HB 1305 Coastal Insurance Plan

This is a copy of an email that I received regarding the "Beach Plan". You may all draw you own conclusions.

Thank you for your email regarding House Bill 1305.  House Bill 1305 made sweeping changes to the NC Coastal Insurance Plan.  These changes will not only protect the integrity of the plan, they will also protect all NC rate payers in the future.  The changes made include the following:

Reduces the residential property value that is insurable from $1.5 million to $1 million. 

Reduces personal contents coverage under the Beach Plan from 70% to 40% and mandates that premiums reflect the reduction in contents coverage. 

Mandates that mitigation credits be given to homeowners who make the effort to build or renovate their homes to withstand strong winds. (storm shutters, special windows, etc.)  These building methods will reduce the loss of property.

Requires the beach plan to provide to anyone in the general public information on its operations and activities.  

Maintains current surcharges in the beach plan to 5% & 15%.

Protects the surplus in the fund from being raided.

These changes, as well as many others in the bill, will protect the members of the beach plan from the unfair increases in premiums experienced in recent years, while also taking steps to increase the number of companies writing policies in NC, which should lead to lower rates for the entire state.

Again, thank you for your email.  If there is anything I can do to assist you, please do not hesitate to contact me.

                Chris Dillon
                Director of Special Projects
                President Pro Tempore's Office
                North Carolina Senate
                chrisd@ncleg.net