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. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  2. Is there a limit on the amount of disability insurance that I can buy?

    Disability insurance policies are designed to partially replace your income in the event that you become disabled and cannot ... Read Answer >>
  3. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  4. 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 >>
Related Articles
  1. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  2. Insurance

    The Disability Insurance Policy: Now In English

    Learn to translate this complicated policy so you can rest assured you're covered.
  3. 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 ...
  4. 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 ...
  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

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  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. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  2. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  3. Waiver Of Premium For Disability

    A provision in an insurance policy that states that the insurance ...
  4. Disability Insurance

    A program managed by the Social Security Administration that ...
  5. Commercial Lines Insurance Pricing Survey - CLIPS

    An annual survey from the consulting firm Towers Perrin that ...
  6. Total Insurable Value

    Total insurable value is the value of property, inventory, equipment, ...
Hot Definitions
  1. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  2. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  3. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  4. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  5. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  6. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
Trading Center