Loss of use coverage compensates homeowners and renters for additional living expenses when their residence becomes uninhabitable due to insured events like fires or storms.

Adverse selection causes market imbalances in insurance when high-risk individuals disproportionately purchase coverage, leading to increased premiums and potential market failure for insurers.

Catastrophic losses are severe, unpredictable events, such as hurricanes and earthquakes, causing extensive financial damage and requiring specialized insurance coverage for protection.

Disability significantly restricts individuals’ physical or mental abilities, impacting their quality of life and access to healthcare, social support, and employment opportunities.