California isn’t the only state dealing with insurance premium increases, South Carolina is as well

In Horry County, South Carolina (WPDE) – Insurance premiums have experienced a drastic surge for numerous residents throughout the Palmetto State, particularly in the Coastal Grand Strand region.

On Tuesday, a substantial gathering of apprehensive homeowners convened at a town hall event organized by state authorities, their objective being to collaboratively explore remedies to the mounting escalation in insurance costs.

It was recommended that regulators engage in discussions concerning potential courses of action to address the pressing challenges faced by coastal South Carolina homeowners grappling with the distressing reality of an “insurance crisis.”

A noteworthy state official remarked that the current state of the housing market is unparalleled in its severity, characterized by conditions he personally deems as amongst the most dire he has ever encountered.

“The affordability of residing here has become an insurmountable challenge,” remarked Denise O’Wesney Richardson, President of the local Homeowners Association (HOA).

Numerous residents who voiced their concerns during the meeting stated that their insurance costs have escalated by a minimum of 100%.

A resident shared the distressing experience of their neighborhood’s HOA insurance fee surging by four times the budgeted amount, and this adjustment was communicated with a mere 48-hour notice.

O’Wesney Richardson conveyed the gravity of the situation, illustrating, “Consider this scenario: if you earn $100,000 annually, a substantial portion, around 60-70%, is now directed solely towards insurance expenses. This is the predicament we currently find ourselves in.”

Expressing further distress, another Horry County resident envisaged a grim future, stating, “What measures will be taken when individuals cannot fulfill their payments? What will transpire when foreclosures become inevitable? The outcome may well be a deserted community.”

Representatives from the State of South Carolina Department of Insurance, present at the town hall event on Tuesday, elucidated the primary factors contributing to the rapid escalation of insurance rates. They attributed these rising rates to global natural disasters, inflation, an increase in property values, and a scarcity of insurance companies in the vicinity.

The limited availability of admitted carriers within the market was highlighted as a significant issue. Consequently, the constrained supply has led to exorbitant pricing due to the lack of alternatives. Jennifer Greene, Lead Performance Manager for Better Homes and Gardens Real Estate, highlighted the importance of attracting insurance companies back into the market to enhance options and competition.

State representatives expressed their intent to collaboratively formulate legislative measures aimed at providing financial relief to the people of South Carolina. However, they acknowledged the inherent sluggishness of government processes, indicating that it may take several years before viable solutions are established.

O’Wesney Richardson lamented the sudden financial burden on long-standing property owners, stating, “For those who have resided and owned property here for decades, the abrupt surge in prices is twice what they are accustomed to paying. This unexpected change may render some unable to afford living in their own homes.”

The town hall sessions held in Conway on both Monday and Tuesday nights marked a groundbreaking initiative in the state. Lawmakers have plans to extend this forum to other regions across the Palmetto State.

For the interim, state officials are hopeful that a favorable storm season may alleviate some of the financial strain faced by homeowners, offering a glimmer of respite. Source: https://wpde.com/news/local/skyrocketing-insurance-rates-spark-concern-among-coastal-grand-strand-homeowners-hoa-spike-money-south-carolina-south-carolina