UFO insurance and alien abduction coverage are typically offered as novelty policies. The most famous example of UFO coverage comes from Florida’s St. Lawrence Agency which is often called the “UFO Abduction Insurance Agency.” As of 2019, the company had sold 6,000 of these policies.
An alien abduction policy from St. Lawrence will run a customer around $20. It includes $10 million in coverage, which the insurer agrees to pay out at $1 per year for 10 million years. In order to receive their payout, the claimant must provide verification of abduction by aliens or other non-human lifeforms.
While it is hard to believe these niche policies would ever be utilized, the company has reportedly paid out two claims on its UFO insurance since it began offer the coverage in 1987.
There are lessons to homeowners can take from the burden of proof required by these lighthearted policies, however, including the importance of understanding what is actually covered under their insurance policies.
UFO policies are also a reminder to collect as much proof of a loss as possible (receipts, photos, inventories etc.) to provide to the insurance company when filing a claim, and can inspire insureds to prepare for the unlikely when purchasing insurance coverage. Even a novelty policy like alien abduction insurance can help highlight gaps in coverage, assumptions insureds possess and overlooked details in more traditional coverage.
If you would like to test out your extraterrestrial insurance policy, the slideshow above features at the ten best places for UFO spotting in the United States, according to research from 1000 Mines.
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