To Loan or not to Loan
With the current recession, it can be an appealing prospect to loan a horse rather than purchasing outright. I have had my horse on loan for the last 3 years and is a perfect arrangement for my situation; the cost of keeping horses has risen considerably in the last few years, considering the recent hike in the cost of hay, feed and shoeing costs to name but a few.
Of course with loaning there are always cases and stories of when it goes wrong, but also many arrangements when putting a horse on loan is the perfect solution.
To prevent disagreements with loaning it is advisable that a contract or loan agreement is drawn up - this can then become invaluable to both parties. The agreement should be reasonable and fair, stating clearly what is expected from the loan.
When looking to get a horse on loan you should treat this in the same manner as if you were looking to purchase a horse, and to take into consideration some factors which may include:
* Is the horse or pony suitable for the purpose and capable activities intended to be used for? Consider the breed, size, age, ability, level of schooling
* You will also need to discuss with the owner what activities they will allow you to participate in, as the owner may have restrictions what you may and may not be allowed partake in.
* You would normally be responsible for the horses health and any vets fees incurred during the loan period, it is advisable to discuss and check with the owner whether the horse has any pre existing conditions as this would affect any cover with an insurance company, so ?, conformation defects or medical problems which could affect the horse?
* Ride and try the horse before agreeing to any contract, is the horse well behaved? Alternatively if the horse is quirky or has vices, to understand that you are fully aware of this beforehand and that the horse might need some work and training.
The majority of loan agreements do not include a monetary fee for the privilege but this should be confirmed, as well as the duration of the loan, and a cooling off period in the loan contract.
Be prepared that the horse owner may want to get references and 'vet' the potential carer; this is normal procedure and reassures the owner that this is the right home and move for the horse.
The standard loan agreement will usually state the individual loaning circumstances it is wise that the following would be included in the contract:
- * The horses value and amount of sum insured, this will protect both parties to is ensure that if the horse was to be put to sleep, or dies then there is an agreement for a monetary settlement
- * Agreed activities the horse can be used for, so both parties are clear what is allowed and activities stated in the agreement which the owner of the horse does not permit.
- * As well as vets fees to be covered the horse owner may require cover to be taken out for loss of use of the horse, if this section is requested then a vetting will need to be completed to qualify for this level of insurance.
- * Public liability is usually sensible to insure against to protect yourself in the case of a claim and usually very minimal in cost to add on.
- * Most loan agreements contain an itinerary this will list what tack and accessories are provided with the horse, again suitable tack cover can be beneficial to protect yourself against theft and damage.
