South Carolina Wind and Hail Underwriting Association (SCWHUA or “The Wind Pool”) Facts

In 1971, the South Carolina Legislature required insurance companies to make wind and hail insurance coverage available to home and business owners in the coastal areaswho were not able to buy it through the voluntary insurance market.The South Carolina Wind and Hail Underwriting Association (SCWHUA) is comprised of insurance companies providing this coverage. Although its official name is the South Carolina Wind and Hail Underwriting Association, it is often referred to as the Beach Plan or Wind Pool.

  • The Association is a "last chance" insurer which specializes in insuring higher risk properties. For that reason, the price is typically higher. It is highly recommended that homeowners seek insurance in the standard market before applying for coverage through the Association. If applicants find better coverage elsewhere, they can cancel their Association policy without penalty.
  • The Association provides coverage for the perils of wind and hail in the coastal area of the state designated by the Legislature as "Beach" which is defined by state law. The area is divided into Zone 1(closest to the ocean) and Zone 2(further inland). Zone 1 policy holders pay a higher deductible. For a detailed description of the geographical areas covered visit
  • The Association is under the direction of a Board of Directors including:
  • 11 insurance company representatives
  • 2 coastal insurance agents
  • 4 consumer representatives
  • It is managed by a staff of professional insurance individuals independent of any single insurance company.
  • All property and casualty insurance companies conducting business in the state are required to participate in funding the Plan and share in any losses or profits.
  • The Association is not a government entity. The state of South Carolina has no financial responsibility for losses of the Association

Policies and Claims

  • There is a 15-day waiting period before coverage takes effect. Policies are written for one year only. Continuation of coverage requires the submission of a new application and payment of premium.
  • Policy limits are $1,300,000for residential and $2,500,000 for commercial property. Policiesprotect against losses arising out of wind and hail damage. South Carolina law requires that the Association's maximum limits be used prior to purchasing excess wind insurance.
  • A 2% deductible is standard for Zone 2 properties, and a 3% deductible is standard for Zone 1 properties. Higher deductibles are available for a premium credit.
  • There is a 20% credit available for having a Fortified for Safer Living Home.
  • Insured property:
  • must not be over water.
  • must be in good condition, especially the roof.
  • must not be used for any illegal or immoral purpose.
  • must be in compliance with the Southern Building Code and the Federal Flood construction and zoning guidelines.
  • An inspection of the property is required on every policy issued. A follow-up inspection is undertaken at least every 4 years.
  • In the event of a hurricane, the Association works with the National Flood Insurance Program to speed up the adjustment caused by the effects of both wind and water using one adjuster to handle both losses.
  • While flood insurance is not required, it is strongly recommended.
  • As of June, 2008 the Association issued over 43,000 policies (residential and commercial) with total coverage limits of over $17 billion.
  • The entire state of South Carolina has nearly $200 billion in insured coastal property. For more facts on coastal homeowners insurance and to read about the Omnibus Coastal Property Insurance Reform Act of 2007, link to:

Expansion

  • In response to the needs of coastal residents, the wind pool territory was expanded in March and June of 2007 to include additional areas withinHorry, Georgetown, Charleston,and Beaufort counties where coverage was no longer available in the voluntary market.
  • The determination of where to expand was based on an analysis of insurance coverage available in the voluntary insurance marketplace. The expansion was meant to provide coverage in areas where it was not widely available.
  • The expansion was not intended to make insurance more affordable for coastal property owners. It was intended to make coverage more widely available.

Online resources include county maps of covered areas, a form to determine eligibility and a downloadable PDF of the SCWind & Hail Underwriting Association Manual.

For more information visit