Specialty Insurance

Specialty Insurance Guide

Specialty insurance fills the gaps that standard policies leave behind. While auto, home, and health insurance cover everyday risks, specialty coverage protects against specific circumstances—from a canceled destination wedding to nursing home costs decades from now.

These policies are optional but can provide significant financial protection when standard coverage falls short. The key is matching specialty coverage to your actual risks rather than buying policies you don’t need.

When Specialty Insurance Makes Sense

Consider specialty coverage when:

• Standard policies exclude the risk — Homeowners insurance doesn’t cover floods or earthquakes in most cases
• The potential loss is significant — Long-term care can cost $100,000+ per year
• You have specific valuable assets — Jewelry, art, or collectibles beyond homeowners limits
• A life event creates temporary risk — International travel, a wedding, or a new pet

Specialty Insurance Types

Travel Insurance

Coverage for trip cancellation, medical emergencies abroad, and lost luggage. Essential for expensive trips, international travel, or destinations with limited healthcare. Policies range from basic trip cancellation to comprehensive coverage including medical evacuation.

Pet Insurance

Health coverage for veterinary costs for cats, dogs, and other pets. Covers accidents, illnesses, and sometimes preventive care. Most valuable for puppies/kittens (before pre-existing conditions) and breeds prone to health issues.

Long-Term Care Insurance

Coverage for nursing home, assisted living, and home health care costs that Medicare doesn’t cover. Best purchased in your 50s-60s while still healthy enough to qualify. Consider hybrid life/LTC policies as an alternative.

Identity Theft Protection

Coverage and services to help prevent, detect, and recover from identity theft. Includes credit monitoring, fraud alerts, and reimbursement for recovery expenses. Some homeowners policies include basic coverage.

Wedding Insurance

Coverage for wedding cancellation, postponement, vendor no-shows, and liability at the venue. Typically costs $150-$500 for $25,000-$50,000 in coverage. Worth considering for destination weddings or large events.

Related Checklists

• Retiring Checklist — Long-term care insurance decisions
• Getting Married Checklist — Insuring valuable gifts and combining coverage
• Moving to a New State Checklist — Updating specialty coverage for your new location

Related Insurance Types

• Health Insurance - Medical coverage that specialty insurance supplements
• Property & Casualty Insurance - Standard coverage specialty insurance enhances
• Life Insurance - Hybrid life/LTC policies available
• Disability Insurance - Income protection while you’re alive

Next Steps

1. Assess your specific risks — What gaps exist in your current coverage?
2. Calculate potential losses — Would you need financial help if the risk occurred?
3. Compare specialty vs. self-insurance — Can you afford to cover the risk yourself?
4. Get quotes from multiple providers — Specialty insurance prices vary significantly
5. Read exclusions carefully — Know what’s not covered before you buy

Official Resources

• NAIC Long-Term Care Insurance (opens in new tab) - LTC consumer guide from state regulators
• Medicare Long-Term Care (opens in new tab) - What Medicare does and doesn’t cover
• State Department Travel Insurance Info (opens in new tab) - International travel health guidance
• Find Your State Insurance Department (opens in new tab) - Verify insurers, file complaints