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How Does Catastrophe Insurance Overlap With Other Coverages?

Owning property in Bluffdale, UT, you want to be sure you’re protected from events that can create significant damage. Major storms, calamities, and the like are scary prospects, and it turns out that there’s a type of insurance made just for these events: catastrophe insurance.

But doesn’t your home insurance policy already cover a lot of this? How do the two work together? We get these questions a lot at United Insurance Services Inc., so we made a quick guide to help you understand common points of overlap between catastrophe insurance and other policies. As you read, remember that every policy is unique; these are only general comparisons.

Homeowner’s Policies

Catastrophe insurance is largely designed to cover gaps in typical home insurance policies. This includes natural disasters like floods and earthquakes. It also includes human disasters, like riots. In most cases, a home policy won’t have any overlap with catastrophe coverage, and that’s the point.

This largely holds true for commercial property insurance as well. The catastrophe policy is designed around traditional exceptions of coverage in property insurance. You won’t see very much overlap, if any, remembering that each policy is unique and will have specific differences in coverage.

Hazard Insurance

On the other hand, hazard insurance and catastrophe insurance tend to have a lot of overlap. With some providers, these are two names for the same insurance, but with many providers, there are subtle differences that are worth noting.

In general, hazard insurance is designed for the so-called acts of God. Major storms are a big example. Many home policies have limited or no coverage when it comes to “acts of God,” and hazard insurance is designed to make sure you are covered for those events.

Catastrophe insurance covers many of those same gaps, but it adds more coverage in terms of human-called catastrophes, like riots.

We Are Here To Help!

In all, catastrophe insurance is a great way to make sure your property in Bluffdale, UT, is covered from some of the most devastating events that can happen. If you would like to explore this idea in greater detail, contact your United Insurance Services Inc. representative today.