FAQ

Who insures the policies?

The policies are underwritten by Óptima Seguros, a local Puerto Rican insurer, and fully reinsured by Munich Re, an AM Best A+ rated international reinsurer. An AM Best A+ rating means that the reinsurer's financial health and ability to meet its liabilities has been rated “Superior” by an independent rating agency. The location of this reinsurer in Germany also guarantees that it will not be directly affected by the atmospheric event that is covering our island.

What kind of insurance is this?

Our hurricane microinsurance is parametric, that is, it pays cash according to a measurable event, known as a triggering event, instead of paying for damages that occur. Payment is automatic according to wind speeds and the distance of your property from the center of the municipality. The faster the winds, the more the policy pays, up to the policy's maximum limit.

What address can I use?

You can use any physical address in which you have an insurable interest. It can be the place where you live, work, or own property. Ownership of the place is not required. For example, it can be the rented apartment where you live.

How is my address used?

We use your address to determine the payment amount after an atmospheric event. The greater the impact of the hurricane in your area, the higher payments. Specifically, we pay based on the highest sustained wind speed over land, 25 miles or less from the center of your municipality.

Is there a limit of events covered by the policy?

There is no limit of covered events. However, the maximum amount you may receive during the Coverage Period is the amount specified by the Policy Maximum Limit, regardless of the number of events or the amount of economic loss you have suffered. Your payment amount is determined by your policy's payout table.

Let's take an example of a policy with a $3,000 limit in Luquillo in 2017. The payout for Hurricane Irma in Luquillo would have been $1,050 based on wind speeds in that area and payment table of the policy. This policy would have continued to pay on subsequent events throughout the life of the policy, until the total sum of all payments reached the policy's payment limit of $3,000. For example, in an event like Hurricane Maria, the additional payment would have been $1,950 instead of the expected $2,400 based on the pay schedule, since the policy would have reached its $3,000 limit during its coverage period.

How long do payments take?

You will receive a payment notification within 5 days of the event and you will receive your payment within 10 days of that notification. Our priority is to provide our policyholders with fast and effective help.

How much do the policies cost?

The price of the policies depends on your municipality and the size of the policy you choose. There are municipalities where the cheapest policy with a coverage limit of $1,000 starts at an accessible annual cost of $42 dollars. In the process of creating a policy, we will ask you the necessary questions and will be able to calculate the specific price of your policy.

How are wind speeds determined?

We use data from the National Oceanic and Atmospheric Administration, NOAA, to estimate wind speeds over land for all of Puerto Rico. Using the process detailed at this link, we calculate the highest sustained wind speeds within 25 miles of your municipality. This value is the one used to determine your payment.

Can I buy a policy in someone else's name?

Of course! If you live off the island but have family here, or maybe you have a loved one who is not good with computers, but whose well-being can benefit from a Raincoat policy, you can gift it to them through our system. Make sure that the personal details refer to the insured person.

Why do you need my cell number?

After an event, SMS systems are some of the first to be restored. If your policy is activated, we will notify you of the details by email and text messages so that you are aware of when you will receive your payment.

Until when do I have to request a refund?

You can request a refund within 14 days after your policy was issued. To start a cancellation process, you can contact Raincoat directly at the email hola@quieroraincoat.com.

Is this policy automatically renewed?

No. We will always ask for your consent to renew your policy with Raincoat.

How can I cancel a policy?

If your policy is within 14 days from the date you purchased it, to start a cancellation process you can contact Raincoat directly by email at hola@quieroraincoat.com, through our chat, or by calling 787-333-6360. After 14 days the policy is not cancelable with a refund of premium.

What happens if I have more damage than what my policy covers?

Raincoat is not and is not intended to be a replacement for a property insurance policy that covers direct damage to property. Our policy protects your well-being as an individual and seeks to provide you with cash so that you can better respond to your needs during the emergency.

Is this product approved by the Insurance Commissioner?

Yes. Raincoat is approved by the Office of the Insurance Commissioner of the Commonwealth of Puerto Rico, who, after approving the innovative product for this 2021 hurricane season, expressed:

“Microinsurance and parametric insurance are products that have great potential. They can help cover the needs of the population to protect themselves against risks in a complementary way to traditional insurance. The granting of the license by our Office to Raincoat as the first microinsurance administrator in Puerto Rico is a key moment. It will expedite the development of the market for microinsurance and the distribution of this new financial protection tool to different segments of the population.”

Atty. Mariano Mier Romeu, Insurance Commissioner of Puerto Rico

Do I have to own the property I insure?

No. Raincoat parametric microinsurance is not tied to, nor is it intended to protect, property. Our focus is on protecting your personal well-being and helping you recover from the hurricane.

Is the charge annual or monthly?

The Raincoat policy is paid annually and covers a full calendar year. So if you buy it in the middle of this year's hurricane season, that same policy will also cover half of the next season.

What if I wait for a hurricane to come and buy the insurance days before, does it cover me?

The policy takes 14 days after purchase to activate, which makes it quite difficult to buy a policy for a hurricane that is already on its way and is only days away. Our recommendation is that you buy your policy well in advance.

What is the difference between this insurance and property insurance?

Hurricane property insurance relies on damage and an assessment of the damage in order to issue a payment. What our parametric microinsurance seeks is to ensure your well-being when a Hurricane passes by providing money just days after the event so that you can better respond to the emergency. How much cash our insurance pays depends on the speed of the winds and your coverage limit.