Verisk has launched a new personal lines flood insurance program designed to make flood coverage widely available to homeowners anywhere in the United States through its ISO business.
“The floods of recent years have highlighted the inadequacy or complete lack of coverage for many Americans, including those who didn’t think they were at risk for flooding,” said Neil Spector, president of ISO.
The ISO personal lines flood programme assists insurers in claiming a steak of the private flood insurance market; “this program presents a new opportunity for insurers to grow their homeowners book by providing robust flood risk protection to an underserved segment,” said Marc Treacy, managing director of flood at ISO, “innovative insurers can be at the forefront of market disruption with a comprehensive property risk solution that provides needed insurance to new customers and fresh coverage options for existing customers.”
The ISO personal lines flood insurance programme uses wording similar to the standard homeowners policy but enables broader and more flexible coverage than the National Flood Insurance Program (NFIP).
It enables insurers to offer coverages and deductibles with options to include additional living expenses; other structures on the property such as detached garages, fences, and pools; and damage to personal property in a below ground area.
The rating manual for ISO’s new personal lines flood program also takes a fresh look at traditional flood territories.
“Through a combination of models developed by AIR Worldwide and extensive analysis of ISO and NFIP data, ISO has designed a comprehensive and actuarially sound rating structure encompassing every address in the lower 48 states,” added Treacy.
ISO began the state-by-state filing process for its new personal lines flood program in December 2017 and will continue throughout 2018.
