AIG Private Client Group, a division of the property and casualty subsidiaries of American International Group, Inc. (AIG), has introduced Excess Flood Coverage* to support insureds in the event of catastrophic loss caused by flood.
Aimed at homes with a replacement cost of greater than $1 million, the AIG Private Client Group Excess Flood program provides high limits of capacity. Its coverage follows the policy provided by the National Flood Insurance Program (NFIP), offering replacement cost coverage up to the amount specified on the individual policy for dwelling coverage; contents of the dwelling are insured based on an Actual Cash Value basis.*
The new Excess Flood program offered through the AIG Private Client Group is currently available in Arizona, California, Florida, Georgia, Hawaii, Maine, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and Washington, D.C. Plans are for more states to be added in the near future.
According to the Federal Emergency Management Agency (FEMA), floods are the most common natural disaster in the U.S.(1) Typically, flood damage is excluded under homeowners policies and coverage is generally made available through the NFIP, with maximum limits available of $250,000 for dwelling coverage and $100,000 for personal contents. But for the more than 400,000 U.S. homeowners residing in properties valued at $1 million or more(2), NFIP may not be sufficient.
“Many homeowners mistakenly assume that flood insurance is included in their homeowners policy, or that the NFIP coverage will sufficiently provide for flood repair costs,” said Ross Buchmueller, president, AIG Private Client Group. “We have created a policy that specifically supports rebuilding efforts for high-valued properties damaged by flood. This new policy simplifies the claims settlement process and helps our clients manage risks that have been traditionally ignored by the homeowners insurance marketplace.”
AIG Private Client Group’s Excess Flood program, when coupled with a homeowners policy from an AIG member company, can also help resolve claims handling conflicts. For example, after a major storm, such as the recent Hurricane Claudette, there may be confusion as to whether damage to a home is caused by wind (covered by homeowners insurance) or flood. The best way to reportedly protect high-valued coastal properties is for Excess Flood Coverage to be purchased, with the same insurer providing coverage for both wind and flood.
For more information, visit the AIG Private Client Group Web site at www.aigpcg.com.
(1) According to www.fema.gov/nfip/risk.shtm , May 13, 2003
(2) U.S. Census Bureau, Census 2000 results
Was this article valuable?
Here are more articles you may enjoy.