Most of us are already quite familiar with the basic types of insurance that are available on the market today. We all have homeowner’s insurance, car insurance and other basic indemnities and believe that we’ve safeguarded ourselves against all significant risks and threats to life and property. Right? Wrong!
In recent years, insurance policies have expanded to cover virtually anything that you can possibly own (and lose) and any risk that you might find yourself exposed to. While most of us will never need to take out an insurance policy against risks as absurd as alien abduction and runaway brides, there are certain insurance products that we usually ignore but can be really useful to mitigate certain serious risks.
Here is a list of five such unorthodox insurance products that can end up proving very effective in the long run.
#1. Speciality Tools and Body Parts
Most of you must have heard about body part insurance before. However, the majority of people think that it is a gimmick only meant for celebrities. Nothing could be further from the truth. If you are reliant on some of your body parts to earn your livelihood, perhaps in the capacity of a performer, artist, musician, minor athlete or any other service provider, then this type of insurance is a must have for you. Your body is always exposed to the risk of some serious damage in the event of an accident that could jeopardise your livelihood and earnings. Hence, getting your vital body parts insured is an option that you should really consider.
Similarly, if you need to work with speciality tools in your job, any damage to these tools could prove detrimental to yours and your family’s income. Hence insuring these is a sensible option to ensure that you are not left in sudden financial distress because of an unfortunate accident.
#2. Pet Insurance
In many households pets are just as important as any other family member, and can require significant medical expenditure. According to some studies, pets account for a considerable portion of the spending of those families that have them. Even the most basic and very common medical treatment or procedure on your pet can cost you hundreds of pounds. The cost can run into the thousands for serious and sophisticated procedures. Hence, taking out pet insurance isn’t a bad idea. These insurance policies can cover anything, from hospitalisation and accidents to lab tests and vaccinations and reduce your costs by over 80%. Many insurance providers offer significant discounts if you get more than one pet insured.
#3. Identity Theft
Chances of identity theft are low if you only make payments using cash. However, there are many situations in which paying by cash is just not feasible at all; you might need to make a payment while shopping online or while you are short on cash in a restaurant/shopping mall. Using a credit card, in such cases, is the viable option. However, along with the convenience that credit cards offer also comes the risk of your credit card information (number, pin) getting compromised. To minimise such a risk, you should consider investing in an identity theft insurance policy. This policy may cost you a couple of hundred pounds, but it brings with it the peace of mind and the sense of security that you’ll get whenever you next engage in any online transaction.
#4. Jewellery, Artwork and Expensive Equipment
Many renter’s or homeowner’s insurance policies cover artwork and jewellery. However, most of these provide only partial insurance cover. To ensure that your expensive items are effectively insured, you should get your artwork and jewellery appraised. If their prices greatly exceed your existing insurance cover, then you should consider an additional separate policy to completely insure them.
#5. Electric Bikes
Some people just love to ride and go as far as purchasing expensive electric bikes to fulfil their passion. Vehicles and items such as these are outside the scope of any traditional and basic insurance schemes and require you to purchase a separate policy to get such products insured.