How to Read a Dec Page for Parametric Opportunities

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5 min read

What to look for on every dec page:

1. Named storm or wind deductibles

If your client's property policy has a separate wind or named storm deductible (common in coastal markets — often 2–5% of insured value), that's a gap. A parametric trigger can pay the deductible amount automatically when the storm threshold is met.

2. Business interruption sublimits

Many BI extensions have sublimits far below the property limit — and require a "covered loss" at the insured premises before they activate. If the client's revenue drops because of weather-related customer avoidance (no damage), BI won't pay. Parametric will.

3. Waiting periods

BI policies typically have a 72-hour waiting period before coverage kicks in. Parametric has zero waiting period — payout triggers the moment the weather threshold is crossed.

4. Flood exclusions

Most standard commercial policies exclude flood. NFIP provides limited BI coverage. A parametric precipitation trigger fills the gap.

5. Agricultural exclusions

General commercial policies exclude crop loss and agriculture-related revenue impacts. Parametric drought and freeze triggers are purpose-built for this.

The conversation opener:

"I was reviewing your dec page and noticed your named storm deductible is $150,000. That means before your property coverage kicks in after a hurricane, you're writing a $150,000 check. There's a product that eliminates that exposure — can I show you how it works?"


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