Verisk launches new programme designed to widen US flood coverage

Verisk, the data analytics provider, has launched a new personal lines flood insurance programme, which is designed to make flood coverage more widely available to homeowners anywhere in the contiguous US.

The ISO personal lines flood programme enables insurers to enter the private flood insurance market by offering coverage options in a template similar to the standard homeowners policy that's already familiar to most consumers.

"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.

Marc Treacy, managing director of flood at ISO, added: "This programme presents a new opportunity for insurers to grow their homeowners book by providing robust flood risk protection to an underserved segment. 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 enables broader and more flexible coverage than the National Flood Insurance Program (NFIP), with wording generally similar to the standard homeowners policy most consumers know. The ISO program lets insurers 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 belowground area.

The rating manual for ISO's new personal lines flood programme 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.

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