How Specialty Insurance Works

Specialty insurance is a type of policy purchased from a specialty insurer specifically for unique items of high value. It can also be used for an item already protected by another policy, but due to an unusual circumstance, it will not be covered.

Understanding When an Unusual Circumstance May Apply

As an example, you may have a piece of jewelry that as long you keep at home is covered by your homeowner’s policy. But, if you decide to travel with it, it’s then no longer covered. So that’s when specialty insurance comes in.

Another Reason to Use This Kind of Insurance

You may also want to consider using a specialty insurer if the value of an item is higher than the location where it’s stored. For instance, your homeowner’s policy covers one million dollars in damages, but your classic automobile is worth two million dollars. So if there’s a fire in the home and it was destroyed in the garage, then the homeowner’s policy will not only need to cover everything else but also the automobile, which would not even be close to its two million dollar value. This would be another reason to use specialty insurance.

However, specialty insurance is not available with all carriers. One of the best ways to find a specialty insurer is by researching online.