Superior Good
What Does Superior Good Mean?
A superior good is a product that people demand more of as their incomes increase. These products are typically more expensive and rare, such as diamonds and classic cars. Superior goods often serve as status symbols, making them highly desirable for individuals seeking to display their wealth as they become richer.
From an insurance perspective, it is crucial for individuals to purchase additional coverage for superior goods, as standard insurance policies often do not provide sufficient protection for these high-value items. For instance, if someone owns expensive property like jewelry or paintings, they should consider buying a separate policy rider to ensure adequate coverage for these superior goods.
Insuranceopedia Explains Superior Good
What sets superior goods apart is their high cost and relative rarity or exclusivity. Most insurance policies impose relatively low limits on the coverage they provide for jewelry and other valuable items. For individuals who own such valuables, particularly superior goods, this standard coverage is often insufficient. In these cases, additional insurance “floaters” can be purchased to ensure adequate coverage that reflects the true value of these items.
