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House Insurance (South Carolina) rates up again...options?

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House Insurance (South Carolina) rates up again...options?

Old 04-08-2007, 04:44 PM
  #1  
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Default House Insurance (South Carolina) rates up again...options?

It looks like my string of expensive surprises is continuing. First, my truck decided last week it needed a new engine at 87K miles. This unexpected cost caused me to have to pass on buying 4 Avet reels and rods that someone was graciously putting together for me.

Yesterday, I just got the insurance bill for my house and the premium has gone up another $1400 to a new total of $5005! The house is on deepwater; however, this is ridiculous considering Beaufort, SC hasn't had any hurrcane damage since the late 1950's. My premiums have doubled over what I was paying in 2005.

I know the rate is cheap compared to the Florida Keys and other areas; however, I wold like to see what my options are. Does anyone have any suggested brokers or companies in SC to call for a quote?

Thanks!
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Old 04-08-2007, 05:29 PM
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Joe
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Default Re: House Insurance (South Carolina) rates up again...options?

In mt pleasant, my insurance recently went up about 50%; I think everyone is paying for Katrina, and what will probably happen to us this year. In fact, my HO carrier won't write any new policies, and has actually dropped 1800 houses because they were considered over extended.
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Old 04-08-2007, 06:15 PM
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Default Re: House Insurance (South Carolina) rates up again...options?

We have a vacation house on IOP(have had 2 there since back in the 70's) and got a notice from State Farm that after this year they would not carry coverage anymore.

I talked with my agent along with couple of agents that are clients of mine and was told that SC would have an insurance pool for these type of houses.
Seems like we do have a Gov that is attempting to do something about it, he has named a new Insurance director for the state and this one is from the coastal area and is promising some changes

I guess we will wait and see, insurance on these houses is now up to 5K per year and the land (sand) seems to be where the value is more than the house itself
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Old 04-08-2007, 09:10 PM
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Default Re: House Insurance (South Carolina) rates up again...options?

No flaming but I am going to jump on the other side for a minute. First, insurance companies are not non-profit corporations. If they thought they could make money writing coastal exposures or writing them at a lower premium, they would do so. To govern lower rates on the coast will only result in inland exposures subsidizing the coastal risks. Is this fair to someone who lives in the Greenville/Spartanburg area?

As far as wind pools go, be careful what you ask for. NC has the Beach Plan and it has almost $400 million in surplus. Under a maximum probable loss scenario with a caine hitting the Wilmington area, the wind would have to blow for about an hour to eat up that surplus. Where does the money come from after that? In NC it's assesments on any insurance company writing property in the state, even if they have no coastal exposures. Is this fair?

When Bertha and Fran came onshore, one company I know of was assesed more money than it paid in direct claims. Is this fair? They didn't think so. They stopped writing any property coverage in NC to avoid more future assesments.

I can't remember his name but there was an actuary here a few months ago that said the rates for Florida coastal exposures should be about 25% of the home's value to be actuarily correct. If they aren't 25% of the value of the home, then someone with less exposure is subsidixing their premiums. Is this fair?

BTW, we have a house just north of Beaufort NC and I can feel your pain. Try to find an agent in your area that can get you to Lloyds or Lexington.

Afterthought: Find an agent in your area who can get you to Johnson and Johnson in Charleston. They can get you to Lloyds, Lexington, and a couple of others.
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Old 04-08-2007, 10:56 PM
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Default Re: House Insurance (South Carolina) rates up again...options?

Shag - 4/8/2007 8:10 PM

I can't remember his name but there was an actuary here a few months ago that said the rates for Florida coastal exposures should be about 25% of the home's value to be actuarily correct. If they aren't 25% of the value of the home, then someone with less exposure is subsidixing their premiums. Is this fair?
That is a total load of bullshit.

C'mon man, don't take the crap answers you get from insurance people without AT LEAST doing basic math.

25% of structure value? So let me see - that means I get totalled once every 3.5 years? (Remember, they earn money on your premium until they have to pay it out)

I don't think so. How long was it between Andrew and Wilma (the last two direct strikes on SE Florida)?

It was 10 years between direct strikes HERE in the Panhandle, and my home - which is directly on the bay - was damaged by NEITHER.

How long since a storm that DID damage this house? Don't know - but I do know that it is more than 15 years, since that's as long as the house has existed.

Oh, and let's not forget that this damage exposure is all from wind. Flooding (including surge) is NOT COVERED by homeowners insurance. That's a separate policy.

IF we ever get wrecked here from a hurricane, it is likely to be from surge - which the HO guys won't have to pay on (yes, I do have flood insurance)

And if you think being "inland" is protective, its not. Within 100 miles of the coast it can be argued that your structure is at MORE risk from windstorms if you're inland than directly on the coast, because you have more debris available to impact the structure. The wind VELOCITY is higher directly on the coast but the amount of debris available to play "spear the roof" and lead to a catastrophic loss is lower.
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Old 04-09-2007, 07:09 AM
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Default Re: House Insurance (South Carolina) rates up again...options?

At 25% I would be smarter to play the odds and self insure.

My house is elevated 10' and is well constructed. Barring a Category 5 storm, my damage would not be as severe as some of the ground level homes or some of the flimsily constructed condos.

Bitefish is right. When Hugo came ashore in 1989, inland areas (like Columbia and Charlotte) got almost as much wind damage as the coast.
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Old 04-10-2007, 08:05 AM
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Default Re: House Insurance (South Carolina) rates up again...options?

billh1963, I feel your pain as well. I have 5 rental houses, plus my own, and three are in flood zones. My wife almost makes a career of keeping up on insurance. We use two different independent insurance companies, plus State Farm. Unfortunately, you don't have many options other than self-insuring if your house is not mortgaged.
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Old 04-10-2007, 08:39 AM
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Default RE: House Insurance (South Carolina) rates up again...options?

25% At those numbers ins can go f themselves. Ins loves to segment their business but still report billions in total profits to their shareholders. One of the worst thing to happen was letting them go public. They no longer are in the risk business There is no good answer for your problem. BTW, don't count on the government to bail you out. All these folks in LA and Miss that are trying to get grant money for the difference in insured and uninsured loses are going through hell. The way I see it coastal property is about to get a whole lot cheaper
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Old 04-10-2007, 10:42 AM
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Default RE: House Insurance (South Carolina) rates up again...options?

billh1963 - 4/8/2007 4:44 PM

It looks like my string of expensive surprises is continuing. First, my truck decided last week it needed a new engine at 87K miles. This unexpected cost caused me to have to pass on buying 4 Avet reels and rods that someone was graciously putting together for me.

Yesterday, I just got the insurance bill for my house and the premium has gone up another $1400 to a new total of $5005! The house is on deepwater; however, this is ridiculous considering Beaufort, SC hasn't had any hurrcane damage since the late 1950's. My premiums have doubled over what I was paying in 2005.

I know the rate is cheap compared to the Florida Keys and other areas; however, I wold like to see what my options are. Does anyone have any suggested brokers or companies in SC to call for a quote?

Thanks!
I gotta idea.

Put the wheels back on yore house and pull it to Tennessea with yore truck with the new motor to where we don't have hurricains, just tornaders.
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