Hidden Gems: Unusual Insurance Policies You’ve Never Heard Of

 

When we think about insurance, the first things that come to mind are usually the basics: health, auto, life, and homeowners insurance. While these are certainly essential, the world of insurance is much more expansive—and often more bizarre—than most people realize. From insuring body parts to protecting against alien abduction (yes, really!), there are countless unusual insurance policies out there designed to cover risks you’ve probably never considered.

In this post, we’re diving into some of the quirkiest and most fascinating insurance policies you’ve never heard of. Whether you're a fan of the unexpected, a curious insurance seeker, or someone who simply enjoys reading about the wild side of life, these hidden gems are sure to surprise and entertain you.

1. Pet Insurance – Because Fido Deserves the Best Care

For many people, pets are members of the family. We feed them, spoil them with toys, and even talk to them as if they can understand us. So, it only makes sense to protect our furry companions with insurance, right?

What Is Pet Insurance? Pet insurance is a growing trend that covers the cost of medical treatment for your pets. With the rising cost of veterinary care, pet insurance helps cover everything from routine checkups to emergency surgeries. Depending on the policy, it can also cover prescription medications, diagnostic tests, and even pet dental care.

While pet insurance has become more common, it’s still a hidden gem in the sense that many pet owners don’t know it exists—or they assume it’s too expensive. But with affordable plans now available, there’s no reason to skip out on giving your pets the same healthcare protection you enjoy.

Fun Anecdote: Sarah, a dog owner from New York, had never considered pet insurance until her Labrador, Max, swallowed a whole tennis ball. “I rushed him to the vet, and the surgery to remove the ball cost me over $4,000. If I’d had pet insurance, the cost would’ve been covered!” she said. Since then, Sarah has taken out a policy for Max, who (thankfully) has learned to leave tennis balls alone.

2. Alien Abduction Insurance – Out of This World Coverage

Yes, you read that right. Alien abduction insurance is a real thing! Whether you’re a true believer in extraterrestrial life or simply have a sense of humor, this policy might appeal to you.

What Is Alien Abduction Insurance? This quirky policy is designed to cover you in case you are abducted by aliens. While it may sound absurd, over 30,000 people worldwide have reportedly purchased alien abduction insurance. These policies usually provide coverage for psychiatric care, medical treatment, and even compensation for “alien pregnancy” or “alien examination.”

Of course, no one has ever successfully filed a claim, but these policies often come with a fun, tongue-in-cheek contract that makes for a great conversation piece.

Fun Anecdote: In 1998, a man named Denis Hope created what he called “Alien Abduction Insurance” and began selling policies for just $20. He even had a few famous clients, including actress Shirley MacLaine, who believed in the possibility of extraterrestrial encounters. While Denis never paid out any claims, he did manage to sell thousands of policies to curious (and perhaps hopeful) buyers.

3. Body Part Insurance – Insuring What Makes You, Well, You

When you think about what’s most valuable to you, what comes to mind? For some celebrities, it’s not their homes, cars, or even their businesses—it’s their body parts.

What Is Body Part Insurance? Body part insurance allows individuals, often celebrities or athletes, to insure specific parts of their body that are crucial to their careers. For example, a model might insure her legs, a musician might insure his hands, and a soccer player might insure his feet. If that body part is damaged or injured in a way that affects their ability to work, the policy will pay out a lump sum to cover lost income or medical treatment.

Some of the most famous examples include:

• Mariah Carey’s Legs: The pop diva reportedly insured her legs for $1 billion during a promotional campaign with Gillette. The campaign, fittingly called "Legs of a Goddess," made sure her famous limbs were fully covered.
• David Beckham’s Feet: As a world-renowned soccer player, Beckham’s feet were essential to his career, so it’s no surprise that he insured them for $195 million.
• Gene Simmons’ Tongue: The KISS frontman, known for his signature tongue, reportedly took out an insurance policy on it for $1 million.

Fun Anecdote: One of the most famous examples of body part insurance comes from the 1940s when actress Betty Grable insured her legs for $1 million—an enormous sum at the time. She was considered one of Hollywood's biggest stars, and her legs were often featured in promotional materials. This clever PR move not only made her more famous but also created a lasting legacy in the world of body part insurance.

