Horse sale and insurance: using the notice period correctly when selling
13/10/2025
3
Minutes
Katrin Straub
Managing Director at nextsure
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.
The topic in brief and concise terms
After the sale of a horse, the insurance automatically transfers to the buyer (§ 95 VVG); it does not end.
The buyer and the insurer have a special right to terminate within one month of becoming aware of it.
The seller can no longer cancel after the sale, but must notify the insurer of the sale immediately.
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.
More useful links
The official platform Gesetze im Internet provides the full text of Section 96 of the Insurance Contract Act (VVG) of 2008, which governs the termination of insurance contracts.
The Verbraucherzentrale explains in detail when and how an insurance contract can be terminated and which steps need to be observed.
The Deutsche Reiterliche Vereinigung (FN) provides current figures and facts on the topic of horses in Germany.
Statista offers detailed statistics on personal horse ownership in Germany, based on survey data.
The Federal Ministry of Food and Agriculture (BMEL) provides official statistics on livestock in Germany, including current data on horses.
Finanztip explains various special termination rights that may also be relevant in the context of insurance contracts and provides consumers with important information.
FAQ
Can I, as the seller, cancel the horse insurance?
No, after the sale of the horse, the right to cancel transfers to the buyer. Your only task is to notify the insurer of the sale. Only the buyer or the insurer can terminate the policy within the one-month period.
What happens if the buyer misses the notice period?
If the buyer misses the one-month notice period, the insurance contract continues to run in their name. They can then only terminate it properly at the end of the contract term, which often means being tied in for up to a year.
Does the special right to cancel also apply to horse surgery insurance?
Yes, the provisions of sections 95 and 96 of the VVG apply to all animal insurance policies that are classified as property insurance. This includes horse liability insurance, horse surgery insurance and horse health insurance.
Who pays the insurance if the horse is sold in the middle of the month?
By law, seller and buyer are jointly and severally liable for the premium for the current insurance period. It is therefore highly advisable to stipulate clearly in the purchase agreement who bears the costs from the handover date.
Does the buyer have to undergo a new health assessment?
If the buyer takes over the existing contract, no new health check is required. This is a major advantage for older horses or animals with pre-existing conditions. A health check is only required when taking out a new policy.
How do I provide proof of the sale to the insurer?
The best way to prove the sale is with a copy of the purchase contract. This should clearly show the buyer's name, the date of sale and the horse's details. A written notice containing this information is also sufficient.
