Director Scott Richardson and staff from the South Carolina Department of Insurance will meet with Charleston area residents to discuss coastal insurance issues on June 12 to discuss the status of the state’s coastal insurance market place.
The public meeting provides an opportunity for area residents to speak with Richardson and hear a progress report on the Omnibus Coastal Property Insurance Reform Act of 2007.
“Since the passage of the Reform Act in June of 2007, we have seen new companies enter the South Carolina marketplace,” Richardson said. “We have also seen reinsurance costs decrease and the surplus lines market become much more nimble. These are all indications that the market is improving and after a 2-3-year period we expect to see continued improvements as a result of the Reform Act.”
The 2007 legislation outlined various ways to enhance property insurance affordability and availability along the coast. Homeowners were allowed to set up catastrophe savings accounts to prepare for the financial impact of a catastrophic storm and save on state income taxes.
The act also provides state tax incentives in attempt to make insurance more affordable for people with modest incomes. Specifically, people who pay more than 5 percent of income towards insurance premiums will receive a tax credit of up to $1,000 for costs incurred to retrofit their homes and may claim a tax credit up to $1,500 against sales taxes paid on material used for retrofitting.
Insurers are now required to offer insurance premium discounts and credits for certain mitigation measures such as the use of storm shutters, roof tie-downs and the purchase of flood insurance.
Additionally, the act created a retrofitting grant program, entitled South Carolina Safe Home. Grants are available to single family homeowners of site-built and manufactured or modular homes to help them strengthen their properties against the high winds associated with hurricanes and other severe wind events.
To date, S.C. Safe Home has awarded more than 375 grants to homeowners totaling approximately $1.98 million.
The June 12 informational session will be held at Mount Pleasant Town Council Chambers, 100 Ann Edwards Lane, Mount Pleasant, S.C.
Source: South Carolina Department of Insurance
Topics South Carolina
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