4. Wedding Insurance – Protecting Your Big Day from Disaster

Your wedding day is supposed to be one of the most memorable moments of your life, but what happens if things don’t go according to plan? That’s where wedding insurance comes in.

What Is Wedding Insurance? Wedding insurance protects couples from financial losses if something goes wrong on their big day. Policies typically cover everything from venue cancellations to vendor no-shows, extreme weather, and even dress damage. Some policies also cover personal liability if a guest gets injured or if there’s property damage at the venue.

With the average cost of a wedding in the U.S. now surpassing $30,000, wedding insurance offers peace of mind for couples who want to protect their investment in their special day.

Fun Anecdote: Melissa and John were all set to tie the knot in Hawaii when a hurricane hit just two days before their wedding. “We were devastated at first,” Melissa said. “We thought we’d lose everything we paid for, but luckily, we had wedding insurance. It covered the cost of rescheduling, and we ended up having the wedding a few months later without losing a penny.”

5. Event Cancellation Insurance – Because Life Is Unpredictable

We all know that life doesn’t always go as planned. If you’re hosting a big event, such as a concert, festival, or corporate retreat, the risk of cancellation can be a financial nightmare. That’s where event cancellation insurance comes into play.

What Is Event Cancellation Insurance? Event cancellation insurance protects organizers from financial losses if they have to cancel or postpone their event due to unforeseen circumstances. This can include everything from extreme weather to illness, labor strikes, equipment failure, and even terrorist threats.

This type of insurance is especially useful for large-scale events where thousands or even millions of dollars are on the line. From concert promoters to conference organizers, anyone hosting an event can benefit from this extra layer of protection.

Fun Anecdote: When the Glastonbury Music Festival in England had to be canceled in 2012 due to heavy flooding, organizers were able to recoup their financial losses thanks to event cancellation insurance. Without it, the cost of rescheduling the festival would have been devastating, both for the organizers and the performers.

6. Prize Indemnity Insurance – Protecting High-Stakes Promotions

You’ve probably seen those eye-catching contests that offer huge prizes like million-dollar jackpots or a brand-new car. But have you ever wondered how companies can afford to offer such extravagant rewards? The answer is simple: prize indemnity insurance.

What Is Prize Indemnity Insurance? Prize indemnity insurance allows companies to offer high-value prizes without assuming the full financial risk. If a contestant wins the grand prize, the insurance company pays out the money instead of the sponsoring company. This type of insurance is commonly used for promotions, contests, and sporting events, such as hole-in-one challenges in golf tournaments.

Fun Anecdote: In 2001, Pepsi launched a contest in the Philippines, offering a million pesos to the person who found a specific number under their bottle cap. But due to a printing error, hundreds of bottle caps had the winning number, leading to chaos. Luckily, Pepsi had prize indemnity insurance, which helped cover the massive financial fallout from the mistake.

7. Bedbug Insurance – Keeping Unwanted Guests Away

Imagine checking into a luxury hotel, only to discover that your bed has some unwelcome visitors—bedbugs. Unfortunately, bedbug infestations can happen anywhere, and they’re not just gross; they’re expensive to deal with. That’s where bedbug insurance comes in.

What Is Bedbug Insurance? Bedbug insurance helps cover the cost of treatment and cleanup in the event of an infestation. It’s primarily purchased by hotels, landlords, and property managers who want to protect their properties and guests from the financial and reputational damage caused by bedbugs.

Fun Anecdote: In 2010, a luxury hotel in New York City had to pay over $100,000 in cleanup costs after a bedbug infestation was discovered in several rooms. Had they invested in bedbug insurance, they could have avoided the financial hit—and the PR disaster that followed.

Conclusion: Protecting the Unexpected

While most of us only think about insurance in terms of the basics—health, life, and auto coverage—there’s a whole world of unusual policies out there designed to protect against life’s more unexpected events. Whether it’s insuring your pet, your wedding, or even your body parts, these hidden gems in the insurance industry offer protection and peace of mind in ways you may never have imagined.

So, the next time you’re thinking about protecting your assets, remember: if it exists, there’s probably insurance for it!