Lawmakers Approve Hurricane Insurance Plan Fix

North Carolina legislators have approved reforms to an overextended hurricane insurance plan, capping potential costs to insurers while spreading the risk of a disaster to every property owner in the state.

The House voted 92-19 on Thursday to give the Beach Plan fix final approval. The state-created, privately run plan provides wind and homeowners insurance policies in 18 coastal counties.

The reforms put insured property owners statewide on the hook if a disaster forced the Beach Plan to pay out more than a $1 billion insurance industry cap.

The insurance commissioner said some companies threatened to leave the state if their now-unlimited risk wasn't capped.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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  • by Obama Snake Oil Co Location: Washington on Aug 7, 2009 at 06:17 AM
    Elvishasleftthebuilding....I have to go along with this for a reason. The wanted to go up on all insurance in the "coastal" areas of NC, yet Charlotte go wacked during Hugo and Raleigh got it during Floyd. Seems I have to agree with insurance here, all areas of the state have risk, not just the coast. Beach owners have to pay "flood insurance" for hurricanes and wind damage so they are footing extra money for the damage. Insurance was supposed to be paid in equally for the price or value of a house/property. So, if a tornado hits a family in Greensboro they have coverage just like someone having wind damage from a thunder storm.
  • by insurance on Aug 6, 2009 at 07:07 PM
    its not the peoples fault who have worked hard and can afford beach property. its the fact that the state cant balance a budgett. all areas have risk. A 3.6 earthquake was registerd last week in the Appalatchian mountains. Nationwide INsurance paid 30000 claims in ohio from hurrican katrina there is no such thing as a low risk area lol
  • by Anonymous on Aug 6, 2009 at 06:02 PM
    never used my insurance and it goes up. thanks to all who live in high risk areas. YOU should pay, not me
  • by elvisisbeached on Aug 6, 2009 at 04:06 PM
    Who in their right mind can possibly call this a fix? Words to describe this plan are: Taxpayer rip-off, social welfare for the insurance companies, legislator extortion, to name a few. Our "legislators" have lost their minds. I am beginning to hate them as much as I do our federal royalty in Washington. Thank me very much!!
  • by unk Location: enc on Aug 6, 2009 at 03:49 PM
    How many of the 92 that voted for this plan have beach houses? I want to know who to call to reserve my free weeks at their expense. Welfare for the rich!!!!!!

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