Hurricane protection for your home can cut insurance costs

South Carolinians are heaving a sigh of relief as today marks the end of a quiet hurricane season. Now what? While the state hasn’t seen a major storm since 1989, others have left their mark. It’s only a matter of time until our luck runs out.

Meteorologists remind us we are in a cycle of higher hurricane activity. While some homeowners seem more concerned with purchasing granite countertops than hurricane protection, South Carolina offers a number of incentives.

The South Carolina Omnibus Coastal Property Insurance Reform Act requires insurance companies to give discounts to homeowners who make their homes disaster resistant. The use of storm shutters, roof tie downs, better roof coverings, impact-resistant windows and doors, and other actions taken to reduce losses are some examples of qualified improvements.

According to a survey by the South Carolina Insurance News Service, insurance discounts range from 2 percent to 25 percent depending on the type of improvements. The South Carolina Wind & Hail Underwriting Association, which insures property along the beach areas, gives a 20 percent discount for building a home to the Fortified…for safer living® standard. The Fortified…for safer living® program, developed by the Institute for Business & Home Safety, specifies construction and design guidelines to increase a new home’s resistance to natural disasters.

The law provides state income tax credits for property owners who purchase building supplies to make their homes more storm resistant. So, save those home improvement receipts and inform your insurance company of improvements. You may qualify for a discount.

The new law allows homeowners to set up a special savings account, state income tax-free, called a “catastrophe savings account.” It can be set up at any state or federally chartered bank in South Carolina. Money can be set aside to pay for qualified catastrophe expenses, such as your insurance deductible or other uninsured costs, associated with a hurricane, flooding or windstorm event.

The legislation set up a grant program called SC SAFE HOME. More than 700 grants totaling nearly $4 million have been awarded to qualified property owners who made improvements to their homes to help reduce hurricane damage. Due to the success of the program, this year’s funds are nearly depleted, but the program, operated through the South Carolina Department of Insurance, will continue to educate homeowners about ways to strengthen homes and protect homeowners.

We’ve come a long way in the past couple of years in South Carolina. As a result of the new law and efforts by the Department of Insurance and Director Scott Richardson, new insurance companies have come to our state. More insurance companies give consumers more choices, increasing affordability and availability. Other states, struggling with their own answers, look to South Carolina as a leader, with laws and programs in place to address our coastal insurance issues.

We are fortunate to have a beautiful coastline, but living along the coast comes at a greater risk. With the increased development, population and values of homes, our coast now has nearly $200 billion in insured property. If Hugo were to hit today, it would cause more than $10 to $15 billion in damages.

This year’s hurricane season is ending but the planning never stops. Insurance companies, the South Carolina Department of Insurance and the South Carolina Emergency Management Division work constantly to have effective plans in place to prepare for and respond to the many natural disasters we face. But we, as home and business owners, have the responsibility of making wise choices when it comes to protecting our homes, businesses, families and employees.

Give your family and employees the gift of a safer home and workplace by strengthening homes and businesses to better withstand hurricane force winds and other disasters. Consider purchasing flood insurance to properly insure your home, business and contents. Update your home or business inventory to document items in case you need to file an insurance claim.

Living in South Carolina, one thing is clear: when a hurricane or other disaster strikes is a matter of chance. How well you prepare for a disaster is a matter of choice.

Allison Dean Love is executive director of the South Carolina Insurance News Service. Learn more about the new law and creating disaster-resistant homes at www.scinsnews.com.