The California Department of Insurance has approved a new private flood insurance product provided by American National Property and Casualty Company.
"Flood insurance may be the only product that stands between you and a crippling financial loss," said Insurance Commissioner Dave Jones. "California communities have been ravaged by historic floods. I urge consumers to consider flood insurance to protect their most valuable assets."
American National's flood insurance program is a new entry into the private flood insurance market in California and does not replace the National Flood Insurance Program, which currently provides the majority of flood coverage written in the state.
This new residential private flood insurance program offers consumers a number of coverage features, including residential building property, personal property or contents, debris removal, and additional living expenses ("ALE") or lost rents. The policy term is 12 months.
"Providing consumers with more choices may lead more residents to consider flood coverage," added Commissioner Jones. "Many areas of California are subject to flooding from severe storms or heavy rains. I encourage more insurers to consider entering this market."
Last October the department approved a private flood insurance product by Homeowners Choice Property and Casualty Insurance Company. Homeowners Choice also covers residential building property, personal property or contents, debris removal, and ALE. The company is offering limited policies to homeowners and renters whose properties have had no flood claims in the last six years.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].