Can Parametric Insurance Solve Coverage Problems

  • June 28, 2024
  • 2 min read

We’ve talked about this before on this channel, but we’re going to hit on very quickly another brief overview of parametric insurance. Parametric insurance is an event-based type of policy, unlike a claims-based policy where if you have damage to your house, the inspector comes out, looks at your house, assesses the damage cost, the repair cost, and the cause. They do a claims adjustment, deduct the deductible, and pay you the claims amount.

How Parametric Insurance Works
Parametric, on the other hand, is strictly an event-based payment. So if a certain event happens, like the wind going over 100 miles an hour or the temperature dropping below a certain percentage, you’ll be back in your video in just a few seconds. In the meantime, remember that actualhuman.com offers you live one-on-one private video consultations with an expert in this exact subject. We want to listen to your story, hear your questions, give you expert advisement of your options, and tell you what we know about your particular situation. Now, back to your video.

Claims Process in Parametric Insurance
If there’s a flood of a certain height above flood stage, they pay the claim regardless of damage or cause. They just go by what the trigger event was, look up the data, and don’t have to do inspections or damage calculations—they just write you a check.

Considering Parametric Insurance
So, if you have different types of unique coverages or hard-to-place coverages, look into whether or not parametric as a standalone or as a layer with other coverages would be the way you prefer to handle your transfer of risk of damage to your property, loss to your business, or other types of risk mitigation that might be helpful to your finances.

Closing and Additional Resources
Thank you for watching another episode of Actual Human Advisory on Describe TV. Remember, we have live one-on-one consultation appointments available at actualhuman.com, where you can book a live call with a licensed investigator, insurance broker, mortgage broker, real estate broker, certified real estate title examiner, and certified civil court mediator. Along with having developed and started over 15 businesses, several of which were sold for millions of dollars, if you have questions in any of those categories, you can arrange a one-on-one live video consultation. Use the link below, and we’ll see you on the next video.

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