Pet insurance is a form of insurance that pays, partly or in total, for veterinary treatment of the insured person's ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen. As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets' health care and standard of living than previously, the market for pet insurance has increased. Exclusions from Pet Insurance The following are some of the general exclusions from the pet insurance scheme: Intentional or malicious harm to the pet Injury or illness caused by neglect or inexperienced pet handling Loss or harm caused by war, foreign hostility, revolution, rebellion, military upheaval, and so on. Death from rabies, distemper, viral hepatitis, viral enteritis, leptospirosis, and other diseases Illness contracted prior to purchasing the policy. Spaying or neutering, vaccinations, microchipping, ear or teeth cleanings, annual checkups History The first pet insurance policy was written in 1890 in Sweden by Claes Virgin. Virgin was the founder of Länsförsäkrings Alliance, at that time he focused on horses and livestock. In 1947 the first pet insurance policy was sold in Britain. As of 2009, Britain had the second-highest level of pet insurance in the world (23%), behind only Sweden. According to the latest data available from the U.S. Department of Clinical Veterinary Science and the Pet Food Institute, only 0.7% of pets in the United States are covered by Pet Insurance. In 1982, the first pet insurance policy was sold in the United States, and issued to television's Lassie by Veterinary Pet Insurance (VPI). How policies work Pet insurance is a form of property insurance rather than health insurance. As such, pet insurance reimburses the owner after the pet has received care and the owner submits a claim to the insurance company. Pet insurance policies primarily cover dogs, cats and horses though more exotic species of animal can obtain coverage. UK policies may pay 100% of vets fees, but this is not always the case. It is common for UK pet insurance companies to discount their policies by offering customers the chance to pay an "excess", just as with motor insurance. Excess fees can range from £40 to £100. Policies in the United States and Canada either pay off a benefit schedule or pay a percentage of the vet costs (70-100%), after reaching a deductible,