Insurance is one of the biggest industries in the USA. It includes a variety of forms of commercial and private insurances, where leading ones are: health and life insurance, homeowner’s insurance and car insurance. However, there are plenty of other types people are not aware of. These policies are specific and can home in handy in times of hardship. For example, did you know there is special divorce insurance? In comes into action if a happily married couple decides to divorce. We bet there are plenty of other things related to insurance you haven’t heard about!
Here is the list of twelve types of insurance you should know about in case you care enough about your well-being and safe future.
This type of insurance is often called income protection insurance and it protects the policyholder from losing the income in case of becoming temporarily disabled. The worker, who cannot work for a considerable period of time, receives a coverage which is usually about 80% of his salary.
Short-term disability insurance covers the illness-related gap in earning money for up to half a year. Long-term insurance may cover the part of the worker’s salary the rest of the policyholder’s life.
Disability insurance is often a case of arguments between insurers and doctors who claim the policyholder is actually disabled.
Professional Indemnity Insurance
It is also known as Professional Liability Insurance and it is designed to protect the company from expenses related to professional mistakes made by workers. Professional Indemnity Insurance is vital for businesses related to a medical sphere and social services, where inadequate advice or occasional negligence of a worker can cause a physical or moral harm to a client.
This policy covers not only the payment the business makes to a third party to compensate the harm but also all legal expenses related to the particular case. This insurance doesn’t cover a mistake made by a worker intentionally with the purpose to harm the reputation of the Company.
Pet Insurance is not so popular and well-known for obvious reasons, while this policy can save the pet owner significant amount of money in terms or veterinary expenses. Pet Insurance is always a customized one and a policyholder may create the as big list of insurance cases as he wishes. Reasonably, the cost of the policy depends on the number of cases to cover. Types of pet surgery are discussed and agreed under specific and customized terms and premiums. Pet Insurance does not cover “pet beauty” procedures like grooming or other.
This type of rural insurance is purposed to protect farm owners and their income which depends on cattle and livestock. The policy protects an owner from the loss of the livestock resulted from accidental death or mortal illness. The policy does not come into action if the loss results from the owner’s negligence or easily preventable threat. The list of insurable perils (the causes) related to a livestock death could be customized and specified in each separate case (destructions, natural factors, epidemics, etc.).
Social Insurance stands out of a crowd due to being a government-sponsored program for the certain category of people. Through social security, the government provides protection to elderly, disabled, poor people who cannot afford any other form of social and financial security. In order to become protected under the social security, the person must match several strict requirements.
Social security is realized in two forms of protection: financial compensation to poor people (and unemployment ones) and medical care to disabled, elderly, and other people in need.
Purchase insurance is pretty specific one and is designed to help with the problems related to difficulties with the purchased product (service). Insurance may cover any product and a producer’s claims about its product. It could be mobile devices, appliances, healthcare products, etc. In a case the product doesn’t perform in a way it was claimed by the producer or the product doesn’t match the characteristics promised, the policyholder gets full compensation granted by the Insurer, while the Insurer claims the compensation from the producer (through legal case).
This type of insurance covers boats and watercraft which were damaged due to occasions/accidents with the third parties. The list of occasions can vary and could be agreed and customized with the policyholder. The policy covers expenses for wreckage removing and repair works after accidents.
There a tons of nuances in watercraft insurance so one should learn the policy thoroughly before sign an Agreement. For example, the insurance doesn’t cover expenses related to injuries caused by the boat’s operation (even in a case the boat’s malfunction resulted from an accident which is covered by the policy).
Kidnap and Ransom Insurance
K&R Insurance is specially developed with the purpose to provide protection to individuals or businesses (corporations) who live, work and operate in areas with significant risk for life and well-being. This kind of insurance helps in a variety of circumstances related to security threats.
The policy normally covers such perils as hijacking, kidnapping, distortion and covers expenses related to all consequences of it.
This insurance is purposed to help cover risks of individuals’ property damage and theft. Those individuals who work and live out of their home country and have no usual level of protection may get an Expatriate Insurance which covers the extensive list of perils.
This type of insurance may invoke a question why it is actually needed in a form of a separate policy if there is a homeowner’s insurance? The thing is the standard homeowner’s insurance does not cover boilers’ replacement and repair and threats related to boiler’s operation, while millions of people’s comfort depends exactly on boiler’s functioning.
Boiler insurance can include the boiler solely, or the boiler’s system of pumps or the whole heating system of the house (including the expenses for temporary boiler’s replacement with another heating appliances while the boiler is on the process of repair).
Interest rate Insurance
This is one of the most interesting and potentially helpful types of policies which protects the holder of the loan (the borrower) from financial loss related to increased interest rate. It is especially handful option for serious loans like mortgage loans (including for commercial Real Estate), where even the slightest interest rate growth leads to significant growth of monthly payments the borrower has to make.