Appraisal and Valuation in the Equestrian World
From the earliest days of recorded history man has placed value on horses. In previous centuries, they were valued for their use in agriculture and war and today they are valued primarily for their popularity as pets and use in sports. Depending on their pedigree and history, your horse can be worth “big money” and it is essential to get it appraised and valued for insurance and legal purposes.
Among the instances where valuations become essential, are claims arising out of theft, injury and death of the horse. In some countries, if the valuation shows that the horse was worth more than the compensation paid by the insurer, you can discount the loss against your taxes. On the more positive side, should you decide to donate a horse to a riding school for deprived children or some other worthy charity, an appraisal is also usually required by tax authorities to determine the value of the donation.
It is important to note, that there are also several types of valuations. For example, if you want to sell the horse you will want to know its market value, and any potential buyers will be encouraged by a valuation certificate indicating that you are charging a fair price. Besides this market value, you can also ask appraisers to calculate a replacement value, or even a reproduction value for breeding purposes.
The amounts realized in horse sales provide a good basis for making this valuation, but there are a number of other points that also enter into the equation. Horses with a good certificate of pedigree, a successful sporting record, and attractive appearance, are clearly going to be valued more highly. Around the world, various professional organizations oversee the appraisal and valuation business, for example, the United States has an American Society of Equine Appraisers.
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