Most of us are familiar with standard insurance policies—health, auto, homeowners—but what about the other types of coverage that could protect you from financial hardship? Many people don’t realize that their existing policies have gaps, and that’s where these lesser-known insurance options come in.
Here are some types of insurance you might not have considered, but should!
Protecting Your Home and Belongings
Many assume that homeowners or renters insurance covers everything, but these policies have limits. While they generally protect against fire, theft, and certain weather-related damage, they often exclude floods, earthquakes, and other specific events. That’s where these specialized policies come in.
Flood Insurance
If a storm causes your basement to flood or a nearby river overflows into your home, don’t expect your homeowners insurance to cover it. Standard policies do not include flood damage, so a separate flood insurance policy is necessary—especially if you live in a high-risk area. Even if you don’t, heavy rains and unexpected flooding can happen anywhere.
💡 What it covers: Structural damage, electrical and plumbing systems, appliances, and some personal belongings.
🚫 What it doesn’t cover: Basement improvements (like carpets and furniture), vehicles, and temporary housing costs.
Earthquake Insurance
Standard homeowners insurance also excludes earthquake damage. If you live in an area prone to seismic activity—like California, Oregon, or parts of the Midwest—this policy is worth considering.
💡 What it covers: Structural repairs, personal belongings, and sometimes additional living expenses if your home becomes uninhabitable.
🚫 What it doesn’t cover: Fire damage from an earthquake (which homeowners insurance does cover), sinkholes, or flood damage caused by quakes.
Fire Insurance
While homeowners and renters insurance usually cover fire damage, there are limitations—especially in wildfire-prone areas. Some insurers require a separate fire insurance policy in high-risk regions.
💡 What it covers: Home repairs, smoke damage, personal belongings, and temporary housing if your home is unlivable.
🚫 What it doesn’t cover: Fire caused by negligence (such as failing to repair faulty wiring) or arson committed by the homeowner.
Protecting Your Finances
Unexpected events can quickly drain your savings, but these policies provide financial safety nets when you need them most.
Umbrella Insurance
Think of umbrella insurance as extra protection beyond your home and auto policies. If someone sues you for damages that exceed your existing coverage, this policy kicks in to cover the rest. It’s especially useful if you have significant assets to protect.
💡 What it covers: Liability claims, legal fees, and damages that go beyond standard policies.
🚫 What it doesn’t cover: Your own property or injuries—you’ll need separate policies for those.
Disability Insurance
Your ability to earn an income is one of your greatest assets. If an illness or injury prevents you from working, disability insurance helps replace lost income so you can continue paying your bills.
💡 What it covers: A portion of your salary while you recover.
🚫 What it doesn’t cover: Pre-existing conditions, short-term illnesses, or injuries caused by risky activities (like skydiving).
Long-Term Care Insurance
Medical insurance doesn’t typically cover extended stays in nursing homes or in-home care. Long-term care insurance helps cover these costs, which can quickly add up to thousands of dollars per month.
💡 What it covers: Assisted living, nursing homes, and home care services.
🚫 What it doesn’t cover: Pre-existing conditions or medical treatments unrelated to daily care needs.
Mortgage Protection Insurance
If you pass away or become disabled, mortgage protection insurance ensures your family can stay in their home by covering mortgage payments. It can provide peace of mind, especially if you’re the primary income earner.
💡 What it covers: Mortgage payments in the event of death or disability.
🚫 What it doesn’t cover: Other household expenses like property taxes or maintenance.
Key Person Insurance
For small businesses, losing a key employee can be financially devastating. Key person insurance provides financial support to help a company recover if an essential owner or employee passes away or becomes disabled.
💡 What it covers: Lost revenue, hiring and training a replacement, and business continuity expenses.
🚫 What it doesn’t cover: Non-essential employees or excluded causes of death/disability.
Travel Insurance
Vacations and business trips can be unpredictable. Travel insurance protects against trip cancellations, medical emergencies, and lost luggage, ensuring you’re not stuck with unexpected costs.
💡 What it covers: Trip cancellations, medical emergencies abroad, lost or delayed baggage, and trip interruptions.
🚫 What it doesn’t cover: Pre-existing conditions (unless covered separately), cancellations for personal reasons, or high-risk activities.
Protecting Your Loved Ones and Investments
Whether it’s your pets, education, or even a big event, certain policies can provide coverage for the unexpected.
Pet Insurance
Vet bills can be shockingly expensive, and pet insurance helps cover the cost of unexpected illnesses, surgeries, and even medications.
💡 What it covers: Accidents, illnesses, and sometimes routine care.
🚫 What it doesn’t cover: Pre-existing conditions or elective procedures (like cosmetic surgeries).
Tuition Insurance
College is a big investment, and tuition insurance reimburses costs if a student has to withdraw due to illness, injury, or other covered reasons.
💡 What it covers: Tuition refunds for medical withdrawals.
🚫 What it doesn’t cover: Dropping out for personal reasons or poor academic performance.
Event Insurance
Planning a wedding, anniversary party, or other big event? Event insurance protects against unexpected cancellations, vendor no-shows, and weather disruptions.
💡 What it covers: Cancellations due to illness, extreme weather, or vendor failures.
🚫 What it doesn’t cover: Cold feet—if the bride or groom backs out, you’re out of luck!
Is One of These Policies Right for You?
Most of us don’t think about extra insurance—until we need it. While not every policy is necessary for everyone, certain ones can provide financial security in unpredictable situations. If any of these sound like they could protect you, it might be worth having a conversation with your insurance provider to see what makes sense for your lifestyle and budget.