Parametric wind insurance pays out a predetermined amount when wind speeds at or near a covered location reach a pre-agreed trigger threshold, as measured by independent weather stations. Unlike traditional windstorm coverage, there is no claims adjuster, no repair estimates, and no waiting — if the wind hits the trigger speed, the policyholder receives payment within days.

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This coverage is ideal for businesses and property owners in hurricane-prone areas who need immediate cash flow after a major storm to cover deductibles, fund emergency repairs, or bridge the gap while traditional claims are processed. Because payouts are based on objective weather data rather than damage assessments, there is little room for coverage disputes. However, parametric wind insurance is designed to complement — not replace — a traditional property policy, so selecting the right trigger speed and payout amount is key to making sure the coverage fits the policyholder’s actual risk.