The event and the payment are defined in advance
A parametric contract ties a set payment to a specified event measurement. The contract identifies the trigger, the payment and the source used to verify that the event met the conditions. Payment is not simply a calculation of the policyholder’s actual repair bill.
A loss and a qualifying trigger can differ
The difference between actual loss and payment is called basis risk. A homeowner could experience damage without the trigger being met, or receive a payment that does not match the loss. Understanding that gap is central to evaluating the concept.
Read the details together
A useful review looks at the complete proposed contract. A simple demonstration cannot establish what a policy would pay.
- The event measurement, geographic area and period that apply.
- The verification source and procedure if data is unavailable or disputed.
- The payment calculation, maximum amounts and exclusions.
- Eligibility, premium, policy period and the named insurer.
- How the product relates to any existing homeowners coverage.
A1 Ember’s proposed offering remains in development
The trigger, verification method, payment structure, insurer, and complete product terms have not been established. Examples on this site are educational; they do not quote coverage or determine whether a property would qualify.
Before any future offering, the responsible insurer, operating roles, applicable authorizations, eligibility, and complete terms would need to be confirmed. Home hardening work and potential discounts on an existing policy are separate from this proposed product.