This week will feature SOUTH CAROLINA INSURANCE ASSOCIATION. Russ Dubisky, executive director of the Association, is spokesperson. The Association is a trade group that represents many of the leading property casualty insurance companies in this state and believes in community initiatives that help develop a more educated consumer public

Hurricane season is here. How can we prepare?

Hurricane forecasts are calling for another active storm season this year. Now is the time to prepare. Even though we aren’t near the coast here in Newberry, advanced preparation will help you respond to a number of different potential disasters, whether it is a hurricane, flood, or other severe weather that can happen in inland areas. Severe thunderstorms can lead to tornadoes, hail, or winds that can down trees and bring severe damage to your home.

Disaster preparation should include a thorough insurance review and an emergency plan. Talk to your insurance agent or company to update, ask questions, and make sure you have the right coverages and deductibles in place for your individual needs.

Since the whole state is susceptible to flooding, the S.C. Insurance Association encourages everyone to consider purchasing flood insurance. Flood insurance is not included in a basic homeowners policy, but floods are the most common natural disaster in the U.S.

We also encourage consumers to consider creating a home inventory. A home inventory is a great way to ensure you have adequate coverage for your home’s contents. A home inventory is a list of all your personal possessions and their estimated value. To help with the process, free “Know Your Stuff – Home Inventory Software” is available through the Insurance Information Institute at III.org.

You also want to make sure you have a plan in place if a storm is threatening and/or evacuations have been ordered. If you have time and can safely do so, prepare the exterior of your home and yard if strong winds and water are imminent. Nail any loose shingles or boards, and cover windows with plywood or storm shutters. Bring lawn furniture, potted plants, garbage cans, grills and outdoor decorative items into the garage. Cut weak limbs and those overhanging a structure and remove yard debris.

Decide ahead of time where you’ll go if an evacuation order is issued, and have more than one alternative – the home of a friend or family member, a hotel, a shelter. Be sure to listen to NOAA Weather Radio or local radio and TV stations for evacuation information and instructions.

Plan what to take with you. Disaster kits should include prescriptions, bottled water, clothing, flashlights, a battery-powered radio, batteries, items needed for pets, insurance policies, your home inventory, passports/drivers licenses/ID cards, birth and marriage certificates, and bank account numbers and other financial information.

The South Carolina Department of Insurance is implementing an awareness and media campaign with a focus on the importance of planning, preparing and protecting one’s family and home against storms and severe weather. The program provides tips and helpful information to help guide South Carolinians through the process of identifying their risks and planning now for what may lie ahead.

What is the insurance industry’s impact on our economy?

The insurance industry has a significant impact on South Carolina’s economy. Our industry employs more than 41,500 people, pays almost $215 million in state premium taxes, and contributes about $3.7 billion to South Carolina’s gross state product. Perhaps of greater importance, property and casualty insurance companies paid about $4.5 billion in claims to help individuals and businesses recover from losses in 2014. Life insurance and claims and benefits payments in the state were $5.8 billion that same year. In 2014, Property Claims Services (PCS) declared three separate catastrophes (defined as an event that causes $25 million or more in direct insured losses to property and that affects a significant number of policyholders and insurers) in South Carolina, and estimates that losses for these events exceeded $485 million. According to the Insurance Information Institute, wind and hail are consistently the most frequent cause of loss for property damage, and South Carolina is no exception.

What about shopping for insurance?

Insurance is, perhaps, a unique industry in some ways, but it is also a highly competitive industry. When the market is competitive, consumers win because they have more options.

While many insurance policies have some standardization such as common coverages and definitions, insurers are constantly trying to differentiate themselves from their competitors.

Just like in other industries, insurers compete for business on a combination of product, price, and service. While we, as consumers, often focus on the cost of our insurance when we’re shopping, it is important to understand that all policies and companies are not built the same.

For example, some companies may want to position themselves as a low-cost provider. This might steer that company into offering reduced coverage. Another company may want to offer the best coverage available. Their customers will feel secure with their coverages, but they might have to pay a bit more for the increased protection. Other companies may tout customer satisfaction, financial ratings, and the process in which they process claims.

With all of these options available, it is important for consumers to shop around. Make sure that you are working with an agent or other insurance professional so that you can find the best combination of coverage, service, and price that works for you. With so many policies offering different coverages, limits, and deductibles, just make sure you are comparing apples to apples.

Agents can be a tremendously helpful resource. Agents are trained to ask you questions that help identify your true needs, which will help reduce the potential for coverage gaps. Additionally, agents can help explain policy provisions to help you understand your insurance, and answer any additional questions that you may have.

Remember, shopping for insurance costs nothing but your time. We often encourage consumers to shop regularly (about every few years or so), especially if they have experienced certain life events or changes. For example, if you buy a new car, or add a new car to your household, you’ll not only want to notify your insurer, but it might be a reminder to see if there is a better option for you. Do you have a teenager who is starting to drive? Maybe you purchased a new house, remodeled, or made improvements to your existing home. Did you buy new furniture, jewelry, or electronics? You’ll want to make sure you have coverage for these items.

Other life events can affect your insurance too. Did you get married, have children, or change your job recently? The bottom line is: in a well-functioning marketplace, there are a variety of competitors whose products fill different and competitive niches. Customers should use this to their benefit by regularly shopping around to find the best insurance solution for their individual situations. Agents and customer service representatives are readily available to help you understand your options, answer your questions, and help you find the right fit for you.

Our industry is beginning to see some alarming trends on the auto insurance side. Unfortunately, we have seen some significant increases in the frequency (how many accidents) and average severity (the cost of repairs and medical care) of auto accidents in South Carolina.

South Carolina has seen an increase in auto fatalities. In 2016, there were 1,017 vehicle related deaths. So far, not even halfway through 2017, we have seen more than 400 fatalities on our state’s roads.

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Margaret Brackett

Contributing Columnist

Margaret Brackett is from Newberry. Her columns appear weekly in The Newberry Observer.