The Expert Podcast

So, as more and more consumers and business owners are finding that insurance coverage is more difficult to get and also has more gaps in coverage, they're looking at alternate types of insurance. And here's one of the reasons why. Experts are warning that there's a new trend in home valuation and that comes from insurance. So, if you have a home that is in a coastal area like you see this picture here where these homes are at risk of basically sliding into the ocean or being damaged by hurricanes, there's a type of insurance called parametric which can complement traditional property coverage.

And what happens is if you are in an area where there's a higher risk of some natural disaster or some catastrophic event could be fire, hurricane, flood, wind, hail, even tornadoes. Insurance companies are doing one of three things or all three things. either raising rates, reducing coverage, cutting uh sublims, meaning that if you have a limit on, let's say, uh debris removal, they might say, "Well, we're only going to give you this much." Or they're not selling insurance altogether in that area. And Parametric will help fill in the blanks.

Um and it says here as property underwriters, these are the people who create rates for insurance policies and approve them. They're increasingly concerned and cautious with cat catastrophone risks. Buyers are turning to alternate solutions like parametric to fill gaps and it's a unique alternative to complement traditional insurance. As an example, there was a um municipality, a a city that was uncomfortable with its traditional property sublims, which limited recovery following a hurricane. Solution, the broker designed a parametric policy to what's called top up the policy to fill in some of these gaps and that gives you better uh coverage.

What are the advantages to a parametric policy? Well, coverage is triggered when your video will be back in 8 seconds. In the meantime, remember you have access to live one- on-one consultation, undivided attention of a licensed certified expert in this subject and many others. We want to listen to your story. We want to hear your questions and give you expert advisement of your options. We want to tell you what we know about your situation and what options you have. Now, back to your video. A an event happens. It's not based on the insurance company saying, "Well, your house was damaged or or not." It's simply proximity and intensity of a storm or it's the size of hail. We'll look at that in a minute.

You can clearly define what will and will not pay claims. In fact, you also know the amount of the claim. If you have a traditional policy, you don't know how much you're going to get paid out until they look at the damage. Claim settlement is very, very fast on parametric policies because no adjuster has to come look at the damage to see how much they have to pay. Usually confirmed within days and funds within weeks. It's very flexible. You can change the triggers um enable clients to access coverage in different ways.
Let's look at one example of a parametric policy. This is a hail insurance policy radar based. What happens in the event of a hail storm? We obtain the maximum estimated size of hail calculated by data provider and the payout is found by multiplying the size by the payout. For example, if you have, and I'll make it a little bit bigger here. Um, if you have a um hail that's um 2 in, you get 0%. If it's 2 and a half inches, you get 10%. If it's 3 in, you get 75%. And this is just one example. This is for a solar farm. So, you can create the structure based on your risk.

You can do it based on real est. These are covered industries. real estate uh dealerships, agriculture, solar farms, quote requirements are what's your location, what's your history, and what limit do you want? This can all be done in a very customized manner for your business or for your property. So, if you're finding that you have more risk uncovered than you're comfortable with, look at parametric. Even if you're not sure, you should look at your existing policies to see what it is that you may not be covered for that you wish you did, and you can see if this is a way to backfill that risk mitigation.

Thank you for watching. Remember, you can access live one-on-one personal consultations with a licensed private investigator, a licensed commercial uh insurance broker, licensed certified real estate title examiner, also a certified civil court mediator. So, if you have a need to talk to an expert in any of these fields or even a licensed building general contractor, you can click the link below, actualhuman.com, and arrange a live one-on-one undivided attention with a licensed expert where you can ask any questions, get information about your situation, and we'd be glad to.