The South Carolina Insurance News Service is a trade association that represents 17 of the leading property/casualty insurance companies that do business in this state. We communicate on behalf of our member companies to be an information-based resource for interested parties. Our organization also believes in consumer initiatives that help develop a more educated consumer public.
Russ Dubisky, executive director, Insurance News Service, is spokesperson. He has selected news and views in a variety of topics to discuss: hurricane season, vacation season, new Legislative laws, and insurance impact on economy.
It is June/July which means hurricane season is here again. Despite forecasts calling for a quiet storm season, South Carolinians should still take some time to prepare.
Even though we aren’t near the coast here in Newberry, advanced preparation will help you respond to a number of different potential disasters, whether it is a hurricane, flood, or other severe weather that can happen in inland areas. Severe thunderstorms can lead to tornadoes, hail, or winds that can down trees and bring severe damage to your home. Disaster preparation should include a thorough insurance review and an emergency plan. Talk to your insurance agent or company to update, ask questions, and make sure you have the right coverages and deductibles in place for your individual needs.
Since the whole state is susceptible to flooding, the S.C. Insurance News Service encourages everyone to consider purchasing flood insurance. Flood insurance is not included in a basic homeowner’s policy, but floods are the most common natural disaster in the U.S.
We also encourage consumers to consider creating a home inventory to ensure you have adequate coverage for your home’s contents. To help with the process, free “Know Your Stuff – Home Inventory Software” is available through the Insurance Information Institute at III.org.
If you have time and can safely do so, prepare the exterior of your home and yard if strong winds and water are imminent
Decide ahead of time where you’ll go if an evacuation order is issued, and have more than one alternative – the home of a friend or family member, a hotel, a shelter. Be sure to listen to radio and TV stations for evacuation information and instructions.
The summer also brings about vacations. With this being peak travel season, you want to make sure that your home isn’t a target for thieves when you’re away on vacation.
To help protect your house whenever it is unoccupied, you may want to get someone to check on the house regularly and go inside to make sure nothing is out of order, shut off the water supply, put lights on a variable timer, so that they go on and off as if someone is at home, use outdoor lighting that comes on automatically at dusk, and use your central security system, deadbolt locks and smoke detectors to protect your home. The legislature recently adjourned. There are a couple of updates on the legislative front.
Ride-sharing –The General Assembly recently passed a bill outlining how ride-sharing companies (also known as Transportation Network Companies, or TNC), such as UberX, will be regulated. The bill also provides for minimum liability insurance requirements. Specifically related to the insurance provisions, the new law requires transportation network companies to carry primary liability insurance that covers their drivers should they cause an accident
Trespasser Responsibility Act — The bill codified existing law and limits the duty of care, and liability, that land or property owners owe to trespassers. It will make it more difficult for an individual to recover damages that were incurred while trespassing.
Insurance Fraud—The state budget for next year may include funding for two additional insurance fraud investigators. Our industry often coordinates with S.C.’s Attorney General, Alan Wilson, and the S.C. Law Enforcement Division to help prevent, investigate, and prosecute insurance crimes. Fraud can take many forms. Most commonly, perpetrators inflate damages in an effort to receive higher payouts. Fraud can also be more sophisticated or dangerous and involve staged auto accidents and deliberate acts such as arson. It is estimated that about 10% of insurance premiums go towards insurance fraud.
The insurance industry has a significant impact on South Carolina’s economy. Our industry employs more than 41,000 people, pays more than $150 million in state premium taxes, and contributes about $3.7 billion to South Carolina’s gross state product. Perhaps of greater importance, property and casualty insurance companies paid more than $3.5 billion in claims to help individuals and businesses recover from losses last year. Life insurance claims and benefits exceeded $5.5 billion in the same year. By paying claims and assisting in the recovery effort, insurers help provide individuals and businesses with economic security, and help make our communities more resilient.
However, the economic impact doesn’t stop there. Insurance also provides necessary protection for our most important assets, and protects lenders’ collateral to help stimulate our credit-based economy. Lenders often require borrowers to purchase insurance for homes that have mortgages and vehicles that have outstanding loans. In an environment where most American families rely on credit to purchase cars, homes, and/or to start a business, insurance is a critical component in making sure these borrowing opportunities are more readily available.
Insurance is, perhaps, a unique industry in some ways, but it is also a highly competitive industry. When the market is competitive, consumers win because they have more options.
While many insurance policies have some standardization such as common coverages and definitions, insurers are constantly trying to differentiate themselves from their competitors. With options available, it is important for consumers to shop around. Agents can be a tremendous helpful resource. They are trained to ask questions that help identify your true needs. Remember, shopping for insurance costs nothing but your time. In a well-functioning marketplace, there are a variety of competitors whose products fill different and competitive niches. Readers are encouraged to visit our website at SCinsurance.net, also visit your local insurance agent.