Definition of "Special risk insurance"

Debi Larsen real estate agent

Written by

Debi Larsenelite badge icon

RE/MAX Evolution

Transfer of highly individualized loss exposures that is not based on the usual pooling principles of insurance such as risk identification and classification selection. Rather than setting up an insurance pool of standard risks, the underwriter accepts responsibility for a unique or special risk. Some examples would be insurance by Lloyd's of London underwriters for athletes, artists, and entertainers; insurance on Betty Grable's legs; or insurance for dangerous scientific experiments or moon travel.

Comments for Special Risk Insurance

Francisco Maldonado Fcm1046@ Francisco Maldonado Fcm1046@ said:

Does special risk home ins cover flood

Apr 06, 2018  20:35:41

 
Real Estate Agent

Hey, Francisco
That's a great question... with no simple definitive answer.

The whole concept of special risk insurance is to protect assets from specific risks common to specific business and activities not covered by the ordinary homeowner's insurance policy and yes; flood is not typically covered by homeowner's insurance. However,  because of climate change, flood has become something so common in the United States - independently from state and proximity to the shores and body of water - that Flood Insurance became an insurance of its own.  So, since it's not an uncommon risk, it'll be hard to find a special risk insurance policy that covers flood. The insurance company will most likely tell you to buy their specific flood insurance. But who knows... maybe one or another might include it if the area is reaaaally unlikely to get flooded, like the top of a mountain or something.

Hope we helped!

Apr 13, 2018  10:25:47
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Three basic plans are available to cover the costs of health care: commercial health insurance, private noncommercial (blue cross/blue shield), and social insurance (Social Security). ...

Associated insurers that are under common stock ownership or interlocking directorates. Such an arrangement makes it easier to exchange insurance products for sale to the consumer, reduces ...

Mathematical premise stating that the greater the number of exposures, (1) the more accurate the prediction; (2) the less the deviation of the actual losses from the expected losses (X - x ...

Obligation of the insured to report losses from a covered peril to the insurance company or its representative as soon after its occurrence as possible. ...

Coverage that protects a business, up to the policy limits, if actions or non-actions of the insured result in a legally enforceable claim for bodily injury, property damage, or personal ...

Refusal by an insurance company to underwrite or to continue to underwrite questionable risks in a given geographical area. This is an important civil rights issue. ...

Excess coverage over the first layer of medical insurance to provide for catastrophic medical payments. The first layer may be either group or individual medical insurance, or an individual ...

Device that enables the health maintenance organization (HMO) to present a premium quotation to the employer that would encourage the employer to replace the current health carrier. The POS ...

Same as term Associate in Automation Management: professional designation earned after the successful completion of three national examinations given by the insurance institute of America ...

Popular Insurance Questions