Patent ID: 8380617

Claim:
A computer-based method for providing an owner of a defined parcel of real property upon which physical improvements have been made with a hedge against monetary loss to said physical improvements from the occurrence of a measurable, specific physically catastrophic event, including the steps of: establishing a computer having a processor and a memory; establishing in said computer memory a digital definition of a parametric trigger in the nature of the occurrence of a specific physically catastrophic event related to said defined parcel of real property upon which physical improvements have been made; calculating in said computer processor connected to said memory the increase in mortgage interest rate above market interest rate to be paid by an owner of said defined parcel of real property who borrows money from a lender as evidenced by a written loan agreement and secured by a mortgage on said defined parcel of real estate based on said calculated probability of said specific physically catastrophic event occurring; preparing a written loan agreement between said owner and said lender and a mortgage on said defined parcel of real property incorporating said calculated increased interest rate; including in said loan agreement and said mortgage a provision wherein said lender terminates the obligation of said owner of said defined parcel of real property to repay at least a portion of the money remaining to be paid under said loan agreement upon the occurrence of said parametric trigger; and based on the occurrence of the parametric trigger, the lender forgiving a predetermined amount of the mortgage based on the provision in the mortgage.