Unusual Insurance Policies

Friday, October 12, 2012

Car, homeowner’s, renter’s, life, health – we all know the standard types of insurance policies, but what about some of the more obscure ones? Consumers can purchase insurance to cover almost any need; in fact, some insurance companies are known for their highly customized policies.

Here are some unusual insurance policies you might choose to explore at some stage in your life:

Longevity insurance

We all hope that our retirement savings will last as long as we do. In reality, though, since many people live well into their 80s and 90s, sometimes the money runs out. That’s where longevity insurance comes in. People concerned about outliving their assets can purchase this type of insurance (an annuity contract) to provide guaranteed income for life once they reach a specified age (usually 85).

Antiques insurance

Homeowner’s and renter’s insurance policies typically exclude coverage of antiques due to their high value. An antiques policy covers replacement or restoration (up to policy limits) in the event antiques are damaged or stolen.

Pet insurance

Pet insurance protects pet owners from the potentially high costs of veterinary care. It typically works like group health benefits do for humans, covering a certain percentage of expenses depending on the policy and type of claim.

Long-term care insurance

Long-term care insurance covers costs associated with chronic illness, disability or health needs (often related to growing older) that go beyond the scope of standard health insurance coverage. It protects an individual when he/she is unable to take care of him/herself by providing funding for care at home or at a long-term care facility.

Wedding insurance

This type of insurance protects the hosts’ investment in the wedding day in case unforeseen circumstances necessitate cancellation or postponement. Liability insurance may be purchased specifically for the event as well, protecting the hosts from potential lawsuits arising from the activities of the day.

Specialized business insurance

Certain industries face unique risks and circumstances that must be taken into account as policies are written. For example, a dry cleaner faces liabilities and concerns that are quite different from those of a car dealership. Likewise, a supplier to the oil and gas industry has different insurance needs from a photographer. Insurance companies accommodate these varying needs through custom-tailored policies.

Celebrity insurance

Want to insure like the celebrities do? History is filled with stories of million-dollar-plus legs, hands, smiles, vocal cords – even hair. So if your living depends on the health and well-being of a specific body part, you might want to talk with an insurance agent about coverage possibilities.