Notice period for horse insurance upon sale

The sale of a horse is emotional and complex. To ensure horse insurance does not become a stumbling block, you need to know the legal deadlines and rules. We show you how to make the transition smooth.

Transfer of the contract instead of termination: understanding Section 95 VVG

If you sell your horse, the insurance does not end; instead, it transfers to the buyer by law. This provision can be found in Section 95 of the Insurance Contract Act (VVG). The buyer assumes your existing rights and obligations under the insurance contract. This automatic transfer protects the new owner from an immediate gap in cover from day one. For you as the seller, this means that you cannot cancel the contract yourself. The policy continues seamlessly until one of the parties takes action. A comprehensive horse insurance offers protection that the buyer may appreciate. This legal basis creates clarity for the roughly 1.3 million horses in Germany. The next step concerns the right to cancel, which now lies with the buyer and the insurer.

The One-Month Window: Special Right of Cancellation for Buyers and Insurers

After the transfer of ownership, both the buyer and the insurance company have a special right of cancellation. This right is enshrined in Section 96 of the VVG and is subject to a strict deadline. Both parties can terminate the contract within one month. The period for the buyer begins as soon as they become aware of the existence of the insurance policy. For example: the sale takes place on 1 May, but the buyer only learns of the policy on 15 May. Their cancellation period therefore runs until 15 June. The insurer must also cancel within one month of becoming aware of the sale. Missing this deadline by just 30 days results in the contract continuing until the next regular cancellation date. A planned insurance switch therefore requires swift action. This deadline rule ensures a prompt decision and prevents months of uncertainty.

The Seller’s Role: Information Obligations and Liability Risks

Although you, as the seller, cannot cancel, you do have a crucial task: promptly reporting the sale to your insurer. This notification should be made in writing and include the buyer’s details. If you fail to fulfil this obligation, you risk joint liability for the insurance premium. Specifically, this means: the insurer can claim the premium for the current period from both you and the buyer. To avoid this, you should follow these three steps:

• Inform your insurer in writing about the sale, ideally within three working days.
• Provide the full name and address of the new owner.
• Request written confirmation of receipt so that you have proof.

This proactive communication protects you from financial disadvantages and ensures a smooth transition. It also lays the foundation for the buyer’s decision to keep or cancel the policy.

Buyer's perspective: take over the policy or take out a new one?

The new horse owner faces a choice: take over the existing policy or exercise their special right of cancellation. Taking it over can make sense if the terms of the old horse owner's liability insurance are good. This saves a renewed health check, which can mean an advantage of several hundred euros for older animals with pre-existing conditions. Cancellation is advisable if the market offers better or more affordable options. A modern tariff can often provide ten to 15 percent more cover at the same price. The decision depends on several factors:

• Contribution amount: Is the current premium competitive compared with new policies?
• Scope of cover: Does the policy cover all the new owner's needs, for example riding-share arrangements?
• Health status: Could pre-existing conditions make taking out a new policy more difficult or more expensive?
• Excess: Does the agreed excess suit the buyer's risk appetite?

Analysing these four points helps the buyer make the right economic decision within the one-month period. Next, we look at a detail that is often overlooked: premium payment during the transition period.

Expert tip: Who pays the premium after the sale?

A common point of contention is who pays the premium for the period after the sale until cancellation. The law clearly regulates this in Section 95(2) VVG: seller and buyer are jointly and severally liable. This means the insurer can choose from whom it claims the money. In practice, it will usually pursue the original contractual partner, i.e. the seller. You should therefore include a clause in the purchase agreement that governs the assumption of the premium from the day of handover. Such an agreement protects you from an unexpected bill of up to 150 euros for a quarter. Without such a provision, you remain potentially liable to pay at least one monthly premium. This clear contractual arrangement is an important building block for a fair sales process.

Liability insurance vs. surgery insurance: Are there differences when cancelling?

The statutory rules on transfer and termination apply to non-life insurance, which includes pet insurance. There is therefore, in principle, no difference between a horse liability insurance policy and a horse surgery insurance policy. In both types of contract, the policy is transferred to the buyer, and both parties have the right to a one-month special termination notice. In practice, some insurers try to pressure the buyer into taking out a new contract with a fresh health check for surgery or health insurance. Legally, however, the transfer of the existing contract is the basis. As the buyer, insist on your right to take over the old contract on the existing terms if this is advantageous for you. A good horse health insurance policy without new waiting periods can be worth more than 500 euros. Knowing this legal position significantly strengthens your negotiating position.