The insurance industry is several hundred years old but it is constantly evolving as our society and people’s needs change. Parametric insurance is a good example of how the industry is ever evolving and one that could be very useful to property owners in coastal areas where named tropical storms and hurricanes present risk.

Parametric insurance is a coverage that’s been quickly evolving since Hurricane Irma and can now offer property owners some added peace of mind that when a named storm approaches their property, they can be paid for their losses even if their property was not directly damaged. Parametric insurance is not a new concept, both life insurance and travel insurance are established examples of parametric coverage, but it’s now being offered to help pay some of the costs a property owner incurs when a storm approaches them.

Parametric insurance is designed to offer supplemental protection from things like high deductibles and the exclusions found in most commercial property policies in the event a windstorm visits the community. While a typical insurance policy is filled with thousands of words including terms, conditions, exclusions and so forth, a parametric policy is based on meeting the pre-established index and does not depend on words in a traditional insurance policy. It’s based more on meeting the pre-established parameters rather than words.

It does not matter whether the loss was caused by wind, flying debris, rain, water, storm surge, flood, mold, so long as the hurricane triggers are met. The triggers that establish whether a payment is owed to the policy owner, and the amount of that payment relative to the limit you purchase, are the size category of the hurricane and its distance to the insured address at its closest tracked location.

Payment can be used for anything, damage repairs are under your deductible, for items not covered by the wind policy or even towards your deductible. Whatever you like. There are no adjusters, no deductibles, no claim delays, no exclusions, and payments are established before a loss takes place. Settlement is typically completed quickly, between 72 hours and a couple of weeks after the loss and payment is made regardless of the extent of physical damage or if there even was any physical damage.

Examples of the types of expenses that a property owner might use parametric coverage for can include:

A. All Landscaping including: Debris Removal, Beach and Lake Erosion

B. Seawalls, Docks, Swimming Pools and Piers

C. Windows, Glass and Balconies

D. Outdoor Property such as Fences, Light Poles, Entry Monuments, Fountains and Gazebos

E. Contents and Structural Damage

F. Ordinance or Law

G. Business Interruption

H. Loss Of Income, Payroll Expenses

I. Evacuation Expenses

J. Vandalism

K. Cleanup Costs

L. Mold

M. Additional Living Expenses

Parametric insurance allows you to predict what you will be paid when pre-established conditions are met. Parametric coverage is triggered based on the distance of a named storm to your address and the size/category of the storm. Both distance and size are defined by the US National Hurricane Center’s public data that defines the center of each hurricane eye and maximum wind speed used to convert a hurricane category.



Hurricane Category0 To 5 Miles5 To 15 Miles15 To 30 Miles30 To 60 Miles60 To 120 Miles

After nearly 70 years in business, Morris & Reynolds Insurance continues to pride ourselves on providing our clients with a combination of old fashioned, reliable service along with cutting edge coverage and technological solutions such as parametric property coverage. If you’d like to learn more about how parametric insurance can help with named storm related costs for your home or commercial property, or just about anything else related to insurance, benefits and risk, please contact our professional agents and underwriters any time.



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14821 South Dixie Highway, Miami, Florida 33176
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