The facts on specialty insurance
You might have heard the term before—”specialty insurance”—and thought it wasn’t for someone like you. After all, it sounds more like the insurance athletes buy to cover lost income in case of a career-ending injury, or coverage that billionaires get for kidnapping or extortion situations.
Yes, those policies really exist. But when you hear Safeco or your independent agent talk about “specialty,” it means something quite different: It means protecting your labors of love and lifelong passions (even if you’re not a billionaire).
Do you have a motorcycle? A boat? What about a classic car or an RV? Maybe you own a home that you rent out.
In all of those instances, you need the additional protection of specialty insurance.
Why do I need it?
Unique situations and specialized items, such as motorcycles and boats, need specialized protection that go beyond what standard auto and homeowners policies can provide. For example, if you are a landlord and you decide to evict your renters, you could be sued. A homeowners policy doesn’t cover that—but a Landlord Protection policy does.
If you have a boat, your state might not require you to have insurance for it. But homeowners policies often only provide limited coverage (if any), and they usually don’t cover injuries or accidents that happen on the water. Watercraft coverage protects you against theft, liability and more.
Perhaps the most common specialty coverage is umbrella, which provides an extra layer of protection beyond your home and auto policies. Say you’re responsible for a crash with multiple injuries. Your auto liability limits likely aren’t enough to cover all of those expenses, which means you could be on the hook for the additional costs. An umbrella policy is designed to kick in at that point, paying the amount above your other policy’s limits.