A:

Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property in the event of a covered loss. Property that is commonly covered with casualty insurance includes houses, condominiums, cars, motorcycles, boats, yachts and personal sports and recreation machines.

In the event of a loss resulting from a covered event named in the policy, casualty insurance is designed to repair or replace the property for the policyholder. Covered events may be auto accidents, acts of God (such as damage resulting from weather), vandalism and theft. These covered events are detailed in the policy and should be reviewed and understood when buying a casualty insurance policy. (Be sure to read Insurance Tips For Homeowners to learn more about the insurance policies available to protect your home.)

Disability insurance protects an individual's income in the event the insured becomes too ill to work, or is hurt and unable to earn an income. In the event of a disability, a portion of an individual's income is replaced through the benefits of the disability income policy. This helps reduce the financial impact a disability may have. (Learn how to translate this complicated type of insurance policy, in our related article The Disability Insurance Policy: Now In English.)

Companies offering disability insurance often limit the amount of coverage available to an individual - usually based on the individual's income. A disability income policy is designed to help reduce the financial impact of a disability, not to fully replace an individual's income.

This question was answered by Barry Higgins.

RELATED FAQS
  1. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  2. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
Related Articles
  1. Insurance

    Protecting Your Income With Disability Insurance

    For a high-earning professional, income protection is essential. Here's what to look for in a disability insurance policy.
  2. Managing Wealth

    Tips for Insuring Your Salary

    Those with high incomes really can’t afford to be without disability insurance. Here's why.
  3. Insurance

    The Disability Insurance Policy: Now In English

    Learn to translate this complicated policy so you can rest assured you're covered.
  4. Managing Wealth

    Top 6 Features Of A Great Disability Policy

    Many people consider buying life insurance, but few think to prepare themselves from long-term illness or disability. Find out how to shop for disability insurance and protect yourself from financial ...
  5. Financial Advisor

    Advising FAs: Explaining Disability Insurance to a Client

    Disability is a very critical type of insurance that most individuals should consider carrying. When it comes to your personal finances, long-term disability can have a devastating effect if ...
  6. Insurance

    How To Invest In Insurance Companies

    Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment and whether the economic environment ...
  7. Insurance

    4 Types Of Insurance Everyone Needs

    Here are four forms of insurance that are vital to have.
  8. Insurance

    5 Things You Need to Know About Disability Insurance

    It's important to understand the true value of your ability to earn income, and to make sure it's protected.
RELATED TERMS
  1. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  2. Insurance Industry ETF

    A sector-following fund that invests primarily in insurance companies, ...
  3. Total Insurable Value

    Total insurable value is the value of property, inventory, equipment, ...
  4. Cover Note

    A temporary document issued by an insurance company that provides ...
  5. Any-Occupation Policy

    A term used in the insurance industry to refer to a specific ...
  6. Insurance Proceeds

    The benefit proceeds paid out by any type of insurance policy ...
Hot Definitions
  1. Collateral

    Property or other assets that a borrower offers a lender to secure a loan. If the borrower stops making the promised loan ...
  2. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
  3. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  4. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  5. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  6. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
Trading Center