can it be because people sometimes can go broke ?

When compared to the casualty loss rules for businesses, deductions for personal casualty losses have always had additional restrictions imposed when calculating the allowable amount. Furthermore, the current laws now limit deductions for personal casualty losses to federally declared disasters. Please share your thoughts on these additional restrictions imposed on nonbusiness casualty losses and the limitations impacting individual taxpayers who may incur personal casualty losses that are not related to a federally declared disaster. When compared to the casualty loss rules for businesses, deductions for personal casualty losses have always had additional restrictions imposed when calculating the allowable amount. Furthermore, the current laws now limit deductions for personal casualty losses to federally declared disasters. Please share your thoughts on these additional restrictions imposed on nonbusiness casualty losses and the limitations impacting individual taxpayers who may incur personal casualty losses that are not related to a federally declared disaster