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South Carolina Wind and Hail Underwriting Association (FAIR Plan)
Any property owner who has tried to purchase insurance in the coastal area of South Carolina has experienced the difficulties of getting wind and hail coverage. The state instituted and created The South Carolina Wind and Hail Underwriting Association which is referred to as the Beach Plan or the South Carolina FAIR Plan to respond to those areas where private insurers feared to go.
The FAIR Plan provides wind and hail insurance for those property owners unable to get this coverage in the private market when their property is located in the territory designated as Beach.
In 1971 the South Carolina state Legislature stepped in to require the insurance industry to make wind and hail coverage available to property owners in the coastal areas. The action was mandated when the private insurers failed to offer these coverages for properties in a close proximity to the coast. This newly formed association is under the direction of a Board of Directors that acts as the governing body of the South Carolina Wind and Hail Underwriting Association.
Almost any property owner in the area of South Carolina is entitled to purchase their wind and hail coverage from the Association provided the property is in the boundaries of the coveted territory. Property owners may still be able to find better insurance coverage in the private market and therefore the FAIR Plan is considered a market of last resort.
In the last 100 years there have only been 8 Category 2-4 hurricanes and only 2 were category 4 so despite the apparent risk, South Carolina has had good fortune with hurricanes. Over the last 25 years there has been an average of about 28 tornadoes per year which is a significant increase but hail events have only occurred on average 5 times per year. This distribution of severe weather has given South Carolina lower than average home insurance costs but due to the lower premium, many insurance companies are more prone to reduce coverages, cancel or non-renew policies in response to unexpected losses. In recent years, some companies ceased business operations altogether causing a spike in demand for the South Carolina FAIR Plan.
As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.