Definition of "Special risk insurance"

Debi Larsen real estate agent

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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
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