SPARTANBURG - Coastal tourism leaders urged Gov. Mark Sanford to mitigate surging insurance costs during a closed-door meeting Tuesday at the state's annual hospitality conference.

Sanford met with 15 of the industry's top officials, including chief executives of private companies and the heads of public tourism marketing groups.

Though the group lauded the governor's recent proposal to allocate another $13.5 million to tourism in the upcoming year, they quickly pressured him on the availability and affordability of coastal property insurance.

Hotels, tourist attractions, homeowners and condominium complexes from Myrtle Beach to Charleston to Hilton Head Island have been struggling to bear up against a rising tide of premiums. At the same time, a growing wave of insurers are reducing their risk along the hurricane-prone coast by dropping policies.

"It's frightening," said Doug Wendel, chief executive of powerful Grand Strand real estate developer Burroughs & Chapin Co. Inc. "There's going to be a lot of blood in the streets of Myrtle Beach if something doesn't happen."

Wendel urged Sanford to push for subsidies or expand the wind pool territory, a designated area in which property owners can get last-resort coverage from an association of insurers that do business in South Carolina.

Sanford, who owns an oceanfront home on Sullivan's Island, said expanding the wind pool would shift coastal insurance costs to property owners statewide.

He suggested that the state allow hoteliers and homeowners to save money pretax to pay for insurance. By "building up a kitty," they could agree to a higher deductible and keep their monthly payments lower, Sanford said.

"You want to make sure that as part of the mix you leave room for the individual to insulate himself," he said.

Sanford also warned against bold regulatory changes that could spur some insurers to pull out of the state.

In December, Allstate Corp. announced it would not renew about 12,000 home insurance policies in South Carolina, including eight coastal counties. Last week, State Farm, the No. 1 property insurer in the state, said it will drop about 1,000 policies from Myrtle Beach to Hilton Head Island as of May 1.

"Clearly something needs to be done, but we need to be careful that we don't put in plans that cost us down the road," Sanford said. "There are a number of other states pursuing policies that are going to cost them very dearly down the road."

Tourism leaders, in turn, argued that taxpayers in the Midlands and Upstate should share part of the rising costs, because coastal companies contribute more accommodation and admission taxes than the rest of the state.

"We've got to make sure we don't choke the golden goose," said Brad Dean, president of the Myrtle Beach Area Chamber of Commerce.

Dean said the industry's greatest fear is that the insurance issue will be hijacked by political debate.

"The worst thing that you can do would be to do nothing," he said. "It's like a patient is bleeding to death and the doctors and nurses are arguing about what size bandage to put on."

Reach Kyle Stock at 937-55634 or kstock@postandcourier.com.