What are "catastrophic insurance policies" specifically designed to cover?

Catastrophic insurance policies are specifically designed to provide coverage for large-scale disasters that result in significant financial loss. These policies typically address events such as natural disasters, including hurricanes, earthquakes, floods, and other major catastrophic events that can disrupt lives and cause extensive damage to property or assets.

The essence of catastrophic insurance is to protect individuals, businesses, and organizations from the financial strain that can come with massive, unforeseen incidents, which are beyond the scope of regular homeowners' or property insurance coverage. Such plans are critical for individuals living in high-risk areas where these types of disasters are more likely to occur.

In contrast, options related to small household incidents, universal health care needs, or personal auto accidents deal with everyday and more manageable risks that are typically covered by standard insurance policies, rather than catastrophic coverage.