Richardson: S.C. went the ‘right way’ with hurricane law

The South Carolina House of Representatives and Senate recently agreed to changes to coastal omnibus hurricane legislation, which include extending the notice for homeowners whose insurance would be canceled to 90 days during hurricane season.

The measure also increases the notice to 60 days from 30 days during the rest of the year.

Gov. Mark Sanford has praised the bill, pushed by Scott Richardson, his insurance director, as a way to lower skyrocketing insurance premiums in a business-friendly way.

“This is the first legislation in a long time that is very pro-consumer and it should set the South Carolina market in a good position for 10 or 15 years to come,” Richardson said. “It’s also important on a national basis as South Carolina is the first to codify market philosophy — not to mention the response we’re getting from other states asking us how we did it. I think we went the right way.”

The proposal would offer sales and income tax breaks to residents who make their homes more hurricane resistant with storm shutters and other mitigation materials. The breaks would not apply to vacation homes.

Other provisions include allowing homeowners to put money into tax-deductible hurricane savings accounts. Residents could use the accounts to offset large deductibles or forgo insurance altogether and self-insure. Insurers would get tax credits for writing full-coverage policies along the coast.

The law also put into formal effect Richardson’s expansions of the wind pool, a state-run insurance program that helps provide coverage in areas where private insurers don’t offer protection.

Topics Catastrophe Natural Disasters Hurricane South Carolina