BCIC has launched a new Hurricane insurance policy just in time for hurricane season in partnership with Yokahu, an insure-tech company from the United Kingdom, to create a new hurricane insurance product for homeowners and renters.
Reinsurers have left the Caribbean reducing the capacity for insurance companies in Jamaica to take on new customers. With this and other recent developments in the property insurance market, homeowners and renters have seen their premiums skyrocket.
BCIC has launched its new product to provide homeowners and renters with affordable and hassle-free insurance all year round, especially during hurricane season.
This new product is offered online and will be sold directly to customers through the BCIC website. Customers can purchase it for as little as US$60, and premiums go up to US$750.
BCIC said the process for payouts is much different from what one typically expects from an insurance company. There is no claims process or need to show proof of damage to receive a payment. Once the strength of a hurricane rises to approximately a category three or above with wind speeds reaching 74 mph, the customer is automatically paid. Payouts for customers begin at US$160 and go as high as US$10,000.
Many homeowners have found they cannot buy home insurance because local insurers are not taking new customers.
Others have seen the cost of home insurance go up well past their ability to pay. This product is designed to be an affordable policy for those unable to get or afford home insurance, BCIC said.
It can also act as an add-on to an existing homeowner’s policy or cover for renters who want their belongings protected.
Managing Director of BCIC, Peter Levy, is excited about the potential of the product to help Jamaicans feel like they won’t be ‘left out in the cold’ this hurricane season.
“Hurricanes can strike unimaginably, leaving behind a trail of destruction and wreaking havoc on homes and properties. Having your home damaged, which for most people is the greatest monetary investment they will make in their lifetime, is very scary. If someone’s home is damaged, the stress of having to deal with that, compounded by the stress of what can sometimes be a lengthy claims process, we think, is too much to place on the shoulders of our customers,” he said.
Levy believes that with increasingly expensive property insurance, protection for one’s home or belongings is less accessible.
He said this is an inclusive product that helps to ‘cushion the blow’ of premiums in a property insurance market that is out of reach.
He added: “Hurricanes are not an imagined threat in Jamaica. We have decades of evidence showing the consequences of being ill-prepared for hurricane season. Our approach to the market has led us to create a product that is for everyone, and we are proud to be able to have a product that puts the customer first.”
