Insurance and reinsurance broking giant Aon has launched a flood insurance replacement product for those organisations that have been hit by flooding related to hurricane Harvey and have impaired or exhausted their coverage limits on property policies.
Aon Risk Solutions, Aon plc’s global risk management business, has created a flood limit reinstatement product for its clients to meet the urgent need of organisations hit by Hurricane Harvey flooding and to mitigate the risk of organisations being uninsured for floods that occur in the future.
Flood insurance coverage is one of the few aggregated limits found on most property policies, so can be eroded or impaired after a major loss event leaving companies and other organisations lacking protection.
Aon Flood Secure will provide pro-rata pricing for reinstated limits and terms of less than 12 months for subsequent or future events, the broker said. Designed to replace eroded or exhausted flood aggregate coverage, the Flood Secure product will match organisations existing carrier agreements to reinstate impaired flood coverage.
“The impact to Texas and the Gulf Region is already very significant and the entire impact is yet to be fully realized from Hurricane Harvey,” commented Rick Miller, U.S. Property Practice leader of Aon Risk Solutions.” Aon Flood Secure is designed to provide limits of $25 million or more through top rated global insurers and can include high hazard flood zones. Each risk will be separately underwritten with policy terms up to one year.”
The product is not a replacement for NFIP coverage, Aon notes.
