American International Group is aiming for more high net worth policyholder business with new coverage for couture and other designer clothing – items than can be worth thousands of dollars.
AIG is offering the insurance through AIG Private Client Group, its division that serves high net worth policyholders. Customers can buy the couture coverage as an endorsement to AIG’s private collections policy. New York and Texas are the initial target markets but plans call for expanding the insurance into additional states over time.
Coverage will apply to couture, ready-to-wear clothing, shoes, handbags, and also vintage/historic clothing. Coverage triggers include damage caused by flood, mold and moths, plus risks typically excluded from a homeowners policy.
Custom, work-in-progress couture and shoes – often hand made – will also get coverage. Clients can also win reimbursement for costs incurred if they remove their couture from home before an impending threat, AIG said. On top of that, the insurance also covers dry cleaning and wardrobe preparation expenses generated by a high-end garment care specialist after a covered loss.
There’s more. AIG Private Client Group has an in-house staff of collection management specialists. For customers who buy this coverage, they’re available year-round to help them preserve the long-term value of collectible garments, shoes and handbags. They can perform such services as vulnerability assessments, emergency planning and referrals to wardrobe preservation specialists.
Ron Fiamma, vice president and global head of private collections for AIG Private Client Group, said that the new insurance offering closes the gaps found in a traditional homeowners policy. He added that the there is a clear customer interest in finding ways to safeguard their couture collections.
“Much like collectors of fine art, vintage cars, or wine, customers who invest in their wardrobes can be quite passionate about their acquisitions,” Fiamma said in prepared remarks.