About Pet Insurance

If your pet becomes ill or is injured in an accident, you could face veterinary bills running into hundreds of pounds. Medical treatment for the most common injury -a broken leg - can cost up to £300 for a cat and £1,000 for a dog.

As a pet owner, you could be held responsible - legally liable - for damages, possibly running into thousands of pounds, if your pet injures another person or damages their property.

Pet insurance can be the answer to these problems. In addition to paying vet bills and covering your legal liability, a policy provides a whole range of benefits. These include paying you a lump sum on your pet's death or loss by theft or straying, and kennel or cattery fees if you need to go into hospital.

This leaflet concentrates on insurance for your cat, dog or horse. Policies are also available covering all types of pets including the more unusual and exotic animals.

Dogs and Cats

Typical Policy Cover

Most policies provide some or all of these benefits:

Vets fees for treatment should your pet suffer an illness or accident;

The cost of treatment is usually covered up to a limit, such as £1500 in respect of each illness or accident;

A lump sum is payable if your pet dies as a result of an accident. Cover may also be available should your pet die from an illness before reaching a specified age;

Your legal liability if your pet injures someone or damages their property. The policy will pay any damages for which you are legally liable - normally up to £2m;

Loss of your pet by theft or straying;

The cost of kennel or cattery fees if you or your partner suddenly have to go into hospital. These fees are normally limited to a specified amount such as £300;

The cost of cancelling your holiday if your pet needs emergency surgery;

Recovery costs. If your pet goes missing, the policy pays the cost of advertising and reward up to a stated amount;

Burglar reward. Some policies pay a cash sum if your dog catches an intruder in your home.

Some insurers offer a legal advice service 24 hours a day every day of the year.

Dangerous Dogs Act 1991

A number of breeds of dog are defined in this Act. If you own one of these you must have insurance against your legal liabilities if your dog attacks and injures another person. You will probably need a separate insurance policy to cover this aspect. A standard pet insurance policy or home contents policy sometimes provides this cover. In any event check the position with your insurers.

Exceptions and Exclusions

Normal exclusions include vaccinations, preventative treatment, pregnancy, spaying or castration (unless for medical reasons) and illnesses diagnosed before you took out the policy. Policies will not pay a lump sum if your cat or dog dies through illness after it reaches a specified age. You may also have to pay the first part of each and every claim. This is known as an 'excess'. The amount of the excess will be shown in your policy - probably £25 or £50.

Cost

Premiums depend on the level of cover required, and with dogs the breed and area where you live. If you have made previous claims, if your pet is used in connection with your trade or business, the premium will be higher.

Horses and Ponies

There are a number of policies available to cover horses and ponies, and associated equipment such as horseboxes, trailers and riding tack.

Typical Policy Cover

Most policies provide some or all of the following benefits:

Vet fees for illness or accident - the cost of treatment is usually covered up to a limit such as £2000 in respect of each illness or accident;

Death - a lump sum is paid if your horse dies as a result of an illness or accident or is slaughtered on humane grounds. The amount will be either the price you paid for the horse or its market value, whichever is less;

Permanent loss of use - if your horse becomes permanently incapable of performing the activity for which it was insured, you will receive the sum insured or the market value;

Loss by theft or straying;

Theft of saddles, bridles and other riding tack. Cover may also include loss by fire or accidental damage;

Third party liability cover of up to £2m. This cover is your liability for any personal injury or damage caused by your horse;

Personal accident benefits should you be injured while riding or handling a horse. A lump sum is paid if you are permanently disabled within 12 months of the accident and unable to work in any occupation.

Some policies also pay a weekly amount if you need to hire a replacement horse. The cost of any dental treatment which you may need following a riding accident may also be covered.

Cost

Premiums are based on the value of the horse or pony with a minimum sum insured (usually around £750).

The insurance company will want details of any past or present diseases or injuries. A vets certificate may be required depending on your horse's previous claims history, the level of cover you need, and the value of your horse.

Exclusions

Common exclusions include:

Slaughter of your horse without the insurance company's consent or death outside the British Isles or during transit by sea or air;

Vets fees for mares in foal and preventative inoculations;

Theft of riding tack while at a commercial riding establishment;

Damage to fences and growing crops while your horse is being ridden.

Usually, you have to pay the first part of each and every claim. This is known as an excess and the amount will be stated in your policy.

Where to buy Pet Insurance

You can buy a pet insurance policy through an insurance broker, other intermediary, or direct from one of the specialist insurers who offer this class of insurance.

Local veterinary surgeries usually have displays of leaflets which give displays of information and advice on various insurance schemes. If you belong to an animal owners club they may also be able to help.

This guide explains the main points about pet insurance. Please bear in mind that policies differ widely in the cover they provide, in their terms and conditions, and in their monetary limits. For full information ask your insurance company or insurance intermediary.

Further Information

This information sheet is one of a series, covering all aspects of insurance, published by the Association of British Insurers.