Every horse owner would say that they could not put a price tag on their horse’s life. However, when taking out an insurance policy for your horse, it is imperative to firstly understand the type of insurance policy you are taking out and if your cover includes mortality, that your horse is insured for the correct amount.
Fair market value is the amount of money that your horse is worth or would be worth if you sold it in its current state.
Some factors determining fair market value:
An example of fair market value would be if you brought a horse intended for horse racing for a certain amount and a few years later your horse has suffered any injury and cannot race any longer, the fair market value of your horse is different to when you first brought your horse.
Over time the value of your horse will change so when it comes to insuring your horse, you must remember the following points:
- Understand what fair market value is
- Get informed
- Read over your policy documents to understand the policy terms and conditions
- Undertake an annual review of your horse’s market value by a licensed valuer to ensure you are not over-insuring or underinsuring your horse.
There are many recognised organisations that offer a fair market valuation for your horse such as:
- Royal Institution of Chartered Surveyors (RICS) – https://www.rics.org/oceania/
- Australian Property Institute (API) – https://www.api.org.au/
Should you have any questions regarding our horse insurance, your horse’s policy or need help finding a valuer, please do not hesitate to get in touch with our friendly customer service team on 1300 731 324.