# REPLACEMENT COVERAGE FOR U.S. ORGANIZATIONS WITH FLOOD-RELATED CLAIMS
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2016-10-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Prepare for the Unpredictable with Aon Flood Secure Insurance
Meta Description: Learn how Aon Flood Secure can provide replacement flood coverage for organisations with impaired aggregated limits after Hurricane Matthew. Get additional
URL: https://financedigest.com/replacement-coverage-for-u-s-organizations-with-flood-related-claimshtml

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Hurricane Matthew reminds organizations of the benefits of being prepared for the unpredictable

Following the massive flooding in parts of eastern North Carolina and the Atlantic coast, Aon reminds risk managers of Flood Secure, an insurance facility providing replacement coverage to U.S. organizations that have impaired aggregated flood limits on their property policy.

Flood coverage is one of the few aggregated limits found on most property policies. Following Hurricane Matthew, and to mitigate the risk of additional floods going uninsured, Aon Risk Solutions, the global [risk management](http://www.aon.com/risk-services/default.jsp) business of [Aon plc](http://www.aon.com/default.jsp) (NYSE: AON), created an industry-leading flood limit reinstatement facility for its clients.  With Aon Flood Secure, replacement coverage can be provided to organizations with impaired aggregated flood limits.

Aon Flood Secure offers pro-rata pricing for reinstated limits and terms of less than 12 months. It is designed to replace eroded or exhausted flood aggregate coverage and to match existing carrier agreements to provide immediate reinstatement of impaired flood coverage.

Aon Flood Secure can also be secured with a call option. Aon Flood Secure Flex secures flood capacity at a pre-determined nominal cost, providing organizations with greater flexibility as to when or if they decide to reinstate exhausted or eroded flood limits. The nonrefundable call option costs 10-20 percent of the Aon Flood Secure [premium and is based on the limit and policy term](https://www.financedigest.com/no-exam-term-life-insurance-premiums-explained.html "No-Exam Term Life Insurance Premiums Explained").  When an organization decides to trigger the option, the [balance of the Aon Flood Secure](https://www.financedigest.com/balancing-innovation-and-security-within-the-financial-services-industry.html "Balancing innovation and security within the financial services industry") premium is due immediately.

“The economic toll is yet to be fully realized, but experts report that much of the damage may be tied to storm surge and inland [flooding caused by rain](https://www.financedigest.com/ida-loses-punch-levees-hold-but-louisiana-expects-more-rain-and-flooding.html "Ida loses punch, levees hold, but Louisiana expects more rain and flooding") from Hurricane Matthew,” said Rick Miller, U.S. Property Practice Leader of Aon Risk Solutions. “Flood Secure and Flood Secure Flex provide up to $25 million in additional flood limits, both high hazard and traditional. Each [risk is separately underwritten with policy](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation") terms up to one year.”

Flood Secure is not intended as a replacement for National Flood [Insurance Program coverage](https://www.financedigest.com/japan-insurers-in-talks-with-reinsurers-to-resume-coverage-in-russian-waters.html "Japan insurers in talks with reinsurers to resume coverage in Russian waters").  All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any [insurance policy](https://www.financedigest.com/what-type-of-life-insurance-policy-is-right-for-me.html "What Type of Life Insurance Policy Is Right For Me?"). Coverage is [governed only by the terms and conditions](https://www.financedigest.com/uk-government-under-pressure-over-conditions-at-migrant-centre.html "UK government under pressure over conditions at migrant centre") of the relevant policy.


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