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.

  1. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  2. Does renters insurance cover water damage?

    An all-perils renters insurance policy does cover water damage, less the deductible, to personal property if the damage is ... Read Full Answer >>
  3. Does a Flexible Spending Account (FSA) cover massages?

    Flexible Spending Accounts (FSAs) cover massages for certain medical treatments. These treatments must be approved and prescribed ... Read Full Answer >>
  4. Does a Flexible Spending Account (FSA) cover Lasik?

    Flexible spending accounts (FSA) can be used to pay for qualifying LASIK procedures. LASIK is not the only laser eye surgery ... Read Full Answer >>
  5. Are Flexible Spending Account (FSA) expenses tax deductible?

    Flexible Spending Account (FSA) expenses are not tax deductible. The U.S. Internal Revenue Service (IRS) states you cannot ... Read Full Answer >>
  6. Does a Flexible Spending Account (FSA) cover acupuncture?

    A Flexible Spending Account (FSA) covers acupuncture. The Internal Revenue Service (IRS) has defined acupuncture as a qualifying ... Read Full Answer >>
Related Articles
  1. Budgeting

    Preventing Medical Bankruptcy

    If you’re worried medical expenses could overwhelm you, there are some thing you can do to ease your concerns.
  2. Insurance

    Medicare 101: Do You Need All 4 Parts?

    Medicare is the United States’ health insurance program for those over age 65. Medicare has four parts, but you might not need them all.
  3. Insurance

    How Life Insurance Works in a Divorce

    Learn the implications of life insurance in a divorce situation, and identify the steps you should take to ensure your policies are sorted out post-divorce.
  4. Entrepreneurship

    Creating a Risk Management Plan for Your Small Business

    Learn how a complete risk management plan can minimize or eliminate your financial exposure through insurance and prevention solutions.
  5. Insurance

    6 Reasons To Avoid Private Mortgage Insurance

    This costly coverage protects your mortgage lender - not you.
  6. Insurance

    What's The Difference Between Medicare And Medicaid?

    One program is for the poor; the other is for the elderly. Learn which is which.
  7. Entrepreneurship

    Identifying And Managing Business Risks

    There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.
  8. Insurance

    Cashing in Your Life Insurance Policy

    Tough times call for desperate measures, but is raiding your life insurance policy even worth considering?
  9. Insurance

    Avoiding The Modified Endowment Contract Trap

    To avoid MEC status, flexible-premium policies must cap the amount that can be paid into the policy over a period of seven years.
  10. Entrepreneurship

    Top 10 Features Of a Profitable Rental Property

    Find out which factors you should weigh when searching for income-producing real estate.
  1. Crowding Out Effect

    An economic theory stipulating that rises in public sector spending ...
  2. Comprehensive Glass Policy

    An insurance policy that covers glass that has been broken or ...
  3. Coastal Barrier Improvement (CBI) Act

    A federal law that makes federal disaster relief and federal ...
  4. Net Collections

    A term used in medical accounting to describe the amount of money ...
  5. Directors And Officers Liability Insurance

    Directors and officers liability insurance covers you if you're ...
  6. Corridor Deductible

    Expenses that are paid by the insured in excess of an insurance ...

You May Also Like

Trading Center