Catastrophe Bond (Cat Bond)

An investment that funds disaster claims: investors earn interest but lose principal if a defined catastrophe strikes. Wall Street meets the hurricane.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.