Posted on Fri, Sep. 08, 2006

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Governor hopeful hears insurance fears

By Jenny Burns

The Sun News

Homeowners told state Sen. Tommy Moore, Gov. Mark Sanford's Democratic opponent in the November election, that they want state officials to find a solution soon to the skyrocketing insurance premiums on the Grand Strand.

Moore visited Waterway Village on Thursday, a complex in Carolina Forest that's seen a 600 percent increase in homeowners association premiums. He said he came to listen to residents' concerns and suggestions for improvement.

Among homeowners' ideas was a suggestion that Moore turn their information over to the state attorney general to see if the increases they've seen could be price gouging. They also proposed the insurance department offer incentives to bring insurers to the state and create more competition.

The meeting with Moore followed two insurance forums held Aug. 28 in which homeowners questioned S.C. Director of Insurance Eleanor Kitzman and state lawmakers about why costs increased so dramatically. Moore sent a representative to those meetings but didn't attend, and Thursday Moore said he wanted to speak with residents himself.

Meanwhile, Sanford spokesman Joel Sawyer said the governor recognizes the importance of the issue and is working with the Department of Insurance to address the problem.

One relief could come with a possible move for the wind pool line, which would increase availability of insurance.

Kitzman said at the insurance forums she planned to move the wind pool line soon.

The wind pool is currently an area east of U.S. 17 Business, where homeowners can get wind coverage through a group of insurance companies when they can't buy it through the standard market.

The insurance department is "burning the midnight oil" reviewing all options and effects related to expanding the wind pool, spokeswoman Ann Roberson said.

During Thursday's meeting with Moore, some homeowners said they think the insurance director position should be an elected position, instead of governor-appointed, so that the director is more accountable to the public.

"I think it's time for us to look at that," Moore said. "North Carolina and Georgia have elected insurance commissioners."

Bill Hamilton, homeowners association president at Sea Mark Tower on the Myrtle Beach oceanfront, said the building's insurance will lapse in October and he's having trouble finding any company who will write a policy.

He's been told it could be an increase of 800 percent. Owners had been planning to restore the 20 year building, but that's been put on hold.

"Our people are saying how much insurance do we really want to purchase," he said at the meeting.

Sammy DeRemigio, homeowners association president at Waterway Village, said he was glad Moore came to listen to his residents since many are on fixed incomes and aren't sure how they'll pay the increases.