. Without animal mortality insurance the loss of that caliber of animal could cripple a business.
Race horses, circus animals, zoo animals, marine mammals, aquarium animals, and domestic animals are all available for coverage. The procurement of these animals is costly. That is why they have enough value for insurance to be necessary and useful. Then you have to factor in the cost of training and keeping those animals. These unique and special animals have increased value and should have their own special insurance policy. They are different than most other livestock and cattle in that each specific animal has a high value.
Police dogs are a good example of an animal that needs a specific animal mortality policy. They are highly trained tools that cost a lot of money to start with and the training adds even more value. Some police dogs are imported from Europe and can cost up to $8,000. The training that the police force then goes through for the dogs is around $15,000. The reality of the situation is that these dogs can be in dangerous situations. They need to have animal mortality coverage in order to protect the police force’s investments.
Farmers are typical policyholders of animal mortality insurance. They need protection for their bucking bulls, show and breeding cattle and hogs, as well as any other work animals they use on their farm. The policy will provide coverage for an animal if it dies from an accident specified in the policy or even from natural causes. There is protection from accidents because of fire, lightning, windstorms, hail, and even smothering of animals due to a blizzard. Most policies protect farmers from the theft of their animals as well. This can allow most small or large farmers to have financial security. Some specialized farm insurance does provide for loss due to disease, old age, or death by natural causes. This has to be purchased specifically as it is not found in every single animal mortality insurance policy. Farmers also have a grace period to obtain a new insurance policy for new animals. During that time period the new animals are covered under the mortality policy.
Animal mortality insurance makes sense for anyone who has invested in an animal. That investment deserves to be protected. Any investment can be tricky, but an investment in animals could be tenuous at best. As a living thing, the future of an animal is unknown. Animal mortality insurance allows the policyholder to more freely invest in the future. They can feel certain that even in the event of some misfortune they will be financially protected and they have a chance to start over again.
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