Wind Pool Expansion Provides Short- and Long-term Benefits

The South Carolina Department of Insurance has heard you. Now, let’s see if the homeowners insurance industry follows suit.

With last week’s announcement by state Director of Insurance Scott Richardson that South Carolina’s coastal “wind pool” territory will be expanded yet again, another important step has been taken in restoring a sense of order to the ongoing issue of skyrocketing homeowners insurance premiums.

In the short term, the measure will provide immediate relief for property owners whose wind and hail damage coverage has either been cancelled or prohibitively restricted in recent months by their private insurance providers. For the longer haul, the move has been praised by many local officials as a pragmatic approach that will provide incentive for private insurers to restore such coverage to the area, with renewed availability and competition ultimately driving costs down to more reasonable levels.

The graphic in Thursday’s Sun News article shows the basic breakdown of how the wind pool expansion now plays out. Reflecting many Grand Strand residents’ concerns that those who live farther away from the coastline shouldn’t have to pay the same rates as oceanfront dwellers, the expansion now presents two zones. Zone 1 comprises the previous wind pool area directly along the coast, while the new Zone 2 (basically extending to the Intracoastal Waterway and, in some cases, beyond) will offer wind pool coverage at rates approximately 20 to 25 percent lower than in Zone 1.

Over at the South Carolina Wind and Hail Underwriting Association Web site, a “Property Location Eligibility Check” page allows you to enter your home address and get a quick answer as to whether you’re eligible for expanded wind pool insurance coverage. Maps for Horry, Georgetown, Charleston and Beaufort county coverage are also included on the Association’s territory expansion page, and their Q & A page also provides answers to the most commonly raised questions throughout this process.