What kind of coverage does 'natural catastrophe insurance' provide?

Natural catastrophe insurance is specifically designed to provide coverage for losses that arise from various natural disasters, such as earthquakes, floods, hurricanes, and tornadoes. These events are typically beyond human control and can lead to significant property damage and financial loss for individuals and businesses.

The purpose of this type of insurance is to help policyholders recover from the financial impact of these disasters, allowing them to rebuild and regain stability after experiencing such unpredictable events. This distinction is crucial because it focuses specifically on events that occur naturally, offering targeted protection in scenarios where standard insurance policies may not sufficiently cover the risk.

In contrast, other types of coverage, such as liability insurance for homeowners, protects against claims from damages or injuries caused to others, while financial support for business operations generally refers to coverage for lost income rather than direct property damage. Protection against human-made disasters encompasses a different range of risks, typically covered under policies related to terrorism or vandalism. Therefore, the focus and scope of natural catastrophe insurance clearly align with its designation, making coverage for losses caused by natural disasters the appropriate answer.