State’s insurance industry to take a financial blow due to heavy rainfall and rising waters
Insurers in South Carolina are bracing for the impact of flood-related claims as the state becomes inundated with heavy rainfall from powerful storms. According to the South Carolina Department of Insurance, companies providing homeowners insurance and coverage for businesses are expecting to be hit by major financial losses due to recent weather-related issues. The majority of claims are expected to comes from those with damaged properties and vehicles, which has been caused by significant floods.
Homeowners without flood protection may see major financial losses
Many consumers may encounter problems when it comes to dealing with flood damage. Typically, homeowners and businesses can only acquire flood insurance coverage through the federal National Flood Insurance Program. Not all homeowners are required to purchase this coverage, of course, but private insurers do not typically offer flood protection. For these property owners, the financial damage caused by floods may be too much to handle. Even those with coverage through the National Flood Insurance Program may find it difficult to have their claims managed by the federal program in a timely and efficient manner.
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Insurance officials continue to investigate the extent of the damage
State insurance officials believe that insurers will be bringing it adjusters from other states in order to adequately investigate the damage caused by flooding. Most of the state’s insurers are expected to have enough resources on hand to manage the disaster appropriately. The state is still working to calculate the total damage caused by the flooding, and insurers are expected to take a significant financial blow, especially those providing coverage to businesses, especially due to loss of business that has been caused by flooding and property damage.
Conventional coverage does not provide protection against flood damage
For conventional homeowners insurance policies, wind-driven rain damage is typically covered. This is not the case when it comes to floods, however. Those that have recently purchased coverage from the National Flood Insurance Program will have to wait for 30 days for their policies to go into effect. For some, the waiting period may be somewhat problematic.