THURSDAY, FEBRUARY 12, 2015
Sone insurance agencies in South Carolina operate as experts for certain types or what we call lines of insurance and some are just generalist. Being a generalist is akin to being a family doctor. There is a tremendous need for this but that's now how we operate. An insurance agency that operates as a generalist tries to be all things to all people. The insurance business has become extremely specialized and complicated. Even more so for agencies located in coastal communities like Charleston, Mt Pleasant, Sullivans Island, Isle of Palms and others. Let me explain what why we are specialist in certain lines of insurance. We are specialist in insuring coastal homes. You may says that there is no difference between insuring a home in Mt Pleasant and insurance one in Charleston. But that's where you'll be wrong. The state of South Carolina operates or sponsors the SC Wind & Hail Underwriting Association. The state has mandated that certain areas are a higher risk for windstorm losses. Why? This is rather simple. South Carolina is located in a territory that is subject to hurricanes and other tropical storms that come in from the Atlantic. Being on the front lines by having a house on the beach is a much higher risk than having a home located 8 miles from the beach in West Ashley. There are two wind zones. Zone 1 is for ares like the beach or barrier islands in South Carolina. Zone 2 is for higher risk or what the state has decided is a higher risk in other areas that are close to the beach. So areas of Mt Pleasant east of Hwy 7 or Johnny Dodds Blvd and areas of James Island are considered zone 2. Anyone who lives in Zone 1 or 2 is subject to paying higher premiums for home insurance. This should a consideration when buying a new home. In the next blog I'll explain why.