Specialty insurance can fill a need when you are unable to secure a standard policy on a specific property. There are numerous reasons you might need to turn to specialty insurance. Underground tanks or an LLC-owned property are two examples. However, these are the three most common reasons you will need to seek out specialty insurance companies.
1. High-Value Properties
A home with a high valuation requires special insurance protections. This is common in coastal areas where homes can be valued well above typical costs for similar structures and there is a high probability of damage from storms or erosion.
2. Multi-Family Homes
Many standard residential policies will not cover smaller multi-family homes, yet they may not qualify for a commercial program either. Specialty insurance can be a viable solution to covering these rental properties with two to four units.
3. Properties Under Construction
Builders face unique risks. Partially completed homes and commercial buildings can sit vacant for prolonged periods of time, leaving them vulnerable to theft and vandalism.
Specialty insurance covers properties that are hard to insure or that pose elevated risks of loss. Homes that have unusually high values, those under construction and certain multi-family homes are some of the most common reasons you might need to seek specialty insurance coverage.