Almost any potential loss or damage can be insured against, if you find the right company.
It is common practice to obtain insurance against damage to your home and automobile or valuable personal possessions. Many people have insurance to cover their families in case of death.
But there are other forms of insurance that one can buy to protect themselves against loss or damage to some unusual items, things you might not think you could get insurance to cover.
For instance: weddings gone bad, your favorite football player getting injured, or bad weather at the wrong time.
Insurance companies operate for a profit, and they gain that profit by asking customers to pay a premium for a set amount of insurance coverage. They hedge their bets that they will not be required to pay off the insurance amount, and use statistical information to determine the proper amount of money t charge in premiums to cover them when they do have to pay off.
In the case of home, automobile, health and life, those numbers can be easily obtained, and there are many individuals who spend their lives calculating actuarial tables to determine probabilities of damage and loss.
But there are some unusual insurance policies, many backed by Lloyds of London, in which individuals are spending a lot of money and just want to protect themselves in case things just don’t go quite right.
Wedding Insurance – It has been estimated that the average American wedding costs $29,000 by the time the last glass of champagne is consumed at the reception. Almost all of that money is paid out in advance of the event.
And there are occasions when weddings get called off after all the preparations have been made and bills have been paid. In most cases, that is money that is not going to be given back just because the wedding couple got into the fight to end all fights.
So there are companies that will insure the cost of the wedding in case of cancellation.
Fireman’s Fund has been insuring weddings for two decades, protecting against the non-refundable expenses, including cancellation due to illness, injury, bad weather or when a banquet facility closes unexpectedly. In the last couple of years, Fireman’s has added “change of heart’’ insurance in case someone gets left stranded at the altar.
Fantasy Sports Insurance – There are people who take fantasy sports very seriously, and spend thousands of dollars betting on the performance of athletes. In some cases, a team’s fortunes rest on the performance of one star player, and now fantasy league team owners can get insurance against a player like that getting injured and missing a large portion of the season. In most cases, the player has to miss half a season due to injury in order for the fantasy player to get a payout. Only the best players in a sport will get covered.
Multiple Birth Insurance – The cost of raising a child from birth to the age of 18 in America is over a quarter of a million dollars. The cost of raising two probably comes close to twice that amount. The cost of raising three goes up three times, and so on.
So today parents-to-be can take out insurance covering their unexpected expenses that would come from a multiple birth. Lloyds of London reports that a couple from Michigan took out the insurance for their first birth, got twins, got their insurance payout, got pregnant again, took the insurance out again, and got a second set of twins.
Body Part Insurance – If your line of work is dependent on a specific body part (a kicker in football, a dancer, an actress known for her smile) it is possible to get that specific body part insured against injury. For famous men dependent on maintaining a particular image, it is possible to have signature facial hair growth (mustaches, beards) insured.
Physical Challenge Insurance – It is commonplace now for sporting events to present a physical challenge during a timeout for a lucky fan. Whether it is shooting a half-court basketball shot for $100,000 or kicking a field goal for airline tickets, the cost of the prize to the company promoting the challenge is usually protected by an insurance policy.
Off the Wall Insurance – A British company offers a million pounds to anyone capturing the Loch Ness monster. Another British company takes out insurance against the possibility two or more employees would win the national lottery and quit work.
Insurance Policy That Will Never Be Cashed in – It is possible to get insurance against the event that you get abducted by aliens. However, you must be able to escape the aliens and prove you were abducted.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.