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COLUMBIA - Coastal South Carolina residents could see home insurance costs
drop with a bill that received key approval Tuesday in the state House.
The legislation is part of Insurance Director Scott Richardson's response to
insurance rates rising as much as 400 percent in hurricane-prone areas.
Insurers have dumped policies and raised premiums along the coast, leaving
thousands of property owners uninsured or struggling to pay for protection.
State Rep. Harry Cato, R-Travelers Rest, said the insurance-friendly
proposals already have helped stabilize the market. Some insurance companies
that had planned to cancel more policies decided not to, said Cato, chairman
of the House Labor, Commerce and Industry Committee.
The bill, expected to cost the state $6 million, would offer sales tax and
income tax breaks to residents who make their homes more hurricane resistant
with improvements such as storm shutters. It creates a matching grant
program for homeowners to apply for up to $5,000 to upgrade their homes and
requires insurers to give premium discounts for upgrades.
It also would let homeowners put money into tax-deductible hurricane savings
accounts. Residents could use the accounts to offset large deductibles or
forgo insurance altogether and self-insure.
The tax breaks would not apply to vacation homes. Those able to afford a
second home on South Carolina's coast should not receive tax incentives,
Cato said.
The bill, backed by Gov. Mark Sanford, also would give insurers tax credits
for writing full-coverage policies along the coast and double to 60 days the
notice required for homeowners before policies are canceled.
Sanford and Richardson advocated the bill in March when the director
expanded the "wind pool," a state-run insurance program of last resort that
helps provide coverage in areas where private insurers don't offer
protection.
Sanford appointed Richardson, a former insurance company owner, earlier this
year.
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