Parametric hail insurance
Renewable Guard
Approach
Parametric Insurance is a flexible, unique solution designed to protect the developer’s balance sheet in an increasingly hardening property insurance market.
Traditional project level builders risk and operational all risk insurance continue to protect the financial institutions, lenders, and tax equity, but what about the hidden costs borne by the developer. The uninsured and underinsured gaps in traditional coverage exposes the developer to significant financial loss in the event of a major hail event. Limitations to traditional insurance might include:
– Sublimits for hail that might be less than 20% of total replacement cost
– Deductibles for hail losses are often much higher, quickly entering into the millions of dollars for catastrophic losses on utility scale projects.
Innovative Solution
Parametric insurance is an innovative type of policy protecting developers against the serious financial impact of a hailstorm.
Simple Coverage
Coverage is “triggered” when a measurable event occurs which exceeds a set threshold; in this case hail over a certain diameter.
Advanced tools
Hail Trigger – Hail size is measured by an independent weather data provider through use of advanced 3D radar, an onsite hail station, and a series of weather algorithms. Payout is determined by the size of the largest hail that falls on the developers project site.
Renewable Guard continues to provide cutting-edge products to protect renewable energy developers of solar/wind/energy storage systems and more.
Renewable Guard is now the exclusive provider of parametric hail insurance to the renewable energy industry.
See the benefits
Flexible Terms
e.g. variable coverage limits, hail size triggers
easy integration
Easy Integration into the developer’s existing coverage. Claims payment can be applied to physical damage, deductible reimbursement, loss of revenue/delay in startup, and more.
Innovative solution
Payment within 7 – 10 business days, without the requirement of traditional on-site claims adjustment.
How it works
01
Step 1 – Complete An Online Quote Request
Complete Renewable Guard’s online quote request form. The project site is modeled for hail probable loss and terms are provided within 2 business days.
02
Step 2 – Install Hail Monitoring
An independent third-party provider installs a compact onsite hail monitoring station at the project site for monitoring and measurement.
03
Step 3 – Payment sent directly to the developer
In the event of a claim, payment is sent directly to the developer—no need for on-site claims adjustment.
Frequently asked questions
WHAT IS PARAMETRIC INSURANCE?
It is an insurance policy where coverage is “triggered” when an event occurs. The event is something that can be measured. In a Parametric Hail policy, hail size is measured.
What is Parametric Insurance?
It is an insurance policy where coverage is “triggered” when an event occurs. The event is something that can be measured. In a Parametric Hail policy, hail size is measured.
WHAT IS THE “TRIGGER” IN A HAIL PARAMETRIC POLICY?
The trigger for coverage and payout is the “size” of hail that falls on the project site. The property boundaries are geo coded. The largest hail that falls on the property is the policy Trigger.
HOW IS THE HAIL MEASURED?
The hail is measured by use of 3-D radar, an onsite hail station and a series of weather algorithms which utilize multiple data sources including the National Weather Service.
CAN I TRUST THE MEASUREMENT?
Under the traditional policy, you trust the insurance company to tell you how much they will pay you. With the parametric policy, an independent weather data provider determines the hail size. The hail size determines the payout. It is very important that the independent provider is separate from the insurance carrier and the onsite hail station.
We use CoreLogic as the weather data provider. CoreLogic measures every hail event in every part of America every day. They do not know if you bought a policy and they do not know what limit you bought. This independent third- party data provider is the key to an unbiased claim payment.
WHAT IS THE DIFFERENCE BETWEEN ECONOMIC DAMAGE TO THE PROJECT OWNER AND DAMAGE TO THE PROPERTY?
A simple example using a 100 MW solar project with $100M in total insured values and a $20M hail sublimit can be used to illustrate the difference. The operational project level insurance policy would typically carry a 5%/$250K minimum hail deductible. On a $20M hail loss, the project owner would pay $1M in deductible to repair their project. There is also the waiting period deductible on business income which would be in addition to this $1M.
The damage to the project is $20M. The project owners economic loss for their property damage deductible alone is $1M. Is this $1M deductible the only economic loss to the developer? NO.
The traditional policy also has limits on the following and the loss might exceed these items:
1) Demolition and Debris Removal
2) Expediting Expense
3) Increased Cost of Construction
The Parametric Policy has NO Deductible and will indemnify you (up to the policy limit) for the hail deductible and the lost Business Income and Extra Expense due to down time.
The Parametric Policy has no “other insurance clause” meaning the limits you purchase are not diminished by the project’s traditional insurance policy limits.
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