Insurance Tips > What is Specialty Insurance?
Most insurance companies provide policies that fit a broad segment of the population. A typical homeowner or auto policy tends to be a reasonable fit for the average person because the home or auto is similar to what everyone else in the neighborhood owns. These kinds of polices are intended for people with comparable circumstances. This part of the industry is called the standard market.
But, what do you do if that kind of policy does not work for you?
Specialty insurance focuses on customers who need something different or better.
Some examples will explain what we mean:
- Your house may be in great shape, but because of it is too far from a fire station for the underwriting requirements of a standard carrier, it may not offer you coverage.
- You may have an older home that is near a new development. A standard carrier takes the valuation of those new homes into account when it prices coverage for a community. The result is that you may be required to buy a higher limit than is needed for your home, making the policy too expensive.
- A standard auto policy assumes that you drive your car or truck frequently, which establishes a statistical likelihood of an accident. The carrier prices the policy accordingly. But if you have a collector car, you drive it on a much more limited basis. With a specialty policy, your policy cost is actually lower. In addition, we agree on the value of your car and insure it for that amount. A standard carrier will value it based on a blue book-type formula.
- You just bought a new boat. You can add an endorsement to your home or auto policy and get some basic coverage. But it will not offer you important options like replacement cost valuation or emergency assistance. There also may be limits on your liability coverage.
Specialty insurance takes into account your circumstances and insurance needs. It gives you more flexible coverage and more options.