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Excess casualty insurance is designed to cover events that happened when the policy was in force but that may not be discovered until years later. That means a customer's coverage is only as good as the ability of the insurer to stay in business and be around when a claim is finally made.
Incidental expenses that are incurred as a result of casualty or theft, such as emergency room treatment for injury suffered as a result of mugging, are not deductible as a casualty loss. Also note that incidental expense rates differ by region.