You just claimed a horse at Churchill Downs for $20,000. The “Shake” went your way. You own him. But he has to run the race before he comes to your barn. If he breaks down on the homestretch, you just bought a dead horse. Unless you have “Fall of Hammer” insurance.
Key Takeaways
- Fall of Hammer: Coverage that binds the instant you become the owner (when the claim slip drops or the gavel falls), covering the race itself.
- High Premiums: Racehorse mortality rates are 2x-3x higher than sport horses (often 7% – 10%).
- Claiming Races: In a claiming race, ownership transfers at the start of the race. You own the risk while he is running for someone else. You must have a claims slip policy.
- Infertility Focus: For colts, “Stallion Permanent Disability” (AS&D) is huge. If a promising colt gets hurt and can’t breed, you lose millions.
The “Why” (The Trap): The Ownership Gap
In claiming races, the rule is usually “You own the horse from the moment the starting gate opens.” (Check local track rules, they vary).
The Trap: If he breaks a leg in the race, the previous owner keeps the purse money, but you own the euthanized horse. Without specific claiming insurance, you are out the claim price.
The Investigation: The Specialty Market
You cannot call State Farm for this. I looked at the niche providers.
Hammertown / K&K
- Product: “Claiming Coverage.”
- Process: You pre-register with the insurer. You call them before the race: “I am dropping a slip on Horse #4 in Race 6.” Coverage is bound.
- Cost: High per-race fee or annual policy.
Larkins / Lloyds
- Focus: High-value bloodstock.
- Pros: They understand “Prospective Foal” and “Stallion Shares.”
- Cons: Minimum premiums are often $1,000+.
Comparison Table: Racehorse vs. Sport Horse
| Feature | Racehorse Policy | Sport Horse Policy |
| Rate | 7% – 12% | 3% – 4% |
| Medical | Surgical Only (usually) | Major Medical |
| Coverage Basis | Agreed Value | Agreed Value |
| Claims Triggers | On-Track Breakdown | Colic/Lameness |
[IMAGE: Photo of a starting gate opening with an insurance policy overlay]
Step-by-Step Action Plan
- Set up an Account: Do this weeks before you go to the track. You need a relationship with a bloodstock agent.
- Pre-Bind Claims: Never drop a claim slip without calling your agent first.
- Check Track Rules: Some tracks have “Voided Claim” rules if the horse dies on track (protecting the claimer). Know the rules of that specific jurisdiction.
- Surgical Only: Don’t bother with Major Medical for racehorses; it’s rarely offered. Get Surgical to cover colic or chip removal.
FAQ
Does this cover gelding?
Racehorses are often gelded. Standard policies exclude death from castration unless you buy the specific extension.