Aon Launches New Flood Replacement Coverage Product

In the wake of Post-tropical Cyclone Sandy, Aon Risk Solutions, the global risk management business of Aon plc, announced the creation of Flood Secure, a new insurance facility providing replacement coverage to U.S. organizations that have impaired aggregated flood limits on their property policy.

Flood Secure reinstates exhausted or eroded flood limits of liability to help ensure organizations have replacement coverage for subsequent events. Coverage will match existing policy wording and provide immediate reinstatement of a client’s impaired flood limit, including high hazard flood zones, for up to $25 million for any one occurrence/reinstatement term aggregate limit of liability.

Additional limits of liability are available. The facility provides pro-rata pricing for reinstated limits and terms of less than 12 months for major commercial property programs that will renew between January and June 2013.

“Flood coverage is one of the few aggregated limits found on most property policies,” said Rick Miller, chief broking officer, Aon Risk Solutions’ U.S. Property Practice. “Many insureds have potentially impaired aggregates as a result of Sandy. Flood Secure will provide coverage for all flood zones backed by the security and stability of Lloyd’s of London. While organizations may be unsure how their insurance flood limits will be impacted at this time, the facility is here to help ease that concern and provide another option for future coverage.”

Flood Secure is not intended as a replacement for National Flood Insurance Program coverage. Clients should consult their policy for actual details of the replacement coverage.

Source: Aon