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Insurance

Catastrophe deductible

Property insurers often require homeowners to pay a deductible before their insurance policy covers damages caused by a major natural disaster. This deductible can be either a specific amount or a percentage of the property's value. By implementing these deductibles, insurers are able to limit their potential losses and offer coverage to more properties. If an insurer's potential losses exceed a certain level, they may not be able to secure reinsurance to protect their own finances.
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