Understanding insurance coverage is important. No matter what kind of insurance you’re dealing with it’s best to know the scope of your policy. Whether it’s health, auto, homeowners or others, it pays to know what’s what within your insurance plan.
When dealing with specialty insurance you’ll need to pay extra close attention to the details. Read on to better understand the world of specialty insurance.
What is Specialty Insurance?
Specialty insurance cover things like expensive and rare items. You can even have potential events covered. These events include sports, leisure activities, and other entertainment.
You can also get travel insurance, coverage for ATVs, and antiques. Flood insurance, medicare supplements, and pet insurance are also considered specialties.
Specialty insurance is more common than you might think and plays a significant part in global revenue.
Why Do I Need It?
You need specialty insurance if you have a boat, RV, ATV, or classic car. If you’re in an area that’s prone to flooding, you should get flood insurance. Exotic cars that are driven less than 5,000 miles per year usually need specialty car insurance.
Most insurance companies impose extra restrictions on these cars. Restrictions such as no one under 25 can operate the vehicle among others.
Some areas require you to have flood insurance. They are typically zoned out and oftentimes you need it when you buy the house.
Perhaps you live in a region where hurricanes are prominent? You’ll definitely want to have flood insurance. Do you have a vintage RV? Specialty insurance is something that you need.
ATVs, dirt bikes, and motorcycles also require specialty insurance.
The features of your specialty insurance will depend on the carrier and type of insurance you need. For instance with travel insurance, you are usually covered for cancellations and doctor visits while abroad.
If you have an exotic bird or pet you’ll need the added feature of exotic pet insurance to your regular pet insurance.
Things to Consider
Some important things to consider when you are shopping for specialty insurance are:
- What is the scope of the policy?
- What are the premiums?
- What’s the deductible?
- What are the exemptions or provisions?
- Do I truly need it?
Once you’ve answered these questions you’re ready to make a choice. You should call around and get a few different estimates if possible. Also, consider taking a higher deductible to lower your monthly premium.
Another thing to remember is to avoid any redundant coverage. Make sure you’re not paying for added insurance if you’re already covered with another plan.
Special attention needs to be given to those who collect cars. This kind of specialty insurance has several different categories.
A collectible car is between 15 and 19 years old. A classic car is a car that is between 20 and 24 years old. An antique is more than 25 years old.
A custom vehicle and or street rod is one that was made in 1949 and beyond that’s had cosmetic or mechanical modifications.
There is also the exotic car category which is a vehicle that’s over 15 years old and is believed to have a rising resale value. There are also “kit” autos that are built with a certain package in mind.
Companies may have different variations of the above-mentioned categories and they determine what the guidelines are based on past experience with these items.
What Are the Benefits?
When it comes to insuring collector cars you want a company that understands the unique qualities of your vehicle.
A good specialty insurance company will also realize that if repairs need to be done with these cars they need original parts. This helps retain premium value.
A good specialty insurance firm is better equipped to handle these requirements than a regular insurance company.
Also, if you try to ensure your collectible car with standard insurance it will cost you nearly five times more than if you went with a specialty plan. You want a company that has experience and knowledge about collectible cars.
There are some new industry’s where risk protection is needed. Industry’s such as the cannabis field. Also, cyber/technology needs insurance coverage these days. Another market is green energy.
Many insurance companies have started to branch out into these fields over the past couple of years.
The cannabis industry is still fairly new. Although it’s been legal in many states for a few years or more, we are still learning a lot about it.
Plus, cannabis companies are still navigating the waters with new laws being invoked or current laws being changed. They need protection from someone who knows the ins and outs. They need a specialty insurance company that has their back.
Since cannabis laws can differ from region to region it’s really important to have an insurance company that knows what these provisions are in each region or zone.
Renewable or green energy is another market that’s considered an emerging risk. Like cannabis, green energy laws or provisions are constantly changing.
We are still in the beginning stages of this industry, although it’s been around for quite some time.
Since there’s still uncertainty with new renewable technologies, challenges with ownership, and financing; this industry can be risky for investors and insurers.
Finding a company that has experience insuring renewable energy sources is key.
Cyber/technology is another market with emerging risks. Cybercrime happens every day. Small businesses and huge corporations alike are getting hit by cybercriminals and most insurance companies don’t know how to handle it.
Some companies are only paying out 25% of claims on cybercrimes. Since the technology industry is rapidly changing an insurance plan with the right tools in place is needed.
Aligning yourself with a specialty insurance company that is up to date on the ever-changing cyber world can save your business.
Now that you understand what specialty insurance is and why you may need it, you can choose the best firm for your needs. You can also understand which policies you need and which you don’t.
Using these tips will ensure you and you’re business is protected and ready for the future. Click here to learn more.