Wind/Hail Insurance Group Information (Updated June 17)

• S.C. Property Insurance Premiums Tax Credit Option Information
• Summary of May 28 Meeting with the Department of Insurance
• Join the Subcommittee
• WHIG Background Information
• WHIG Online Survey
• Webinar of WHIG Presentation Including Verbatim Text
• Form Letters For Download and Printing
• Useful Links
• E-mail Contacts
• Map of Areas Covered by SC Wind/Hail Underwriters Association

S.C. Property Insurance Premiums Tax Credit Option Information

Greetings Friends and Neighbors:

In response to several inquires, and compliments of the Seabrook Island Wind and Hail Group's chairman Bill Mowat, here is a South Carolina Property Insurance Premiums Tax Credit option you may wish to check out with your tax preparer, accountant, or click on SC Tax Credit Form TC-44 using your search source. If you wish to secure the forms via the Internet, please click on the links below. Please note: KICA provides this material solely for your information; you should consult with a qualified professional (e.g., accountant, tax advisor) before applying for the credit.

• www.plcmc.lib.nc.us/bizlink/taxes/forms/sc99/sc1040x_91499.pdf
• www.sctax.org/NR/rdonlyres/A159689B-68A6-4F88-95E9-0C5E624F9ED4/0/TC44.pdf

To determine if you can qualify, go to the SC Form titled "Excess Insurance Premium Credit" or SC SCH.TC-44. The formula works as follows: ...take 2% of your Federal Adjusted Gross Income. If your insurance premiums for you property and casualty insurance for your legal South Carolina residence exceeds that amount by at least $1,250, you can claim a $1,250 tax credit.

To give an illustration, if your Adjusted Gross Income is $100,000 then 5% is $5,000 and if you premiums total $8,000 (automobiles, umbrella, and valuables not included) then your excess for the year is $3,000, and you can take a $1,250 credit.

This tax credit was enacted with the SC Tax Code for 2007, so if you qualify filed an amended return for both 2007 and 2008.

The Wind and Hail Insurance Group is working with other coastal communities (Kiawah Island, Mount Pleasant, Edisto Island and Hilton Head) to help inform residents of the implications of skyrocketing hurricane insurance and discontinuance by some major insurers.

Best regards,

Roy Mathis

Summary of May 28 Meeting With the Department of Insurance

Joe Bunting, association chief operating officer, and Tom Kulick, chair of the Kiawah Wind and Hail Insurance Group (KWHIG), attended the May 28 meeting with the SC Department of Insurance on behalf of Kiawah Island.  Other attendees from Kiawah were Joe Evangelist, Marie D'Ambrosio and others.   

Before the meeting, Joe provided James Byrd, the deputy director for SCDOI a copy of KICA’s letter to Director Richardson about the wind pool (click here to view letter).

Scott Richardson, Director of SC Dept of Insurance, ran the meeting.  He spoke for approximately one hour and his message was that the SC Wind and Hail Underwriters Association (SC wind pool) is the insurer of last resort, so if prices are higher than through regular insurance companies, that is to be expected.  He made his case regarding anticipated increases in rates using quite a bit of data and explained it clearly.  He explained that since 2006, there have been approximately eight more insurers in the state, so even in places like Kiawah, most often members can get insurance through private insurers rather than only the SC wind pool (and thereby can save on insurance rates). He then provided contact info for all independent agents and brokers.  There were complaints from the audience that he was not representing the consumers enough and was representing the insurance industry too much, but the reasoning for this complaint was not explained. 

Next presentation was by Smith "Smitty" Harrison, director of SC Wind and Hail Underwriters Association.  He addressed comparisons of SC's wind pool to those in NC, FL, and LA, showing how SC had a superior product.  There were few comments about his presentation.

Comments from the audience revolved around rate increases, the location of SCDOI’s area demarcating which properties were within the pool, interest in knowing who the consumer members of the WHUA board are and availability of private insurers.  

Sen. McConnell and his staffer, attorney Paula Benson, attended to understand what the issues were for his constituents; as you may know, the senator had ordered that an audit of the WHUA and it is anticipated to be complete this year.    KWHIG provided a copy of KICA’s letter to SCDOI to Paula. 

Join the Subcommittee

Our neighbors from Seabrook have formed the Wind and Hail Insurance Group, otherwise known as WHIG, to study the escalating premiums and other factors that affect us here on the coast.  Seabrook WHIG (SWHIG), is working with other local communities to build support.  SWHIG, which will remain the master group, has now asked that the other communities begin establishing their subgroups - KWHIG in our case. We are now looking for KICA members who are interested in participating in a Kiawah Wind and Hail Insurance Group (KWHIG).

The KWHIG team would act for Kiawah as SWHIG has for Seabrook. KWHIG would work with KICA members in explaining issues, providing education and serving as a point of contact on Kiawah for matters of wind and hail. KWHIG would work with staff to provide communications, such as open forums like SWHIG has been holding, and other materials and information to raise awareness about our coastal insurance rates.  KWHIG will make contact with appropriate officials (and /or enjoin members to do same) to make Kiawah’s voice heard, and will help get the troops out for any department of insurance public hearings. The chair of this group, along with staff liaisons, would work with the other communities on strategy approaches to wind and hailissues. Time commitment is more up front initially in the learning process, but SWHIG will hold orientation to get us up to speed. Less time would be required on an ongoing basis, but it really depends on the level of Kiawah interest.

We have several interested members and need just a few more to be sure all interests are represented. In particular, a member residing in the Columbia area would be helpful for very occasional attendance at state insurance meetings. Interested members to date include one resident and two non-residents, one of whom is a regime owner.  You need not have insurance experience or be a full-time resident to participate.  Much can be done online and by e-mail.

WHIG Background Information

Over the past year, the cost of South Carolina Wind and Hail Insurance for hurricanes has increased for homeowners throughout the coastal region, including Kiawah Island. In response to these unexpected premium increases, a Wind and Hail Insurance Group (WHIG) was formed.

The WHIG aims to be proactive in the following ways:

• Gather the information needed to understand and follow trends in the industry.
• Participate in regulatory and independent agency discussions and public hearings.
• Communicate with area residents and state and county legislators through public relations outreach.
• Influence regulators in their review of rate changes.