Common Questions & Answers

Parametric insurance is a new form of risk management that covers the probability of a specific event happening. If a parameter that is correlated to a specific event exceeds a pre-defined threshold, then the policy pays out a pre-defined amount. For example, if the wind speed (the parameter that is correlated to the potential property damage of a hurricane) exceeds 111 mph (the pre-defined threshold), the policy pays the customer $5,000 (the pre-defined amount).  

Parametric insurance emphasizes objectivity, ease of use and speed of payment but does not indemnify the actual losses incurred. 

Parachute is available for all residential properties, including single family homes, condominiums, apartments and mobile homes. The only condition is that you own or rent the property. 

If you live near the Atlantic Ocean or the Gulf of Mexico, your home insurance policy most likely includes a high hurricane deductible. The policy most typically excludes damages from flooding and many other items. And if you have to file a claim, you often have to wait months to receive any payout. 

The benefit of Parachute’s product is that it has very broad coverage and no deductibles. You can use the payment to cover any of your damages related to the hurricane, whether they are caused by strong winds, heavy rain or flooding. This can include repairs to your house, replacement of damaged items, extra living expenses or tree removal costs. The second benefit is that you will receive the cash quickly. Parachute gives you the emergency cash you need to get through the aftermath of a hurricane and to recover quickly. 

We are vigorously working to launch Parachute across the U.S. Stay tuned and sign-up for our waitlist here to get informed when Parachute is available in your area. 

The benefit of Parachute’s product is that it has very broad coverage and no deductibles. You can use the payment to cover any of your damages related to the hurricane, whether they are caused by strong winds, heavy rain or flooding. This can include repairs to your house, replacement of damaged items, extra living expenses or tree removal costs. The second benefit is that you will receive the cash quickly. Parachute gives you the emergency cash you need to get through the aftermath of a hurricane and to recover quickly.

The Saffir-Simpson Hurricane Wind Scale is a rating system based on a hurricane’s maximum sustained wind speed. The ratings go from 1 for the weaker hurricanes to 5 for the strongest hurricanes. This scale is widely used to estimate the potential property damage by a hurricane. However, it does not take other potentially deadly hazards such as storm surge, rainfall flooding, and tornadoes into account. 

Check this link for further information: https://www.nhc.noaa.gov/aboutsshws.php 

While all hurricanes produce life-threatening winds, hurricanes rated Category 3 and higher are known as “major hurricanes”. These hurricanes have sustained winds of 111 mph or higher. Major hurricanes can cause devastating to catastrophic wind damage and significant loss of life simply due to the strength of their winds.