Sola Parametric Insurance: 4 Positive Benefits for Homeowners
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THE BUNDLEBEE BUZZ
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Your El Paso Insurance Expert bundlebeeagency.com |
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Your Insurance Expert
40+ Years Experience
80+ Carriers 4.8★ Google Rating 11125 La Quinta Pl
El Paso, TX 79936 BLOG #94
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A New Approach to the Wind & Hail Deductible Gap
A percentage-based wind and hail deductible can leave homeowners with thousands of dollars to pay before their primary homeowners insurance begins paying a covered claim.
For example, a 2% wind and hail deductible on a $300,000 insured home equals $6,000. As a result, a homeowner may need a large amount of cash after a storm.
Homeowners may turn to contractor financing, city grants, or a HELOC for help. However, these options usually come into play after the storm.
Sola offers a different approach. It provides supplemental parametric coverage that can provide money after a qualifying weather event.
What Is Sola Insurance?
Sola is a parametric supplemental home insurance policy backed by Lloyd’s of London. Sola works alongside your existing homeowners policy rather than replacing it.
Traditional property insurance often requires an adjuster to review the damage. In contrast, Sola uses verified National Weather Service and NOAA weather data to determine whether a weather event meets the policy’s trigger.
When a weather event meets that trigger, Sola can activate the parametric coverage. According to the BundleBee guide, Sola can direct-deposit qualifying payouts within days.
In addition, the BundleBee guide states that Sola claims do not report to the C.L.U.E. database.
Sola may cover eligible site-built homes, vacation properties, and manufactured or mobile homes. Therefore, Texas and New Mexico homeowners with percentage-based wind and hail deductibles may want to ask about this option.
Introduced by BundleBee Insurance Agency · El Paso, TX · 915-591-0075
The Wind & Hail Deductible Problem
Many homeowners have wind and hail deductibles based on a percentage of their home’s insured value instead of a flat dollar amount.
Therefore, the amount you may need to pay can grow as your home’s insured value increases. A 2% deductible may sound small until you convert that percentage into dollars.
The Deductible Gap Sola Can Help Cover
| $250,000 home · 2% wind/hail deductible | $5,000 |
| $300,000 home · 2% wind/hail deductible | $6,000 |
| $400,000 home · 2% wind/hail deductible | $8,000 |
✓ Sola can help close this gap after a qualifying weather trigger.
Sola Parametric Insurance at a Glance
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Lloyd’s
Backing carrier for Sola coverage
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NOAA
Weather data helps determine qualifying triggers
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Days
Sola aims to pay quickly after a qualifying event
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Zero
C.L.U.E. reporting for Sola claims
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How Does Parametric Insurance Work?
Weather Data Activates the Trigger
Traditional homeowners insurance generally requires an insurance company to review the claim. For example, an adjuster may inspect your property, assess the damage, review the repairs, and determine payment under the policy.
Sola works differently. Instead of using the amount of damage to your property as the trigger, Sola monitors verified weather data for your location.
For example, the trigger may consider hail size, duration, or wind speed. If the weather event meets the policy’s trigger, Sola activates the parametric coverage.
As a result, Sola does not require an adjuster to inspect your property before activating the parametric payout.
4 Positive Benefits of Sola Parametric Insurance
Benefit #1 — Helps Close the Deductible Gap
First, Sola can provide cash after a qualifying hail or wind event. Therefore, the payout can help a homeowner handle the deductible on the primary homeowners policy.
Instead of first searching for a HELOC, grant, or contractor financing, a qualifying homeowner may already have supplemental coverage for this expense.
Benefit #2 — Fast Payout After a Qualifying Event
Next, parametric insurance removes several steps found in a traditional property claim. Sola does not require an adjuster visit to determine whether the weather trigger occurred.
As a result, the BundleBee guide says Sola can direct-deposit a qualifying payout within days after confirming the weather event.
Benefit #3 — Sola Claims Do Not Report to C.L.U.E.
