Hailsure. Just who the “hail” are we?

Weather happened and your property is damaged.  If you believe the claims process will be enjoyable and fair, you landed on the wrong Blog.  You do not need Hailsure.

If you are involved in a business that is impacted by severe weather, you know a better approach to weather insurance is needed.

Hailsure is the marketplace at the intersection of weather, economic damage and insurance.  Hailsure is a weather insurance marketplace.

Members of the Hailsure team combined with creative individuals and companies to design, develop, and implement the first parametric hail insurance program in the world. 

The original business model offered hail insurance for extremely difficult risks in the hail belt.  While remaining focused on hail, our busines model now includes the other significant weather risks. 

Once upon a time, not too long ago, a typical property insurance policy provided full coverage for  weather related damage.  In this not too distant past, the number of fire claims in America exceeded all the weather related claims combined. 

In the past 5 years, weather related (wind, hail, water) claims represent about 5 claims per every 100 policies issued.  Fire and all other claims combined represent about 1 claim per 100 policies.  Insurance companies were pricing were fires.  But 5 time more claims were due to weather. 

Insurance companies debated two choices.  Huge price increases or huge deductibles.  A few years ago they choose both.  But it was not enough.  The weather patterns did not cooperate.  Weather became more severe and more frequent. 

Dramatic weather deductibles are now common. 

Where you have your business determines if you have coverage for weather claims.  If you live in California, you can have a hail or Hurricane deductible of $100.  If you live in Colorado, your hail deductible is equal to the cost of a new roof.  If you live in Florida, your hurricane deductible is higher than the expected damage from the named storm.

In high risk weather regions, deductibles have increased to a level that only provides catastrophe coverage.  If your roof is gone, you pay.  If your house is gone the insurance company will pay part of the loss.

Hailsure provides insurance solutions designed to insure the most likely dollar losses resulting from weather related damage.  Hailsure fills the insurance gap created by the traditional insurance markets abandoning their clients where they most need protection.

In simple terms, Hailsure does not offer you a $10 million hail policy on your $10 million of property with a $500,000 hail deductible.  Hailsure offers the $500,000 policy you actually need.   Hailsure fills the uninsured gap. 

With Hailsure, you buy the coverage you need.

Traditional insurance determines the price for the policy based on past statistics, probability,  future loss and the future cost to repair your property. That is a difficult combination of variable factors to correctly price insurance.  It is easier to just give you a really high deductible.

Hailsure prices the policy based only on the probability of weather event. 

This is commonly referred to as Parametric Insurance. The next blog in this series explains how parametric insurance works.  How is parametric insurance able to provide coverage where traditional insurance companies are abandoning the market.