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COLUMBIA — The day before the start of hurricane season, the Senate took
steps to shore up South Carolina's coastal insurance market, including
making part of a recent wind pool expansion permanent.
In amendments to a bill that passed the House earlier this month, the Senate
proposed solidifying the wind pool expansion that took effect March 30. The
expansion moved the line of last resort insurance to include parts of James
and Johns islands. However, the Senate did not make permanent an additional
expansion that takes effect today and includes parts of Mount Pleasant up to
U.S. Highway 17.
Sen. Chip Campsen, R-Isle of Palms, said that if the bill becomes law, it
will provide relief to coastal residents, but other fixes can't be
legislated.
"I think it will in the long run make a difference," Campsen said. "But
people do need to understand as well really the two driving forces are the
law of nature and the law of supply and demand."
The Senate gave the legislation key approval Thursday and agreed to give it
a perfunctory final reading today. It will then go back to the House.
The foundation of the 53-page bill is offering incentives to both residents
and insurance carriers, including tax credits for those who make their homes
more hurricane resistant and to companies that provide full coverage to
coastal residents. Gov. Mark Sanford said the market-based incentives are
key to a solution that increases competition and ultimately drives down
premiums.
The Senate proposals came in addition to the earlier expansions to the wind
pool, which was created to provide insurance in hurricane-prone areas where
coverage is generally not available for a reasonable cost from individual
carriers.
The bill now also requires companies to give property owners 90 days notice
if their policy will not be renewed and the expiration falls within
hurricane season. Hearings also will have to be held annually to update the
public.
House Speaker Bobby Harrell, R-Charleston, said legislation can't wait.
"I expect a very strong effort to get it finished next week," he said.
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