South Carolina insurance industry sets up for flooding claims

Floodwaters flood auto insurance claims

A surge of filings is expected to take place after the waters rose and left massive damage in parts of the state.

The South Carolina insurance industry is getting ready for a large wave of claims on policies for flood coverage, though it remains too early to know exactly how much damage has occurred in the state.

The S.C. Department of Insurance has been sharing its contact information in order to help affected homeowners.

The National Flood Insurance Program (NFIP), from FEMA has also been sending out information to help to make sure that homeowners who need this additional South Carolina insurance information will be able to reach the right people to have their questions answered. According to the state Insurance Department director, Ray Farmer, figures are currently being compiled and a preliminary estimate is expected before the week has come to a close. It is most likely that the claims that are made will be from homeowners and vehicle owners who have experienced damage or destruction due to the heavy rains, floodwaters, and downed trees, said Farmer.

Standard South Carolina insurance policies don’t include flood coverage, which must be purchased separately.

Floodwaters flood south carolina insuranceThose flooding policies are sold by way of the National Flood Insurance Program, which requires a waiting period of thirty days once it has been purchased, before it can take effect. This is not a required form of coverage for all property homeowners, but the hope is that the majority of people within the affected areas will have coverage, said Farmer. His department will be working alongside officials from NFIP in meetings, this week.

Typically speaking, an NFIP policy will provide coverage for a property with this flood insurance, against direct physical damage from floodwaters. It provides policyholders with the cost of replacement or with the cash value of the damage up to the limit of the policy. On average, an NFIP policy costs around $700 per year, according to the official website for this federal program.

In terms of auto coverage, whether or not South Carolina insurance policies will pay for the damage depends on the individual’s policy, says Ann Robertson, a spokesperson for the S.C. Department of Insurance.

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