South Carolina's "other" personal lines questions center on the South Carolina Wind and Hail Underwriting Association (S.C. Code 38-75-310 to 38-75-460). It is the residual market for coastal wind and hail coverage. South Carolina has no FAIR plan, so this association is the state's main property residual market. Flood (NFIP), umbrellas, inland marine and other specialty coverages are covered in the national guides.

Purpose and membership

• The Association exists to assure an adequate market for wind and hail coverage on the coast (38-75-320).
• It is a residual market. Coastal homeowners who can't get wind and hail coverage in the standard market apply to it (38-75-330).
• Members are insurers writing property insurance statewide. They share profits and losses in proportion to their net direct premiums written in South Carolina (38-75-370).

Where it applies

• The seacoast area includes coastal counties such as Horry County (38-75-310(7)).
• In Horry County, the coastal area is everything east of U.S. 17 or By-Pass 17, whichever is farther west (38-75-310(5)(c)).
• The Director may expand the coastal area by order for up to 24 months at a time, but never beyond the seacoast area (38-75-460).

Eligibility

• Manufacturing property isn't "insurable property" (38-75-310(4)).
• A coastal structure begun on or after September 15, 1971 must have been built in substantial compliance with the building code.
• "Insurable interest" means any lawful and substantial economic interest in the property.

Applying and coverage (38-75-340 to 38-75-350)

Applications

• Must be made on the applicant's behalf by a licensed agent or broker.
• If the property is insurable and no premium is owed for prior insurance on it, the Association issues a policy of essential property insurance for a term of at least 1 year.

Coverage

• At the insured's request, additional living expense can be included.
• An insured may buy excess wind and hail coverage only after buying the maximum available from the Association.

Rates (38-75-400)

• Rates are set so the Association is self-sustaining.
• They are not meant to compete with the admitted market.

Appeals (38-75-350, 38-75-410)

• If an application for insurable property is denied, the applicant may appeal to the Director, who may order a policy issued.
• Appeals on rates or cancellations go to the Director within 60 days after the decision. Other appeals have 30 days.

Common exam traps

• No FAIR plan in South Carolina. The coastal residual market is the Wind and Hail Underwriting Association.
• Apply through a licensed agent or broker. Policies run at least 1 year.
• Excess wind coverage only after buying the Association's maximum.
• Manufacturing property and structures not built to code after 1971 aren't eligible.
• Appeals on rates or cancellations: 60 days.