Which aspect does catastrophe insurance specifically address?

Catastrophe insurance specifically addresses significant losses that arise from catastrophic events, such as natural disasters like hurricanes, earthquakes, floods, and other large-scale incidents that can cause extensive damage to property and significant financial losses. Unlike standard insurance policies that typically cover everyday operational losses or minor property damage, catastrophe insurance is designed to protect against the unpredictable and severe impact of these major events. It offers specialized coverage that is crucial for individuals and businesses located in high-risk areas, ensuring they have financial protection against the potentially devastating consequences of such disasters. This type of insurance allows policyholders to recover more effectively after a catastrophic event, securing their assets and supporting their recovery efforts.