AIG Private Client Group, a division of the property and casualty insurance subsidiaries of American International Group Inc. (AIG), announced the beginning of a national roll-out that adds flood coverage to eligible homeowners policies.(a) The first states in which the coverage enhancement has been implemented are Colorado, Illinois and Massachusetts.
AIG Private Client Group will provide flood coverage to properties located in low- to moderate-risk areas – the government-designated B, C and X flood zones. Coverage includes payment for damage to basement finishes and settlement for losses on a replacement cost basis. Furthermore, the new program allows for reimbursement of additional living expenses and responds to a single-location event.
“Last year we created an excess flood program that is written in conjunction with homeowners policies,” said Ross Buchmueller, president, AIG Private Client Group. “The feedback from our brokers reinforced that the risk of flood is a significant concern for our policyholders. It is our responsibility to continue to develop bold, new solutions, particularly ones that close critical gaps in coverage.”
The National Flood Insurance Program (NFIP) was created in 1968 to respond to the rising cost of taxpayer-funded disaster relief for flood victims. Some lenders mandate the purchase of NFIP coverage in high-risk areas that are designated as A or V flood zones.
For those in low- to moderate-risk areas – the B, C and X flood zones -the NFIP developed a preferred program with a simplified rating plan. Despite these efforts, very few residents have reportedly purchased flood insurance.
(a) Insurance is underwritten by member companies of American International Group Inc., and is subject to underwriting review and approval. The description herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Refer to the actual policies for complete details of coverage and exclusions.
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