Part 2 by Elizabeth Clarke Property coverage is a little easier to figure. The goal is to repair or replace the covered property. For less critical assets, determining whether and for how much to insure depends on your judgement of how much you need the asset at issue, how likely it is to be destroyed, whether you could afford to replace it, and your appetite for risk.
Horses are a good case in point.
While many of us think we cannot live without them, in fact we would survive without them, though many of us choose not to. Horses are fairly hazard prone and very vulnerable to things like serious colic, so the need to replace a favorite is not unlikely. The nature of the horse's activity and the environment in which he lives will factor into the likelihood of the need for replacement. The equivalent of the horse you spent years training can cost a good deal of money. If you need or want to be able to replace such a horse with an animal of equivalent quality and training, insuring for the horse's full value is probably a good decision, and you would also want to look at loss of use coverage.