South Carolina Republican Gov. Mark Sanford signed an omnibus property insurance measure into law yesterday that gives insurers incentives to cover homes in the state's wind pool territory and provides tax breaks to residents who retrofit homes or set up catastrophe savings accounts.
The Omnibus Coastal Property Insurance Reform Act of 2007 had the backing of insurance companies.
Other provisions included:
o Creation of the South Carolina Comprehensive Hurricane Damage Mitigation Program.
o Codification of the March 2007 wind pool expansion.
o A requirement that insurers give 90 days notice before nonrenewing a policy with an effective date during hurricane season.
Liz Reynolds, southeast state affairs manager for the National Association of Mutual Insurance Companies, joined Gov. Sanford at the bill signing and said: "We hope South Carolina's commitment to a measured, multifaceted approach with both short- and long-term effects will be a model for other coastal states struggling with these issues. Thank you again for your work to make this happen."
Gov. Sanford said the 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."
He added that the measure 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."
The Florida Legislature has passed measures approved by Republican Gov. Charlie Crist that have expanded the state's Catastrophe Fund and expanded coverage of its insurer of last resort while freezing its rates.
The governor said the bill "empowers consumers" to take responsibility for risk reduction and "strikes a balance between consumer protection and the market."
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