AIG Private Client Group, a division of American International Group, has introduced excess flood cover to support insureds in the event of catastrophic loss caused by flood.
The new cover is aimed at homes with a replacement cost of greater than $1m (£628,000). It is estimated that 400,000 US homeowners reside in properties valued at $1m or more.
In the US, despite floods being the most common natural disaster, flood damage is excluded under homeowners policies.
Cover is generally made available through the US National Flood Insurance Program (NFIP), which offers maximum limits of $250,000 for dwelling coverage and $100,000 for personal contents.
"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."
