Equine insurance experts answer your questions about insuring Thoroughbreds for the breeding and auction realms.
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QUESTION: How does insuring your home on a farm through the usual homeowner channels compare with lumping it in with a Farm and Ranch Policy?
BRYCE BURTON: Equine Farm and Ranch Package policies are designed for people who own or lease farms where horses, or other livestock, are boarded and pastured. If you own or lease a farm, the chances are that both your Farm Property and Liability coverage needs would be best met under an Equine Farm and Ranch Package Policy. If there are owned dwellings on the farm, from a cost perspective, it makes the most sense to include these dwelling property coverages within the Farm Package policy, in order to have all coverages bundled together.
The main difference between your run-of-the-mill homeowner's policy and a Farm and Ranch Policy is the liability coverage. As a horse owner, or farm operator, you face unique risks that are not covered under a homeowner's policy. If you own horses that are boarded on the property, the package policy includes liability for your owned horses while on and off premises, including but not limited to the racetrack, show ring, breeding shed, etc. Farm owners that board non-owned horses also have the option to place care, custody, or control insurance, which covers the insured in the event that something were to happen to a non-owned horse while in their care.
The liability portion of the package covers the owner or lessee's business pursuits, such as boarding, training, riding instructions, etc., which would otherwise be excluded under a homeowner's policy. Any litigation that may arise as a result of the farm and equine operation, including pending litigation costs, would be covered under the Farm and Ranch Policy, but may be excluded under a homeowner's policy.
Regarding coverage for property, most homeowner's policies exclude farm outbuildings, so appurtenant structures used for business purposes such as barns, offices, and arenas are often excluded from homeowner's policies. Additionally, coverage for business personal property is also typically inadequate or excluded on a homeowner's policy, which results in inadequate or no coverage for farm equipment such as machinery, tack, tools, feed, and hay. On a Farm and Ranch Policy, farm personal property can be scheduled to provide replacement cost and there is no limitation for the business use of the property.
Bryce Burton is a property and liability specialist for Muirfield Insurance. He is from Frankfort, Ky., where he grew up an avid race fan. His Thoroughbred racing fandom combined with a collegiate internship in the insurance industry, culminated in a start in the equine insurance field. Bryce has been with Muirfield Insurance since 2014, following his graduation from Transylvania University in Lexington.
The post Ask Your Insurer Presented By Muirfield Insurance: Covering Your Home With An Equine Farm And Ranch Policy appeared first on Horse Racing News | Paulick Report.
