Insurance and Catastrophes
No one likes to think about bad things happening, but happen they do, as seen in severe winter storms throughout parts of the country, spring floods in numerous states, and the spring tornados in Kansas. Natural disasters, accidents, illnesses, and now terrorist activities and war all present serious personal and financial threats that can become reality. When faced with such catastrophes, insurance may carry you just so far, with economic losses outstripping your insurance recoveries. But you may be able to mitigate your financial losses by certain tax write-offs.
This chapter explains:
Mortgage insurance is covered in Chapter 4. Losses to your bank deposits are discussed in Chapter 8. For more information, see IRS Publication 547, Casualties, Disasters, and Thefts (Business and Nonbusiness); IRS Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property); and IRS Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. For information ...