South Carolina’s Governor Sanford Signs Coastal Insurance Bill

South Carolina Governor Mark Sanford today signed a market-based coastal insurance reform bill aimed at alleviating insurance costs for coastal homeowners.  The news is detailed in the Governor’s press release below.

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Bill Aimed At Alleviating Insurance Costs For Coastal Homeowners

 

Columbia, S.C. – June 11, 2007 – Gov. Mark Sanford today traveled to Charleston and Myrtle Beach to sign H. 3820, a market-based coastal insurance reform bill aimed at alleviating insurance costs for coastal homeowners.

“This bill is another important step toward addressing escalating coastal insurance costs in a way that will encourage, rather than discourage, insurers to write policies along the coast – which is key to stabilizing and ultimately lowering insurance cost,” Gov. Sanford said. “This bill sends a strong signal to the insurance industry that South Carolina has rejected the government-centered approach to addressing the insurance crisis that has been adopted by states like Florida – and highlighted just recently in the Wall Street Journal. Instead, this bill is aimed at increasing the availability of private insurance – which will promote competition, ultimately key to driving down premiums. This bill also encourages individual initiative, which we’ve said from the beginning is key to storm preparation. I’d thank the General Assembly, particularly the House, for getting this legislation to my desk in time for storm season. Specifically, I’d thank House Labor, Commerce and Industry Chairman Harry Cato and his Insurance Subcommittee members including Nikki Haley, Bob Leach and Tom Dantzler; additionally, Chip Campsen for introducing the bill in the Senate and Banking and Insurance Committee Chairman David Thomas for his hard work in pushing this bill toward the finish line, as well as Director Scott Richardson for his hands-on approach at the Department of Insurance.”

The legislation would create a number of tax incentives to impact homeowners’ costs, including tax deductions for catastrophe savings accounts, tax credits for lower-income property owners who pay more than five percent of their incomes toward insurance premiums, tax-free savings accounts for homeowners who choose to carry very large deductibles or create accounts to “self insure,” and tax credits for insurance companies who write full coverage for property owners along the coast.

The legislation would also provide tax credits for property owners who purchase building supplies used to make their homes more storm resistant, would require that private insurers give premium discounts to homeowners who have made their structures more storm resistant, and would require that insurers give greater notice regarding cancellation of policies. In addition, the legislation would reform laws relating to the wind pool line to give clearer guidance on the circumstances under which that line can be moved.