Insurers Bring Calm After the Storm as South Carolina Recovery Efforts Begin

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This aerial photo show flooding around homes in the Carolina Forest community in Horry County, between Conway and Myrtle Beach, S.C. The Carolinas saw sunshine Tuesday after days of inundation, but it could take weeks to recover from being pummeled by a historic rainstorm that caused widespread flooding and multiple deaths. (Janet Blackmon Morgan/The Sun News via AP)

The rain has stopped in South Carolina and claims filing and damage recovery are underway even as residents are being told to expect more flooding through the weekend.

The mega storm that hit South Carolina starting Oct. 1 through Tuesday brought extensive damage statewide with some areas receiving more than two feet of rain.

A total damage estimate is still not yet available.

South Carolina Insurance Director Raymond Farmer said no event on record compares to this but the insurance industry and South Carolinia residents will recover.

“No one alive today has ever seen anything like this. Experts are saying this is a 1 in 1,000 year flood – I don’t want to see another. It’s devastating,” he said.

Claims representatives from several insurers representing South Carolina policyholders, as well as from the Federal Emergency Management Agency (FEMA), were on hand at the Catastrophe Claims Center hosted by the South Carolina Department of Insurance in Columbia on Wednesday Oct. 7 and Thursday Oct. 8.

South Carolina storm victims gathered at the Catastrophe Claims Center in Columbia Oct. 7. The “claims village” was organized by the South Carolina Department of Insurance to assist those who suffered damage from the major storm that hit the state starting Oct. 1 (Photo courtesy of SCDOI)

Farmer’s agency organized the “claims village” to help citizens get started on the recovery process and answer any questions they have. Companies and service organizations on site include: Allstate, Independent Insurance Agents and Brokers of South Carolina; Nationwide; USAA; South Carolina Farm Bureau Mutual Insurance Co.; South Carolina Insurance News Service; State Farm; and St. Johns Insurance Co..

“We need to be here for our citizens and we need to be out in the community when something like this happens,” said Farmer.

Turnout was steady Wednesday, Farmer said, as storm victims worked with those who came out to assist.

“The mood is ‘This has happened – how do I move on from here? What does my insurance cover and what does it not cover?'” Farmer said.

On the auto side, Farmer said there will be thousands of auto claims that are covered by comprehensive coverage. State Farm, the largest personal auto and homeowners insurer in the state, said Tuesday approximately 1,130 auto claims had already been filed.

Flood insurance claims will not be as high as flood is excluded on standard homeowners, renters and business insurance policies. The Insurance Information Institute (I.I.I.) reported that as of July 31, South Carolina had 199,540 National Flood Insurance Program policies in force with written premiums totaling $133.4 million covering $50.8 billion in property and contents.

“It appears we are going to have a lot of uninsured damage in the Columbia area. While some consumers had flood insurance, many that had damage were not in high risk flood areas,” said Frank Sheppard, president of the Independent Insurance Agents and Brokers of South Carolina (IIABSC).

FEMA said it expects many flood insurance claims will be uninsured but the following South Carolina counties were approved for federal disaster aid as of Oct. 5 and more could be added: Berkeley, Charleston, Clarendon, Dorchester, Georgetown, Horry, Lexington, Orangeburg, Richland, Sumter, and Williamsburg.

FEMA representatives were available at the claims center to help residents with the financial assistance recovery program, which can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs to help individuals and business owners.

“Agents are reporting a lot of inquiries about damage though the insured understands they didn’t have flood insurance,” said Sheppard.

Estimates of the total damage are still not available, Farmer said, especially with the possibility for more damage and many more claims still looming. But he expects to begin a data call from insurers in the state by the end of the week.

Allstate spokesperson Daniel Groce said it’s too soon for the company to know the total number of claims it expects, but adjusters will continue to work with customers in affected areas to help guide them through the claims process.

“Our thoughts are with those impacted by the storm in South Carolina, and our National Catastrophe Team has mobilized resources to help policyholders affected begin the rebuilding process as quickly as possible,” Groce said. “We’re encouraging all residents impacted by the storm to begin the claims process with their insurance carrier.”

Farmer expects there will be significant commercial claims as well.

“There is a lot of commercial exposure here. A lot of businesses are still not open yet because our water system has been compromised and many of those who have water are still under a boil water alert,” he said.

Liberty Mutual and AIG were the largest commercial insurers in the state in 2014, according to the Insurance Information Institute (I.I.I.), with 5.7 percent of the market share and over $183 million in direct premiums written. Liberty Mutual declined to comment and AIG didn’t respond to an interview request.

The South Carolina Emergency Management Division said Wednesday that though water levels across most of the area are gradually receding, river flooding will continue through the weekend for Low County rivers. The Edisto River will see major flooding near Givhans Ferry through at least Saturday. SCEMD also reported to CNN that at least 11 dams have failed since Saturday and another 35 dams were being monitored.

Residents in low lying areas were urged to follow the advice of local officials to avoid getting caught up in flood waters.