Personal Catastrophe Insurance

What Does Personal Catastrophe Insurance Mean?

Personal catastrophe insurance is an extension to an existing policy that covers property or vehicular liability. It protects the policyholder from expensive damages in tort that could potentially lead to significant financial loss.

Insuranceopedia Explains Personal Catastrophe Insurance

This policy serves as a protective barrier against unexpected financial events, where the costs far exceed the coverage provided by primary property or vehicular liability insurance.

Personal catastrophe insurance offers valuable protection when someone is seriously injured on the insured’s property and is awarded substantial damages. It is also helpful when the courts impose an unexpected financial obligation on the insured that they cannot afford.