Condo Insurance Crisis

The state of South Carolina, in its short-sightedness has allowed the insurance companies to put everyone that lives along the coast in jeopardy with homeowner's insurance. Nobody really knows right now what is going to happen...it's inconceivable that they will allow the companies to go up on our premiums 400-700%. But unless they can find a way to fix things, that's going to happen.

North Carolina has always had an elected Insurance Commissioner, and he could make the insurance companies jump and do tricks like trained dogs. If you called the commissioner's office with a complaint when you had problems collecting on an accident or something, you'd get a phone call several hours later from the offending company begging your forgiveness. I witnessed this twice myself, and it was amazing.

I was in Miami in June, and overheard CNN down there saying that the insurance companies had put in for a 100% increase on property insurance in Florida, and their insurance commission had granted them a 50% increase instead. That's how much pull they have, and the way it ought to be. South Carolina evidently has no such control, and they'd better get it, otherwise our condo insurance is going to ruin Myrtle Beach and the rest of the coast in South Carolina. Myrtle Beach Condo sales will be in deep trouble.

Here's the latest article about the condo insurance crisis...

Posted on Wed, Oct. 18, 2006
REAL ESTATE
Lawmaker airs plans to lower insuranceJENNY BURNS

State Sen. Dick Elliott, D-North Myrtle Beach, says he's working on legislation to keep insurance rate increases from driving Grand Strand residents from their homes.

As insurance costs continue to skyrocket, homeowners are finding their insurance bills are increasing as much as 600 percent to 700 percent, especially those living in condominiums.

Elliott said his insurance legislation will:

Require companies to operate in all parts of South Carolina, not just "cherry pick" certain areas.
Propose a move of the wind pool line to the Intracoastal Waterway from U.S. 17 Business.
Set up a statewide self-insurance pool where prices would be driven by losses within that pool.
Propose that the state insurance director become an elected position.

"In states where they have an elected insurance commissioner, insurance is cheaper, more available and there's a more stable insurance market," Elliott said.

Eleanor Kitzman, director of the S.C. Department of Insurance, said in late August she would move the wind pool line but no action has been taken, Elliott said.

Kitzman has the authority to move the line in an emergency.

Elliott is working with Senate President Pro Tem Glenn McConnell, R-Charleston, and Sen. David Thomas, chairman of the Banking and Insurance Committee, on preparing this package.
Elliott said all have agreed it's critical that insurance issues be a "front burner" item in January when the legislative session begins.

While these proposals may not immediately solve the problem, Elliott said they are a start towards a long-term stable insurance market.

Realtors say the insurance crisis is especially hurting the condominium market, forcing owners to sell and making it more difficult for buyers to afford to purchase the condos.

Elliott said the problem will also hurt the lending industry, which requires that a buyer have insurance before it can approve a mortgage loan.

The senator said he's seen "good times and bad times come and go" but he hasn't seen anything that could hurt the coastal economy as much as the current insurance crisis in the past 10 years.

Contact JENNY BURNS at 626-0305 or jeburns@thesunnews.com.
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Dick Elliott is the Elliott from Elliott Realty, which is one of the biggest companies that handles Myrtle Beach Condos - Rentals and Sales. He's got a big stake in the problem, so maybe that will make him even more likely to do something about it.