Weird Types of Insurance Policies

The world is filled with all types of risks. From driving on a busy highway to walking around your house, statistically, there’s a margin of danger nearly everywhere. Fortunately, the insurance market is designed to offer consumers financial protection from these risks.

For many risks, all you need to do is find the right policy and make regular payments to avoid the major expenses that may arise from unexpected events, no matter how odd.

Weird Insurance Policies

Here are six weird insurance policies on the market today:

• Wedding Insurance
• Lottery Insurance
• Multiple Birth Insurance
• Body Part Insurance
• Alien Abduction Insurance
• Moving Insurance

Wedding Insurance

Out of all the “weird” insurance policies, perhaps wedding insurance is the most fathomable, particularly when the average cost of a wedding continues to rise. For couples who are beginning to build their financial future together, that’s a hefty burden, particularly if the vent doesn’t go as planned.

Despite deposits and contracts, photographers fail to show, dresses can be ruined, and venues can double-book. Other issues might include weather-related disasters, alcohol liability concerns, and guest injuries.

With wedding insurance, brides and grooms can protect their special day from blizzards and floods, as well as drunk photographers and, in some cases, “cold feet.” (However, many insurance companies exclude wedding-day jitters from the policy.)

Much like other types of insurance, the price you pay for wedding insurance depends on a variety of factors, like the location of your wedding, total guest count, whether you want liability insurance, and the total amount of coverage you want.

Couples who turn to top wedding insurance companies like Markel, Travelers Insurance, and WedSure can pay, on average, from $155 to $550 for basic coverage, with additional liability coverage costing around $185. Don’t be surprised if exotic animals or firearms send your insurance costs skyrocketing.

Not every policy is the same, so any couple considering insuring their wedding should read the agreement thoroughly.

Lottery Insurance

When it comes to winning the lottery, the odds aren’t in your favor. But if by some chance you are part of a winning office syndicate, your boss may certainly have the odds stacked against them — particularly if they’re expecting their employees to show up to work the next day. Lottery insurance protects against the cost of an employee suddenly quitting due to winning the lottery.

Though not widely available in the United States, business owners in the United Kingdom have a safety net should their employees hit the jackpot and quit their jobs.

Companies like Fielding’s Mann and Lloyd’s of London offer national lottery contingency policies for anywhere between $65 to $390, based on the total number of employees.

Multiple Birth Insurance

If you or your partner are pregnant, you may be excited to welcome a single bouncing bundle of joy into your lives. But what if you are expecting two or three babies, or even more?

If that’s the case, and you’re a parent in the United Kingdom, then you may be able to take advantage of Multiple Birth Insurance, which protects parents from the financial burden of having twins, triplets, and more.

How much does it cost to insure your double (or triple) bundle of joy? Marcus Hearn, one of the leading insurance companies providing this type of policy, typically charges between £84 (about $110 USD) and £210 ( about $275 USD) per policy, with payouts between £2,000 (about $2,600 USD) and £5,000 (about $6,556 USD), respectively.

Body Part Insurance

If your livelihood is based on a body part, then what would you do if you could no longer use it to earn your paycheck? That’s the difficult question many people face. For example, Bruce Springsteen once insured his voice for as much as $6 million, and David Beckham insured his legs for about $195 million.

Of course, valuable body parts aren’t limited to celebrities. A variety of professionals could face financial hardship if their main money-making appendage was damaged. For example, a surgeon who can no longer use their hands to operate or a chef who could no longer taste their creations could lose their livelihood.

You’ll have a hard time getting a body part policy from a major company like Geico or Nationwide. Instead, you’ll likely need to track down a specialty insurer like Lloyd’s of London.

Alien Abduction Insurance

The world is a dangerous place, and perhaps the universe is as well.

Alien Abduction Insurance covers post-abduction medical bills. A few companies do provide this unusual insurance, including the UFO Abduction Insurance Company, based in Altamont Springs, Florida, and the aforementioned Lloyd’s of London. If you want to protect yourself or a loved one from an unexpected alien abduction, you can secure a lifetime policy for $19.95 for $10 million in coverage.

Moving Insurance

When you move, you are more likely to think about which renters or homeowners insurance you need for your new home. But, you may be surprised to know that prior to being settled in your new home, there’s another type of insurance that you may want to consider: moving insurance.

Moving insurance can typically be purchased from a moving company. In return, the company provides a guarantee that any damaged or lost personal belongings will result in some form of compensation. This compensation can come in the form of a repaired item, replacement item, or a cash settlement.

Bottom Line

For many of us, the weird types of insurance above don’t necessarily merit the price we’d pay, even if the cost is small. But for some consumers, the peace of mind is worth it. Plus, if a snowstorm ruins your wedding, if your entire office wins the lottery, or if you are abducted by an alien, you may just find that one of these weird insurance policies can help offset the costs of the unexpected — no matter how unlikely.