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Weather
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If it is cold outside and your horse is shivering, this is an obvious situation in which a blanket would prove beneficial, but horse blankets are not just for cold weather. They also protect horses from rain, snow and muddy conditions. In addition, they are useful in areas where there is manure or excessive dust. Even in warmer weather, very light blankets or sheets may keep insects off the horse's body.
Age
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As a horse begins to get older, it may have trouble taking in enough calories to keep its body sufficiently warm. This could occur because older horses have dental or other problems that make chewing difficult or simply be due to the natural aging process. No matter what the underlying cause, a blanket is a good way to help horses stay warm while conserving strength and energy. Very young, small horses may benefit from blanketing as well.
Illness
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Like aging horses, those who are ill or who have just begun to recover from illness may have trouble maintaining body heat. Sometimes, this is a symptom of the sickness. Other times, it may be because the illness has caused the horse to lose weight and, therefore, some of its insulating body fat. A horse blanket may be a good option to keep the horse toasty until it can better regulate its own body temperature.
Insufficient Coat
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Some breeds of horses have thinner coats than others and are not able to stay as naturally warm as their thicker-coated counterparts. Additionally, some owners clip their horses for the show ring, eliminating some of that naturally insulating coat. In these cases, horses generally benefit from using a horse blanket, at least during cold nights or in wet weather, so that they do not become chilled.
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When to Blanket Horses
To some people, it may seem strange to give an animal a blanket. After all, most animals already have coats to protect them from cold weather. While this is true, some animals, such as horses, may require a little extra protection now and then. Horse blankets cover equines from shoulder to tail and can come in handy in a variety of situations, including all types of inclement weather. (Ref. 1)