Top 5 Reasons You Don’t Need Loss of Use Insurance for Your Horse
Let’s talk about the insurance that sounds like a no-brainer…until you read the fine print.
Loss of Use coverage feels tailor-made for horse owners. After all, horses are four-legged chaos machines that specialize in career-ending injuries and vet bills the size of your mortgage.
It sounds great—protect your investment in case your horse can’t do their job anymore, right? But in reality, it’s a pricey add-on with limited scenarios where it actually pays out. For starters, it’s usually only available for horses insured at $100,000 or more. And even then, it typically only reimburses 50% of the horse’s insured value, requires a full vet certificate, and can more than double your premium.
Here are five reasons why you probably don’t need Loss of Use insurance and what you should do instead.
1. It’s really hard to qualify for a payout
Let’s be honest: this is not your average “file a claim and get a check” type of coverage. Loss of Use insurance only kicks in under very narrow circumstances. Your horse must suffer a permanent, career-ending injury, but not be a candidate for euthanasia, and still be alive, and not be breeding, and also not able to do any work, ever again, in their discipline…
...but also still be alive and not for sale. It’s complicated.
Insurers can require multiple specialist diagnoses, extensive documentation, and often their own vet to examine the horse. If your horse has an injury that might heal, or could switch careers, or even just have a comfy retirement in a pasture—they probably won’t approve the claim.
2. Most horses don’t even qualify for it
Here’s the thing nobody mentions: Loss of Use coverage is typically only available for horses insured at $100,000 or more. If your horse is valued below that threshold, most carriers won’t even offer the option.
And even if your horse makes the cut, you’ll often be required to submit a full vet certificate, sometimes with X-rays or specialist exams depending on the company. It’s not just a quick checkbox—it’s a process.
So unless you’re dealing with elite-level athletes, you’re likely not even eligible. And if you are? You’ll be jumping through hoops just to get it added to the policy.
3. Your premiums might be better spent elsewhere
Loss of Use is one of the most expensive add-ons in equine insurance. Depending on your horse’s value and discipline, it will cost thousands of extra dollars a year.
That money could do more work elsewhere:
Get solid Major Medical coverage. It’s the MVP of horse insurance. Work with your agent to find the best coverage for your situation.
Make sure you’re happy with your Mortality coverage. Don’t under-insure.
Stash cash for emergencies. Whether it’s in a savings account or a coffee can in the feed room.
Consider investing in diagnostics early. Catching injuries early can mean a full recovery instead of a permanent issue (even more reason to have ample medical coverage!)
4. There’s a catch—literally: they might take your horse
Yes, you read that right. In some cases, if a Loss of Use claim is paid out, the insurer has the right to take ownership of your horse. Some companies give you the option to keep them—with a percentage deduction in the payout—but others may require you to surrender the horse.
Let’s say you’ve spent years bonding with your accident-prone soulmate. Do you really want to hand them over like a used car just to get a check?
Probably not.
5. Coverage drops off when you still need it most
Most policies won’t offer Loss of Use coverage past a certain age—often between 12 and 15 years old. Ironically, that’s around the time when your horse’s body starts sending you “return to sender” notices after every jump, spin, or extended trot.
So the years when you’re most likely to need it? Not covered.
So When Is Loss of Use Insurance a Good Idea?
Loss of Use Insurance for horses can make sense if you’re leasing a high-value horse and the owner requires it as part of the agreement. In that case, it’s less about peace of mind and more about protecting the owner's asset.
But for the average amateur, lesson program, or even most mid-tier competitors, it’s a pricey add-on with limited return. The payout rarely matches the cost—or the headache.
In most cases, you’re better off putting that money toward stronger Major Medical, higher surgical coverage, or just building an emergency fund. Those options kick in when it matters most—when your horse is injured and you’re staring at a bill that looks like a used truck.
Conclusion: Insurance That Works as Hard as Your Horse
Loss of Use insurance sounds like it should be essential—after all, horses are experts at doing ridiculous things to themselves. But unless you’re insuring a six-figure animal with contractual obligations, it’s often expensive, restrictive, and unlikely to pay out.
In most cases, you’re far better off investing in robust Major Medical and Surgical coverage, making sure your Mortality coverage is realistic, and setting aside an emergency fund. These options offer more flexibility, faster access to care, and less red tape—when your horse needs it most.
Ready to Find the Right Coverage for Your Horse?
Not sure what level of insurance makes the most sense for your program? At Pony Policy walk you through your options, break down what you really need (and what you don’t), and make sure you’re covered when it counts. Talk to us today to find out more about what makes sense for you!
Loss of Use Insurance for Horses
Q: What is Loss of Use insurance for horses?
A: It’s an optional add-on that reimburses a percentage of your horse’s insured value if they suffer a permanent, career-ending injury and can no longer perform their insured job—but are not candidates for euthanasia.
Q: What does Loss of Use insurance typically cover?
A: It usually covers 50% of your horse’s insured value if they’re deemed permanently unable to perform their intended use. It does not cover temporary injuries, career changes, or most conditions that can be rehabbed.
Q: Is Loss of Use insurance worth the cost?
A: For most horse owners, no. It can double your premium and comes with strict qualifications and payout limits. Unless your horse is worth $100,000+ and under contract, the return usually isn’t worth the price tag.
Q: Who qualifies for Loss of Use insurance?
A: Generally only horses insured at $100,000 or more, and even then, only with a complete vet certificate and possibly additional diagnostics like X-rays or specialist exams.
Q: What coverage should I prioritize instead?
A: Focus on:
Major Medical/Surgical Coverage
Colic Surgery Coverage
Accurate Mortality Coverage
A personal emergency fund
These are the coverages that consistently deliver value and can be used across a wide range of real-world scenarios.
