By definition, a catastrophe is a natural calamity. It is also known as an event that resulted in great loss and misfortune. The catastrophic coverage is designed to supplement what is already in your insurance package.
The difference is that it gives you coverage from “acts of God” such as earthquakes, fires, flood, hurricanes and tornadoes. It also includes major accidents and in some cases, helps victims with health emergencies.
Given that a lot of insurance companies offer this to clients these days, it is best to read the fine print first before you sign up.
The nice thing about catastrophic coverage is that it can be a part of your existing insurance package or as a separate policy. Homeowners are not the only ones who have this because a lot of business owners have done the same thing as a precautionary measure.
Another advantage of catastrophic coverage is the fact that it has a very high deductible and a low premium. There is no argument that it will cost a lot of money but can you just imagine what would happen if you didn’t have it? Prolonged treatment or restoration of damaged property will cost more than what you actually paid and this failsafe will make sure you don’t go bankrupt.
If you are thinking that only the rich are capable of getting catastrophic coverage, think again because anyone can get it. People who have no health insurance coverage at all should take advantage of it because with it, you can be sure to get medical attention if you succumbed to a major illness or were involved in an accident.
Those who are well off and are healthy should do the same as well because there is no telling what can happen tomorrow. Why pay for minor things that the insurance company asks you to pay premiums for when this one happens to be much more useful?