You’ve paid your premiums for five years. Then your horse finally has a bad year—colic surgery ($10,000) and a suspensory injury ($5,000).
You’re grateful you had insurance.
Then the renewal letter arrives:
“We are declining to renew your policy.”
—or—
“We are renewing with a permanent exclusion for colic and legs.”
Key Takeaways
- Equine Insurance is NOT Guaranteed Renewable: Unlike human health insurance, horse insurers can drop you at the end of the 12-month term if the horse becomes a “bad risk.”
- The “12-Month Extension”: Most policies have a clause that extends coverage for a specific claim for 12 months after the policy expires, but they won’t cover new issues.
- Exclusion Stacking: If they do renew you, they will exclude the body parts that were treated. A horse with a Colic and Suspensory exclusion is basically uninsured.
- Guaranteed Renewal Endorsements: Some luxury carriers offer this for high-value horses, but it’s rare.
The “Why” (The Trap): The Term Policy
Horse insurance is a 1-year Term policy. Every year is a new contract.
The Trap: You think you are covered for life. In reality, you are covered for 365 days. If the horse develops a chronic condition (Cushings, Navicular), the insurer pays for the current year and then non-renews or excludes it forever.
The Investigation: The Extension Clause
I read the “Extension of Coverage” clause in a standard jacket.
- Standard Wording: “If a condition is reported during the policy period, we will continue to pay for that specific condition for up to 12 months from the onset, even if the policy expires.”
- Implication: If your horse tears a tendon on Dec 1st, and policy expires Jan 1st, they keep paying for the tendon until next Dec 1st. But they won’t pay for a new colic after Jan 1st if they non-renewed you.
Comparison Table: Renewal Outcomes
| Scenario | Insurer Action | Your Coverage |
| One Colic Surgery | Renew with Colic Exclusion | Covered for everything except Colic |
| Chronic Lameness | Non-Renew (Too high risk) | Uninsured for new claims |
| Old Age (18+) | Drop Medical / Mortality Only | Mortality Only |
[IMAGE: Image of a “Non-Renewal Notice” letter on a desk]
Step-by-Step Action Plan
- Maximize the Claim: If you are being non-renewed or excluded, ensure you get every penny of the current claim paid before the 12-month extension runs out.
- Shop Around (Carefully): If Carrier A drops you, Carrier B asks “Have you been non-renewed?” You must say yes. It is hard to find new coverage.
- Switch to “Mortality Only”: If no one will write Medical, try to keep Mortality coverage to protect the asset value.
- Accept the Exclusion: Coverage with an exclusion is better than no coverage.
FAQ
Can I hide the non-renewal from a new company?
No. Insurers share claims history databases. They will know.