By Lyle Adriano
South Carolina’s insurance companies and agents are busy preparing for the wave of claims they will have to handle following the recent storm.
“It is very early; in some cases rain is still falling,” said Russ Dubinsky of the South Carolina Insurance News Service. “But we are looking at a catastrophic event, both for insured losses and uninsured losses.”
A good number of South Carolina homeowners do not have flood insurance, but some of the damage will be covered by standard homeowners’ policies, Dubinsky noted. He added that damage caused by fallen trees would be covered under a typical homeowner’s policy.
Although many homes were devastated by the storm, insurers have named automobile damage the “loss leader” for claims. Optional comprehensive auto insurance policies—which many in the state have—will cover for significant vehicle damages, noted Dubinsky.
Nationwide,
State Farm reports that about 77% of auto policies include comprehensive coverage.
On October 5, the South Carolina Department of Insurance allowed licensed adjusters from outside of the state to begin helping handle claims, in the hope of expediting the process and improving the claims experience for customers.
Federal funds may be available to help bail some homeowners out.
Dubinsky pointed out that only around 10% of South Carolinians have flood insurance.
Even with coverage, however, things will not be easy for homeowners. Some flood insurance policies exclusively cover damage to the house, and not damage caused to the belongings inside the property.
Dubinsky said that while insurance companies are used to all this, the industry will take a significant hit. “This is going to be an expensive event. There’s going to be a lot of insured losses that our companies are going to have to pay for,” he stated.
