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  1. #1
    Join Date
    Feb. 2, 2010
    Location
    Neither here nor there...
    Posts
    300

    Question Half Leasing and Insurance

    I am beginning the process of getting quotes for Mortality/Major Medical on a horse I am half leasing. I am all for the policy, as I think that paying half the premium and deductible would be worth it in case of an emergency.

    My question is this: As someone who is only half-leasing, is it normal to have the lessee pay the premium for the the Mortality portion? They are wanting to insure him for $15,000 (what they paid for him several years ago), which I think is crazy given that he's been sitting in a pasture for quite some time doing nothing, and there is no way they could sell him for that now, but I digress.

    If they insure him for that amount, and something does happen, there is no guarantee they'll even recoup that much if the insurance company determines he wasn't actually worth that, right? And obviously, I as the half lessee would not be paid out any of the money they receive in the unlikely event of his death.

    I've never taken out a Mortality policy on a horse being leased, nor do I know anyone who has so I have no point of reference.

    Please enlighten me. TIA!



  2. #2
    Join Date
    Jan. 12, 2004
    Location
    Florida
    Posts
    2,012

    Default

    I have half-leased a horse for over two years, and have half-leased for shorter time periods before that. I have never heard of the lessee being responsible for insurance. Why should you be handling this cost when you are not the payee in event of loss?

    IMO, the horse's owner should be handling it, and rolling half the cost of the premiums into the half-lease charges along with all the other expenses.
    "Horses give us the wings we lack"



  3. #3
    Join Date
    Feb. 2, 2010
    Location
    Neither here nor there...
    Posts
    300

    Default

    Quote Originally Posted by equest View Post
    I have half-leased a horse for over two years, and have half-leased for shorter time periods before that. I have never heard of the lessee being responsible for insurance. Why should you be handling this cost when you are not the payee in event of loss?

    IMO, the horse's owner should be handling it, and rolling half the cost of the premiums into the half-lease charges along with all the other expenses.
    That's what I was thinking. I had just been wondering if I was wayyy off base.

    Like I said, I'm happy to pay my half of the major medical, and split the deductibles, but I balk at paying a premium for something I won't ever see any return on.



  4. #4
    Join Date
    Jul. 3, 2007
    Location
    Central,PA
    Posts
    713

    Default

    While not entirely revelant..

    I recent leased my horse out- As a free, long term lease but required them to purchase and carry major medical and mortality during the lease.

    Some of the things that were an issue (for us anyway)

    While sale value of him at the time of lease would range from 5,000 to 7,500 I wanted him insured for 10,000.

    Because if you insure for major medical at 5,000 it will only cover 5,000 worth of medical bills. If it would come down to it this wouldnt even cover colic surgery.

    To cover him for 10,000 which would allow for another 8,000 in medical coverage only cost 77.00 more dollars per year. In the end it just made sense.

    Do the math and even ask questions to the Ins. carrier you are looking at. Like I said the differance between 5,000 and 10,000 was only 77 dollars.

    I do agree they should have looked into this prior to agreeing or deciding to lease price. This should of been rolled into that along with any other extras they deem necessary. However, you should also be aware of what you are paying for and it should be listed in the lease contact.

    Your monthly fee ( or however you are paying) covers

    Board
    farrier
    Ins.
    Use of tack
    annual vet checks

    etc etc etc. it should also include what it does not cover... say yearly shots are not covered and you are expected to split the costs. They should do the math and split it. However I do thing a half lease should be an all inclusive monthly rate. Keeps it easier for everyone.
    Ride it like you stole it....ohhh sh*t



  5. #5
    Join Date
    Apr. 29, 2006
    Posts
    3,427

    Default

    Quote Originally Posted by eventerdiva View Post
    Like I said, I'm happy to pay my half of the major medical, and split the deductibles, but I balk at paying a premium for something I won't ever see any return on.
    I guess I would look at "the return" as getting to half-lease a horse you like.

    If something happens to the horse on your time, the owner stands to lose a lot more than they would be getting a return on, even if the company paid out $15K.

    If the owner never had the horse insured before and is only doing it because you are half-leasing and increasing the risk to the horse, then I almost think you should be covering the ENTIRE cost of the insurance. jmho.



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