Catastrophe Insurance

If you’re thinking about moving to Florida one day, consider Naples or Marco Island. They’re quiet, beautiful towns with plenty of housing and polite people. The only real downside to paradise is that they’re in the path of hurricanes every now and then. The thing is…if a hurricane or other natural disaster levels your house, your typical property insurance isn’t going to replace a home that’s washed away into the Gulf of Mexico.

You need a very specific type of insurance to protect yourself against rare, but highly destructive events. Enter catastrophe insurance.

This is a form of insurance that protects property against Acts of God or man-made disasters like war or terrorism. Insurance companies realize that one massive event will lead to a huge number of claims all at once. Which is why we see many different catastrophe insurance spreading risk across a market, with reinsurance policies backing up those companies.

Come to think of it...why not just stay on dry land? Kentucky’s nice. Oh, wait...there’s flooding there.

Oregon, then? Ah, no. Earthquakes.

Illinois? Tornadoes.

Boy, existence is terrifying.