What Advantage Does Specialist Insurance Give You Over Traditional Insurers?
There are lots of different types of insurance and you can cover almost anything. Some insurance is compulsory, for example, you can’t drive a car without at least basic car insurance, and you can’t get a mortgage on your house without buildings insurance. Insurance helps you protect yourself against risks.
What is traditional Insurance?
Essentially it is insurances as we typically know it. It is insurance which provided a ‘one size fits all’ cover and packages that fit the needs of the masses. Most insurances such as contents insurance, business insurance health insurance all follow the insurance traditional model.
What is Specialist insurance?
Specialist insurance is usually individual policies which are tailored to specific items. These items would usually be considered non-standard property or high-risk items. These may include things like gadgets, bikes tool, instruments or jewellery. Specialised insurance can be a personal cover or cover for business items.
So what are the advantages of specialist insurance?
Primarily what specialised insurance gives you over traditional insurance policies is the ability to cover items against the specific risks they might face.
A mobile phone, for example, may be covered by your home contents insurance for theft or basic damage which has occurred in the home but more often than not, it won’t cover you for the common risks associated with a mobile phone such as water damage, repairing a cracked screen or theft from outside of the home.
The other benefit is when it comes to excess. Your excess will vary depending on what you claim for however with specialist insurance often has much lower excess options. Excess in traditional policies may be much higher and exceed the value of the item in question, therefore, negate the justification for making a claim.
No claims bonus and discounts may also be affected. If you make a claim on your house insurance, for example, you could end up paying more on your premiums when it comes to renewing your policy. For items that sit in the high-risk bracket are better suited to their own specialist insurance to protect your general cover costs
it pays to be aware of single item limits when it comes to cover. You may be able to have higher single limits with specialist insurance policies than standard policies. With item insured in this way, it gives you total peace of mind and confidence the value of your item is fully protected not just partially.
When it comes to protecting your property it’s important to make sure your cover so you can be safe in the knowledge should you need to make a claim you will be compensated in the manner you expect. If you own high value or high-risk items or if the maximum claim amount you can make doesn’t cover your items, you might want to consider taking out specialist cover.