SC. Insurance Director Loses Property Coverage

September 6, 2007

Add the director of the South Carolina Department of Insurance to the thousands of coastal homeowners who have lost property insurance since Hurricane Katrina.

Scott Richardson, who lives on Hilton Head Island, was notified three weeks ago that his policy would be dropped.

Following Katrina two years ago, premiums rose as much as 400 percent in hurricane-prone areas, and many insurers stopped writing coverage.

Richardson now finds himself shopping for insurance.

“I guess it just proves nobody’s immune. If I’m not immune, then nobody is,” said Richardson, who was appointed to head the Insurance Department in February.

Richardson may have to join the South Carolina Wind and Hail Underwriting Association, known as the wind pool. In July, the department announced rate increases averaging 35 percent.

“I might be in the wind pool before you know it,” Richardson said. “I get to try a little of my own medicine.”

The wind pool provides last-resort coverage in areas where other insurers have stopped writing policies. Florida’s program created three years ago attracted 1.3 million customers and became the state’s largest property insurance provider.

Information from: The Beaufort Gazette,

http://www.beaufortgazette.com

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Latest Comments

  • September 15, 2008 at 7:53 am
    joe golden says:
    I had a policy with united insurance of america ,had roof damage. my local representative told me to get my roof fixed ,that they would take care of me. I got two estimates.on... read more
  • September 7, 2007 at 12:08 pm
    Paul Joice says:
    I guess if you can afford to live on Hilton Head Island and choose to "dare" fate, you can probably also afford to pay the freight for wind and flood exposure that you have ex... read more
  • September 6, 2007 at 2:53 am
    adj says:
    they didn't deny him coverage, that is a decision made during the claim process. His carrier made a business decision to minimize their risk, and chose not to renew his polic... read more
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