The South Carolina Wind Pool: Wind and Hail Insurance on Hilton Head
The South Carolina Wind and Hail Underwriting Association, known as the wind pool, insures coastal homes against wind and hail when private insurers won’t. All of Hilton Head Island is in its area, and it insures a house or condo for up to $1.3 million.
What the South Carolina Wind Pool Is
The wind pool is an association of the insurers that write property cover in South Carolina, set up by state law to cover wind and hail on the coast. It writes nothing else: no fire, theft or liability, and no flood. Its area is the coast of five counties. In Beaufort County that’s everything east of the west bank of the Intracoastal Waterway, which takes in all of Hilton Head Island.
Wind and hail
Damage to the building and its contents from wind and hail, including a named storm.
Flood, fire, theft, liability
Those stay on a homeowners policy, and flood on a flood policy of its own.
Houses, condos, townhouses
Homes, condo units, mobile homes that meet its rules, and businesses. Not farms or factories.
Anything over the water
A building wholly or partly over water at any time, even at high tide, can’t be insured.
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When a Hilton Head Home Ends Up in the Wind Pool
Near the ocean, some private insurers write a homeowners policy with wind and hail left out, or won’t write the home at all. The owner then buys the wind and hail part from the wind pool. The association asks owners to try private insurers first: it’s there for homes they won’t cover for wind, and it usually costs more and covers less.
Two policies, two deductibles. A home in the wind pool usually has a homeowners policy for everything but wind, a wind pool policy for wind and hail, and a flood policy.
The house has to qualify. It must meet building codes and floodplain rules and be kept up, especially the roof.
You apply through an agent. A licensed agent submits the application, with photos of the home. To check an address, the association’s website has an eligibility search by street address.
Wind Pool Limits and Deductibles
$1.3 million
For a house, townhouse or condo unit: building, contents and loss of use together. Businesses: $2.5 million.
3% deductible
Standard on Hilton Head, charged separately on the building and the contents. Higher deductibles cost less.
1% deductible
A thunderstorm or hail that isn’t a named storm: 1% of the limit, from $250 to $25,000.
Actual cash value
What the damaged part was worth. Replacement cost is an add-on for a single-family home you live in.
A 3% deductible is 3% of the policy limit, not of the damage. On a house insured for $600,000, the owner pays the first $18,000 of a named-storm claim to the building. The named-storm deductible is never less than $1,000 or more than $75,000 at 3%. The association doesn’t sell a deductible buy-back.
Insure to value. The home must be insured for at least 80% of its value, and for 100% (or the $1.3 million maximum) to add replacement cost.
Replacement cost needs a flood policy. If no flood policy is in force when the claim comes in, the loss is paid at actual cash value.
Above $1.3 million. State law says the wind pool’s full limit is used first, and an excess wind policy goes on top.
Rentals and second homes. Replacement cost is only for a principal residence, so a second home or a vacation rental is paid at actual cash value. More on vacation rental insurance.
The 15-Day Wait
A new wind pool policy starts after a 15-day wait, counted from the day the association receives the signed application, the photos and the full premium. Private insurers usually stop writing new policies once a storm is close, so buy or change wind cover well before hurricane season, which runs from June 1 to November 30. Flood cover has its own 30-day wait: see how much flood insurance is in South Carolina.
Frequently Asked Questions
Updated
What is the South Carolina Wind and Hail Underwriting Association?
The state’s wind pool: an association of insurers, set up by state law, that insures coastal homes and businesses against wind and hail when private insurers won’t. It covers nothing else, so fire, theft, liability and flood need other policies.
Is Hilton Head Island in the South Carolina wind pool area?
Yes, all of it. In Beaufort County the area is everything east of the west bank of the Intracoastal Waterway.
When does a Hilton Head home end up in the wind pool?
When the homeowners insurer leaves wind and hail out of the policy or won’t write the home. The owner keeps a homeowners policy for everything else and buys wind and hail cover from the wind pool through an agent.
What is the wind pool deductible on Hilton Head?
3% of the limit for a named storm, charged separately on the building and the contents, and 1% for other wind and hail. On a house insured for $600,000, the 3% deductible is $18,000.
How much will the South Carolina wind pool insure?
Up to $1.3 million for a house, townhouse or condo unit, counting the building, contents and loss of use together, and $2.5 million for a business. Excess wind cover can go on top.
How long does a wind pool policy take to start?
15 days from when the association receives the signed application, photos and full premium.
Does the wind pool cover flooding or storm surge?
No. Flood, including storm surge, needs a separate flood policy, which usually takes 30 days to start.
