Insurance Definition: CATASTROPHE DEDUCTIBLE
By Compuquotes Team on March 27th, 2008
CATASTROPHE DEDUCTIBLE:
Definition:
- A percentage or dollar amount that a homeowner must pay before the insurance policy kicks in when a major natural disaster occurs. These large deductibles limit an insurer's potential losses in such cases, allowing it to insure more property. A property insurer may not be able to buy reinsurance to protect its own bottom line unless it keeps its potential maximum losses under a certain level.
Information provided by Insurance Information Institute
