What is specialty insurance? The answer is when you insure something special, something unique, something that your standard policies like auto, homeowners, etc., do not cover. These specials can be your business-related liability or personal that you have worked so hard to buy.
Let’s consider a few examples to bring the idea home. Say you have an heirloom your homeowners’ policy does not cover. You would need a collectibles policy for it. Or say you have a yacht that your auto policy won’t cover. You would need a boat policy for the same. This boat and collectibles policies are but examples of specialty insurance. Would you believe, currently there are more than 600 specialty coverages listed in the “The Insurance Marketplace” by Rough Notes? Changing times need innovative solutions, and specialty policies are just that.
Quirky as it might sound, but do you know there is a coverage called kidnap/ransom insurance? We hope that gives you an idea of what all it can cover.
Let’s discuss a few of the many specialty policies available.
Types Of Specialty Insurance Policies
#1: Classic Car Insurance
This policy protects those who pride themselves over their classic cars. You should consider this policy if you too have a car that is an antique, a collector’s item, or a car you have spent hours on restoration.
#2: Flood Insurance
Floods are the costliest of all-natural calamities. Even an inch of water can cost you losses amounting to $25,000. Thus, if you live in a flood-prone area, do consider buying this policy. And another important point to note here is that your car and property are both insured separately.
#3: ATV Insurance
All-Terrain Vehicle Insurance protects your 4×4 vehicle or any other ATV you ride. Be it a fun ride on your ranch or for plowing the fields, rest assured you are covered. You can also insure your ATV’s equipment.
#4: Boat Insurance
Many of us attribute our brightest moments to the time we spent on our boats and yachts sailing over the seas. A boat policy protects your pride possessions, the boats, sails, yachts, etc. It also insures commercial vehicles.
#5: Motorcycle Insurance
A Motorcycle policy saves the day by protecting your dear motorcycle from natural disasters and accidents.
#6: RV Insurance
Recreational vehicles policy insures vehicles like your caravan so that you can hit the road worry-less. Thus, camp and travel to your heart’s content.
#7: Travel Insurance
This policy has been very beneficial in the recent pandemic times. It covers your medical expenses while you are away from home and traveling. It also covers baggage theft and missed and canceled flights, etc. In simple words, it makes your bright days brighter.
#8: Wedding Insurance
Wedding day, the D-day, your most special day, deserves this specialty policy, the wedding policy. It covers the cost of re-planning the event in case any mishap occurs.
#9: Kidnap and Ransom Insurance
Say you are a business. You or your employees and their families are traveling overseas. If any kidnap for ransom occurs there, then this policy will reimburse the company. It is a good utility as bad times come unannounced.
#10: Cyber Liability Insurance
Cybercrimes are increasing by the hour. We store our credentials and card details over online portals. But what if they are compromised? This policy protects your customers and business from such data breaches.
#11: Umbrella Insurance
This is your umbrella that protects you from the rain of lawsuits. Confused? An umbrella policy is extended liability coverage that protects you from lawsuits. Whether your existing policy, auto, boat, homeowners, etc., umbrella policy picks up where your current liability coverage ends.
Say you are driving and cause a 10-car accident. Now you would need an umbrella policy to cover all the liability claims.
#12: Pet Insurance
It is not easy to care for pets. They might get sick or contract a fatal disease. A pet policy pays you for regular checkups at the veterinarian and reimburses you for the covered illnesses.
#13: Collectibles Insurance
Collectibles policy protects your collectibles like a valuable heirloom from your great-grandmother or your stamps collection. Whatever be your collectible, this policy will cover it.
#14: Jewelry Insurance
Much like the collectibles insurance, if you have a necklace as an heirloom, you can insure it under this policy. Also, your jewelry can be protected under this policy.
#15: Terrorism Insurance/TRIA
Terrorist attacks, whenever they occur, cause the loss of billions of dollars. It impacts the economy gravely. Thus, if any significant terrorist activity occurs, the federal government and the insurance companies can divide the costs according to a specific formula. This ensures the public’s safety and economy stays stable.
#16: Excess Casualty
Excess casualty is quite similar to an umbrella policy. Both the policies provide liability coverage when the existing policy is exhausted.
But there is one difference as well. While umbrella policy gives a liability extension for all your policies, excess casualty only gives extended coverage for one chosen policy.
Say you have auto, homeowners, and boat insurance. Now umbrella will help you when any of these policies’ liability coverage lacks. But excess casualty will help with any one of these.
Specialty Insurance Need Not Be Expensive!
Usually, people think that specialty insurance is expensive, but that is not true. After all, what is peace of mind when you have to break the bank for it?
In reality, obtaining a specialty policy is not that expensive. The actual cost will finally depend on your industry type, the amount of coverage, and the type of risks you have. It is always good to talk to an insurance agent, discuss your needs, and shop around until you secure a good deal.
Specialty insurance is a lifesaver for so many of us. Many risks that can ruin a person or business are mitigated due to these policies.
So, this was all, and we hope you found the information helpful. And if you have any doubts, questions, or suggestions, please drop them in below. We are all ears and reply ASAP!