Since the owner's estimate is not always reliable, insurers look for some form of objective data to help them determine the actual cash value of a horse. This could be the price paid for the horse at auction, or the estimated value of the horse based on its original value plus the added value of its training, produce, or show record. The services of an equine appraiser are often used to arrive at an objective value for an individual horse. An equine appraiser does not have to be licensed, but he should be well-informed about horses and he should be conversant with the current market. Some policies specify that the horse's value be determined at the time of death - by the appraiser, if the owner can't prove the horse's value.
Some policies require that the owner prove the value of the horse every quarter.
It is possible to insure a horse for more than its worth, but it is becoming more difficult to do this, because that worth is generally based on the purchase price. If an owner believes that his horse is worth more than the purchase price, he will need to produce evidence of increased value based on training, breeding records, show records, and appraisals. Then the insurance company must agree that the horse's value has increased to a specific amount. A homebred horse is generally insured to twice the value of the stud fee. One of the best ways to avoid this situation from the beginning is for the company to have knowledgeable agents who can help horse-owners purchase appropriate coverage for their animals.