Choose a knowledgeable insurance agent with a reputable company that understands horses and the horse industry.

Everyone is feeling the effects of the struggling economy, and many of us are trying to trim expenses. One place you might look to trim–or cut entirely–is insurance. It is one of those complicated, often misunderstood topics that most people would prefer to avoid. Does it make sense to trim or cut it out? That depends upon your ability to assume risk and pay out of your pocket if something untoward happens. A solid understanding of how insurance relates to you as a horse owner will help you make better decisions about your insurance needs.

What is Insurance? describes insurance as "a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company, or other entity in the case of unexpected loss."

Basically, you pay a premium to an insurance company in case something happens that's too expensive for you to handle. The company, of course, is betting that the odds are in their favor and that nothing will happen.

Sounds simple, right? Not exactly.

There is a host of insurance options available, and insurance is definitely a case in which you need to understand the fine print. Rarely are policies "cookie-cutter," and you must customize them to cover your unique situation.

Insurance is all about what is covered and what is not. Insurers who cater specifically to horse-owning clients are going to know what risk