What Are Specialty Insurance Policies?

Summary: There are many types of insurance available. Home owner's insurance, automobile insurance, life insurance, to name just three, but there are also specialty insurance policies available that some consumers may find very useful. This article will examine some of the more common types of specialty insurance. In simple terms, specialty insurance is exactly what it sounds like. It is insurance that is purchased for items that are special or unique. It is also used to provide pr...

There are many types of insurance available. Home owner's insurance, automobile insurance, life insurance, to name just three, but there are also specialty insurance policies available that some consumers may find very useful. This article will examine some of the more common types of specialty insurance. In simple terms, specialty insurance is exactly what it sounds like. It is insurance that is purchased for items that are special or unique. It is also used to provide protection for items that might otherwise be protected under another policy but are not protected because of some unusual aspect. For example, a diamond necklace might be protected under the home owner's insurance policy but what if the necklace is with you while you are traveling and it is stolen or broken? A specialty insurance policy on the necklace (and only on the necklace) can provide the protection that you need for that item no matter where you are. Specialty insurance policies are not available with all insurance carriers and that means that you may have to do some research in order to find the best carrier for the item that you wish to insure. Lloyd's of London is an example of a famous specialty insurance carrier who (it is reputed) will insure anything as long as the insured is willing to pay the price. Other, less famous, carriers are available, but you will probably have to search for them. This can be done online, if you wish. Another way to find reputable insurance carriers is to ask the people from which you bought the item. In the necklace example above, you might want to ask the jeweler with whom he does business with. Chances are good these vendors will have some contacts that you can explore. Specialty items that you might want to consider insuring include such things as: exotic animals, artwork, coin collections, antique watches or other time pieces, collectable automobiles, various pieces of jewelry, historical documents, antique furniture pieces, rare books, and any other unique item or items that you may have. One reason many consumers and collectors use specialty insurance policies is when the item insured is worth more than the location where it is stored. For example, assume you have a home owner's insurance policy that covers one million dollars of damages. Let's further assume that you have a famous piece of art that has been appraised at three million dollars. The artwork could be covered under the home owner's insurance but there would be a substantial problem should the home burn down and the artwork is lost in the fire. The one million dollars recovered through the insurance would need to be used to replace the home and the furnishings, and would not come close to being enough to pay for the lost art. By having a separate policy on the artwork, a policy that better reflects the high value of the piece, the home owner is better able to recoup his or her losses. Specialty insurance is not as expensive as many people believe it to be. When the amount of loss is considered, it can actually be a great value in terms of replacement as well as in terms of emotional comfort. Knowing your unique items are insured can go a long way in relieving stress.