5 Weird Insurance Policies
Most consumers are familiar with the standard types of insurance policies, such as homeowner’s, auto, health, life and disability. These kinds of insurance policies are designed to protect your well-being, life and property in the event of an illness, accident or major disaster. While these types of policies are the norm, there are some less common forms of insurance available that range from unusual to just plain weird.
Body Part Insurance
If you rely on a specific body part, such as your hands, vocal cords or legs, to earn a living, body part insurance can help you to protect your livelihood. Lloyd’s of London is one of the top providers of body part insurance, particularly for celebrity clients. The agency first began underwriting body part insurance policies in the 1940’s and has insured a number of individuals in the entertainment industry. Among the most notable policies reportedly underwritten by the company are a $10 million policy covering Ugly Betty star America Ferrara’s smile and a $39 million policy covering Lord of the Dance star Michael Flatley’s legs.
While you don’t have to be a celebrity to purchase body part insurance, this type of coverage may not be affordable for the Average Joe. Body part insurance is typically sold through the surplus lines market, which specializes in underwriting oddball or high-risk policies. As such, the premiums for this type of coverage are significantly higher than those associated with other types of insurance.
Planning a wedding requires keen attention to detail to ensure that the big day goes off without a hitch. If you’re concerned about the potential for problems, you can purchase a wedding insurance policy to cover any unforeseen event. According to a 2012 CNBC report, wedding insurance policies have increased in popularity in recent years, with couples seeking coverage for everything from inclement weather to illness to military deployment. These types of policies also protect against losses resulting from issues with vendors or the venue.
Some companies also allow the individual or individuals who are financially responsible for the wedding to purchase “change of heart” coverage, which protects against financial losses if the bride or groom doesn’t show. While wedding insurance doesn’t protect against disaster after you say “I do,” it’s a good way to protect your investment before you tie the knot.
Alien Abduction Insurance
While the question of whether or not we’re alone in the universe has yet to be answered, some individuals aren’t taking any chances when it comes to the possibility of an encounter with an extraterrestrial life form. Alien abduction insurance coverage protects you in the event of an otherworldly experience. The London-based firm Goodfellow Rebecca Ingram Pearson has reportedly issued approximately 30,000 alien abduction policies, including insurance coverage purchased by the Heaven’s Gate cult, whose members purportedly believed in the existence of alien life. While this type of policy offers a substantial payout if you’re abducted by aliens, you or your beneficiaries have to be able to prove the abduction occurred, which may present a challenge to your claim.
Fantasy Sports Insurance
For some sports fans, fantasy leagues are simply an entertaining hobby but for others, they’re more than just a pastime. . If you spend serious time and money building the ultimate line-up, fantasy sports insurance can protect your investment. Fantasy sports insurance is designed to cover you in the event that one of the players on your roster suffers a real-life injury. The cost for fantasy league insurance is typically 10% of the coverage amount, plus a service fee. If something happens to one of your players, you can file a claim to recover lost service fees, league membership fees, subscription fees and other costs associated with building your fantasy sports team. Claims are typically paid within 30 days after the season ends. If you take your interest in fantasy sports seriously, this type of insurance may come in handy if one of your star players ends up on the bench.
If you’re planning a vacation to an exotic destination, you can purchase travel insurance to protect you in the event of illness, injury, theft or other disaster. If you’re going to any area that has a potentially turbulent social or political climate, you may also want to consider a separate policy for riot coverage. For example, in 2010 the government of Thailand offered tourists up to $10,000 in riot insurance coverage at no cost in an effort to attract more visitors to the country.
If you live in an area that is prone to riots or other public disturbances, you may also want to find out whether your homeowner’s or renter’s insurance covers you against these types of events. Riot insurance coverage has become increasingly popular in London, after riots there left numerous homes and businesses damaged in the summer of 2011.
Insurance is designed to help you prepare for the unexpected. For some people that may mean a health crisis or environmental disaster; for others, it may mean taking an involuntary ride into outer space. If you have insurance needs that don’t fit the traditional mold, chances are you can find a policy to protect against almost any unanticipated event, no matter how unusual it may seem.