South Carolina property owners have been begging for help, which arrived in Myrtle Beach on Monday in the form of Governor Sanford signing the Coastal Property Insurance Reform Act of 2007, which should ease insurance rates along the coast.
During the past 18 months, insurance rates along the coast have skyrocketed, with some reports of up to 1000% increases. In the past four months, the state has expanded the wind pool (the state-run insurer of last resort) twice, which has led to more insurance coverage being offered in areas where it was difficult to find.
Here's what South Carolina homeowners can expect:
- Single-family homeowners are now eligible for tax credits of up to $1,000 and matching grants toward the cost of making their home more wind resistant.
- Homeowners who shell out more than 5% of their income for insurance premiums may receive tax credits of up to $1,250.
- The state sales tax would be reduced by 3% on building supplies used to make homes more wind resistant.
- Insurance companies must provide consumers with a list of all discounts available for making their property more wind resistant, and must offer such discounts.
- Insurance companies must give 90 days notice for cancellation in hurricane season and 60 days notice during the rest of the year.
- Insurance companies will receive incentives for covering property in the wind pool. This is critical in coastal areas like Myrtle Beach.
Experts believe that with this bill enacted, South Carolina has turned the corner and stopped the huge insurance increases.
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