There are no local HMOs for Fido. Pet policies are a form of indemnity insurance: You choose the veterinarian and pay for treatment. The insurer reimburses a portion of the bill.

Policy basics:

Costs: Most policies are annual, and the price often rises with the age of the pet. There may be a discount or surcharge depending on the number of past claims.

Benefits: There usually is a deductible for each incident or chronic condition. Payout amounts vary by plan: Veterinary Pet Insurance Co.’s “Superior Plan,” for example, pays 90 percent of what it says is the average full veterinary charge nationwide, after a $50 deductible, up to $14,000 per policy year. The “Standard Plan” pays 90 percent of what it says is about three-quarters of the average charge, up to $9,000.

Exclusions: Most insurers exclude conditions that existed before the first policy was purchased. Many also exclude elective procedures, hereditary conditions and treatment for parasites. (PetCare Pet Insurance Programs includes hereditary conditions.)

Endorsements: Coverage for routine care, such as vaccinations, and deworming may be offered as an add-on. (PetCare does not have this option.)

Exotics: Birds, snakes and other pets may be covered under a separate policy.