Tourism Leaders Urge S.C. to Deal with Coastal Insurance Costs

South Carolina’s coastal tourism leaders urged Gov. Mark Sanford to make sure insurance is both available and affordable along the coast, the heart of the state’s $16 billion tourism industry.

“It’s frightening,” said Doug Wendel, chief executive of Burroughs & Chapin Co. Inc. “There’s going to be a lot of blood in the streets of Myrtle Beach if something doesn’t happen.”

Sanford met with 15 top industry officials Tuesday during the state’s annual tourism conference.

Even as the tourism industry and homeowners along the coast have been dealing with rising premiums, some insurers are dropping policies to reduce their risk of hurricane losses.

Wendel asked the governor to push for subsidies or expand the wind pool area where property owners can get last-resort coverage from an association of insurers doing business in the state.

Sanford owns an oceanfront home on Sullivans Island but said expanding the wind pool would shift coastal insurance costs to property owners statewide.

Industry leaders argued taxpayers elsewhere should share in the costs because the coast contributes more accommodation and admission taxes than the rest of the state.

“We’ve got to make sure we don’t choke the golden goose,” said Brad Dean, president of the Myrtle Beach Area Chamber of Commerce.

Sanford suggested the state might allow property owners to put money away before taxes to pay for insurance. By “building up a kitty,” they could have a higher deductible and keep their monthly payments lower, Sanford said.

“You want to make sure that as part of the mix you leave room for the individual to insulate himself,” he said, adding that sweeping regulatory could cause insurers to pull out.

Last week, State Farm announced it will drop about 1,000 policies from Myrtle Beach to Hilton Head Island this spring.

“Clearly something needs to be done, but we need to be careful that we don’t put in plans that cost us down the road,” Sanford said.

Dean said the tourism industry is worried the insurance issue will get tangled in politics in Columbia.

“The worst thing that you can do would be to do nothing,” he said. “It’s like a patient is bleeding to death and the doctors and nurses are arguing about what size bandage to put on.”

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Information from: The Post and Courier,
http://www.charleston.net