What to do about Wind and Hail Insurance?
As the weather turns toward spring, we find a lot of conversation from homeowners concerning Wind and Hail insurance coverage. Some homeowners policies are written with the wind/hail coverage included within the policy or more often for properties on the Island the wind coverage is written as a separate policy issued by the South Carolina Wind Hail Underwriting Association (SCWHUA or Wind Pool).
SCWHUA is not inferior coverage.
Back in the 1970’s, the South Carolina Legislature essentially ordered the formation of the SCWUA when it required the insurance industry to make available wind and hail insurance to homes and businesses located along the beach areas. This residual market was necessary because the coverage was not available or affordable for many properties close to the coastline. The Wind Pool has served a great benefit to many who live in the beach region. All property and casualty insurance companies conducting business in the State are required to participate in funding the program and share in any losses or profits.
Want to save some money on you wind and hail insurance?
Consider raising the deductible! The wind coverage contains a deductible clause that is based on a percentage of the amount of insurance. Options include 3%, 4%, 5% and 10%. The premium savings are substantial and you have the benefit of a lower deductible should a loss occur from a non-named storm. In other words, covered losses not arising out of a named storm carry only a 1% deductible of the limit on the policy, not the higher deductible listed for a named hurricane or tropical storm.
One final thought from our Insurance Expert.
Remember if you want replacement cost coverage for your home from the SCWHUA, you must have flood insurance in force at the time of loss.
Jeff Althoff, Agent
Beaufort County Farm Bureau
PO Box 4488
281 Parris Island Gateway
Beaufort, SC 29903
Ph: 843-522-0031 Ext. 234