In addition, the BundleBee guide states that Sola claims do not report to the C.L.U.E. database because Sola does not handle them as traditional property-damage claims.
Therefore, a Sola payout itself does not create another C.L.U.E. claim entry.
Benefit #4 — Works With Several Types of Homes
Finally, Sola can cover several types of eligible properties. According to the BundleBee guide, Sola may cover site-built homes, vacation or secondary properties, and manufactured or mobile homes.
Because of this, homeowners across El Paso and Southern New Mexico may want to ask whether their property qualifies.
The BundleBee Sola Strategy
Review Your Primary Deductible, Add Sola, and Compare the Numbers
Some homeowners choose a lower deductible because it reduces what they may need to pay after a loss. However, a lower deductible may also come with a higher premium.
BundleBee can review whether raising the primary wind and hail deductible could lower the primary policy premium. Then, Sola may help cover the larger deductible gap after a qualifying weather event.
For example, the BundleBee guide compares moving from a 1% to a 2% deductible on a $300,000 home. However, actual premium savings and Sola costs depend on the property and policy. Therefore, BundleBee can run the numbers before a homeowner makes a decision.
Traditional Deductible Options vs. Sola
Both approaches can help a homeowner deal with storm costs. However, they work at different times and in different ways.
Without Sola
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✓ With Sola
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Who Should Ask BundleBee About Sola?
Sola may not fit every homeowner. However, several types of property owners may want to ask BundleBee about the coverage.
✓ Homeowners With a Percentage Wind/Hail Deductible
First, homeowners with a 1% or 2% wind and hail deductible should calculate the actual dollar amount. If paying that amount after a storm would be difficult, Sola may be worth reviewing.
✓ Homeowners Who Want to Review Their Premium Strategy
Next, homeowners who want to explore a higher primary deductible can compare possible premium savings with the cost of Sola coverage.
✓ Manufactured and Mobile Home Owners
In addition, the BundleBee guide says Sola may cover manufactured and mobile homes on HO-7 policies. Therefore, owners of single-wide, double-wide, or triple-wide homes may want to ask about eligibility.
✓ Homeowners Concerned About C.L.U.E. History
Homeowners who already have claim-history concerns may also want to learn about parametric coverage. According to the BundleBee guide, Sola payouts do not create additional C.L.U.E. entries.
✓ Vacation and Secondary Property Owners
Finally, Sola may also cover eligible vacation and secondary properties. As a result, owners can ask whether supplemental parametric coverage fits their property and deductible.
Ask BundleBee About Sola Today
Ask BundleBee to review your current wind and hail deductible, check Sola availability for your property, and compare the numbers for your home.
Frequently Asked Questions About Sola
What is Sola insurance and how does it work?
Sola is supplemental parametric home insurance. The policy uses verified weather data instead of an adjuster’s damage estimate to determine whether an event meets its trigger. Therefore, a qualifying wind or hail event can activate the Sola payout.
Does Sola replace my homeowners insurance?
No. Sola supplements your primary homeowners policy. It does not replace the main policy or cover the full cost of repairs. Instead, Sola can provide cash to help with the primary policy’s wind and hail deductible after a qualifying event.
How quickly can Sola pay after a qualifying storm?
According to the BundleBee guide, Sola can provide a qualifying payout within days after confirming the weather event. However, exact timing depends on confirmation of the weather data.
What if my home has little damage after the weather trigger?
Parametric insurance uses the qualifying weather event rather than the exact amount of damage to the individual property. Therefore, your actual property damage may be higher or lower than expected when the trigger occurs.
On the other hand, a storm may damage your property without producing a Sola payout if the event does not meet the policy’s specific trigger.
Does a Sola payout appear on a C.L.U.E. report?
According to the BundleBee guide, Sola does not report its payouts to the C.L.U.E. database because Sola does not treat them as traditional property-damage claims.
Is Sola available in Texas and New Mexico?
The BundleBee guide states that Sola is available for eligible properties in Texas and New Mexico. BundleBee serves El Paso and Southern New Mexico and can check whether coverage is available for a specific property.