Have you ever seen the series 'Planet in Peril' on CNN?  Well, we've got our very own perilous situation right here in North Carolina.  Our insurer of last resort along the coast, 'The Beach Plan' is in trouble.  A new independent study performed by The Property & Casualty Insurers Association of America finds that the Beach Plan is not financially prepared to handle even a single severe storm.

What does this have to do with you?  Well, nothing if you don't live in North Carolina.  But if you are lucky enough to call The Old North State home, then it has a lot to do with you, especially if you own a home here.

The problem is overexposure to risk and underfunded catastrophic reserves.  The Beach Plan insures about $70 Billion in property and is growing by $1 Billion every month.

According to their own records, the Beach Plan has about $1.5 Billion in reserves while a severe storm could easily cost over $7 Billion.

So I'm sure you're wondering where the other $5.5 Billion will come from.  Well, when there's a shortfall, the plan is designed to spread risk among all the private homeowner insurers throughout the state - even among those that are smart enough not to insure homes along the coast.  That means that in the event of a major storm, many homeowner insurance companies will go out of business.  There is no disputing this fact.

Companies are scared.  Scared enough to pull out of the state altogether, as we've seen with Farmer's Insurance this past year. Scared enough to raise rates statewide, as most major carriers have already done this year.

ALL NORTH CAROLINA HOMEOWNERS are being forced to pay higher insurance premiums because of the Beach Plan's exposure along the coast.  NC homeowners are paying to insure coastal properties even if they don't own property on the coast.

We have about 8 more months to get this worked out before our next hurricane season, and remember, we get a chance to elect a new Insurance Commissioner this year - make sure your vote counts!