SC Department of Insurance Pre-Disaster Planning Guide

Pre-Disaster Planning

Natural disaster planning is one of the most important duties a home or business owner can perform. The purpose of this brochure is to provide home and business owners of South Carolina with information that can help them prepare for a possible disastrous situation.

Protection of life is first and foremost before, during and immediately following a disaster. It is very important that consumers take time out before a disaster strikes to be certain that insurance concerns have been addressed. The following is a list of insurance-related coverage suggestions that consumers should consider before they are faced with a disaster.

Hurricane Pre-Disaster Activities

• Monitor the latest weather developments by following radio or television broadcasts and be prepared to evacuate.

• Contact your insurance company or agent and verify coverages are in place before a disaster strikes. Make sure you have wind coverage protection and flood insurance if your home or business is located in a flood plain area

• Make sure that you understand the deductible provision of your policy.

• Keep all of your insurance policies in an easily accessible location.

• If forced to evacuate, keep with you at all times your insurance records, including the name and telephone number of your insurer or insurance agent.

• Be certain you understand the claim procedures of your insurance company.

• Make sure you have insurance up to at least 80% of the value on your home to avoid penalties under any co-insurance provision of your policy.

• Keep all necessary information regarding your health coverage, including prescription information, with your insurance records in the event of an evacuation.

• Be prepared to board up your windows and door-ways to protect your home or business. Pre-cut ply-wood or other material can be used.

• Have a suitcase packed to last each member of your family for at least two days in case you need to evacuate from your home.

• In the event of a hurricane or flood watch, be sure that your vehicle has sufficient fuel in it in order to relocate to a safe area.

• Keep available a tarp and other supplies to protect your home in case it is damaged. The policy re-quires the policyholder to protect the property from further damage.

Personal Property

Before a disaster occurs, take photographs or make a video of each room of your home or business and compile a set of records, old receipts, and bills - to help establish the price and age of your property. Write down brand names and model numbers of appliances and electronic equipment and date purchased. Do not forget to list items such as clothing, sports equipment, tools, china, linens, holiday decorations, business equipment, hobby materials, and all other materials associated with your home or business.

Flood Insurance

Home and business owners insurance policies generally do not cover flood damage. You need to purchase a separate flood insurance policy in order to protect your home or business from flood damages. There is at least a 30-day waiting period before coverage becomes effective. Consumers will need to consider two separate flood policies, one covering damages sustained to the structure and one covering damages sustained to the contents. Flood insurance can be purchased from your local insurance agent or by contacting the National Flood Insurance Plan at 1-800-427-4661.

Different Types of Property Insurance Policies

If you are a property owner living in the coastal area of South Carolina, you may need more than one insurance policy to fully protect your property. Some examples are:

• A home or business owners insurance policy with wind coverage protection.

• A fire insurance policy with extended coverage to protect your structure and contents from losses caused by wind and hail;

• A wind and hail policy from the South Carolina Wind and Hail Underwriting Association (beach area of the State only). Contact your agent or insurer to determine if your property qualifies for coverage through the Association.

• A flood insurance policy (one to cover the structure and one to cover the contents), from either the National Flood Insurance Program or an insurer writing insurance privately for the Federal program;

• An automobile insurance policy containing comprehensive insurance coverage.

Earthquake Insurance

Home and business owners insurance policies generally do not cover earthquake damages. Consumers will need to purchase a separate earthquake insurance policy on their home or business in order to receive payment for damages resulting from an earthquake. Earthquake insurance can be added to an existing home or business insurance policy. Generally, earthquake insurance is not sold as a separate policy. The cost of earthquake insurance varies around the state. Consumers should contact their local insurance agent and secure a price quote based on the structure of their home. Brick veneer construction in all areas of the state will cost slightly more than a frame construction home to insure. Consumers are encouraged to shop around for the best rates.

Protecting Your Home Or Business From Damages Before A Hurricane Strikes

Consumers can do a number of things to reduce the cost of their property insurance. Protecting their property from possible damage before a disaster can have a major impact on insurers' willingness to continue insuring the property and can also have an impact on future prices the consumer will have to pay in the event his home or business is met by a disaster. By performing some of the following duties, consumers can make major contributions toward reducing the amount of losses occurring to their home:

• Consider adding storm shutters to the windows and doors of your home or business.

• Glue or nail down any loose shingles.

• Make certain yard items are tied down or secured. Bicycles, grills, toys, unsecured benches and any other items not tied down should be placed inside an enclosed building. These items become missiles during a tornado or hurricane.

• If you own a vehicle, do not park it under a tree if a storm is anticipated.

• Take precaution to remove any tree that has the potential of damaging your home or business during a storm.

If there are any questions concerning the information contained in this guide, please contact the Office of Consumer Services at the South Carolina Department of Insurance. The telephone number and address are located below.

(803) 737-6180
1-(800) 768-3467
300 Arbor Lake Drive, Suite 1200
Columbia, SC 29223