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South Carolinians Need to Check Insurance Before Hurricane Season Begins
May 4, 2009
South Carolina Law Enables Homeowners to Save Money on Insurance
FOR IMMEDIATE RELEASE
Allison Dean Love
803-252-3455 or cell phone 803-413-1044
alove@scinsnews.com
Columbia, S.C. – May 4, 2009 – The 2009 hurricane season begins June 1. Even with the predictions of the number of named storms expected to form this year, no one can tell exactly where or when the next hurricane will strike. The South Carolina Insurance News Service encourages home and business owners to be prepared and have the correct insurance in place.
Hurricane Hugo caused $4.2 billion in insured damage in 1989 ($7.3 billion in 2008 dollars) and ranks as the seventh most costly hurricane in U.S. history. South Carolina now ranks eighth nationally in the value of coastal property with $200 billion in insured property along our coastline. With increased growth and development, the population in most of South Carolina’s coastal counties has doubled since Hurricane Hugo. The cost of construction and labor has also increased.
“The key is having the correct insurance coverage in order to repair, rebuild and replace your home and your personal possessions. South Carolina law offers homeowners ways to save money through insurance discounts, tax credits and catastrophe savings accounts,” says Allison Dean Love, executive director of the South Carolina Insurance News Service.
In 2007, the South Carolina General Assembly passed the Omnibus Coastal Property Insurance Reform Act, a market-based law to help homeowners by increasing the availability of private insurance. Many new insurance companies have come to South Carolina since the law was passed. A few key aspects of the law include:
Catastrophe Savings Accounts – The new law allows insurance policyholders to set up catastrophe savings accounts to set money aside, state income tax-free, to pay for qualified catastrophe expenses such as an insurance deductible or other uninsured costs associated with a hurricane, flooding or windstorm event. The account must be labeled as a “catastrophe savings account” and can be established at any state or federally chartered bank in an interest-bearing account. Depending on the amount of your insurance deductible, you can contribute up to $15,000. If your home is self-insured, you can contribute up to $250,000 or no more than the value of the home. You can save up to 7 percent times the amount in the account (less $448) on your taxes.
Income Tax Credits – The legislation also provides tax credits for property owners who purchase building supplies used to make their homes more storm resistant to hurricanes, flooding or catastrophic windstorm events. The new law also allows tax credits for lower income property owners who pay more than 5 percent of their incomes toward insurance premiums.
Storm Risk Mitigation and Premium Discounts – The law requires private insurers to give premium discounts to homeowners who have made their structures more storm resistant. Some examples of qualified mitigation improvements are storm shutters, roof tie downs and other actions taken to reduce the amount of a loss in a windstorm.
Cancellation and Non-Renewal of Insurance Policies - The law also made changes to cancellation and nonrenewal of insurance policies by increasing the amount of time insurance companies have to notify policyholders of a cancellation or non-renewal to 90 days notice.
For fact sheets on “Preparing for Hurricane Season,” “Coastal Homeowners’ Insurance,” and a summary of the law, visit the Resource Center at www.scinsurance.net.
For more than 30 years, the South Carolina Insurance News Service, a nonprofit organization, has been providing free insurance information to consumers and the media about property and casualty insurance issues. The News Service is funded by insurance companies doing business in South Carolina.
For more information, contact the South Carolina Insurance News Service at 803-252-3455 or use our contact form.
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