North Carolina Joint Underwriters and The State Wind Pool

In many cases the NCJUA is thought to be the only wind and hail insurance option. In some geographical areas it may be the better option. The main point to this article is to inform our North Carolina Homeowners about many other options that are available. Let's backtrack a bit first... We on the coastal counties of NC (All 41 counties East of I-95) are located in what in the insurance lingo world we call the CAT Market, meaning the Catastrophic Insurance Market. Defined further, we are in the hurricane prone insurance market. Specially the primary 19 coastal counties that border the Atlantic Ocean. The predicament that we endure is that many of the National Insurance Providers (Insurance companies that write coverage in all 50 states) are not in a financial position to absorb the wind and hail insurance coverage should major losses occur. If we have a severe hurricane season, they can't afford to pay out that much cash. So, they exclude the wind and hail coverage or any hurricane protection, and pass on the risk by placing the coverage with The North Carolina Joint Underwriters Association. The most recent lesson for the national insurance providers was Hurricane Katrina. We at NC Coastal Insurance also represent the state wind pool NCJUA. I have included information about their programs below this article.

The all inclusive home insurance policy. This means protection from fire, water damage, theft, vandalism, lightning, and a bunch of other perils that could occur, plus wind and hail coverage in one policy. Yes, you have access to homeowners insurance policies that will include the wind and hail, plus named storm protection included into your regular main home insurance coverage. Dwelling, Other Structures, Personal Property, Loss of Use, Liability, Medical Payments, & Wind and Hail. Full replacement value on the structure and all personal property.

Now let's discuss the subject of all the other insurance companies that service our coastal home insurance needs. Many of these companies only write insurance in the hurricane CAT markets. They are specific to the CAT market only. Geared and put together to specialize in the coastal hurricane prone gulf states and the East Coast. Many of the specialty insurance companies do not expose themselves to all of the hurricane CAT market states, and will only write business in a selective few states. These specialty insurance companies are top rated, financially stable, and have a very prominent reinsurance program. Reinsurance is the insurance coverage that insurance companies buy to posses the financial strength to sustain severe weather and all the potential claims that come along with major named storms.

SERVICES AND COVERAGES

NCJUA-FAIR Plan | NCIUA-Coastal Property Insurance Pool
NCJUA - FAIR ACCESS TO INSURANCE REQUIREMENTS (FAIR PLAN)

The FAIR Plan was created in 1969 by the General Assembly to provide an adequate market for essential property insurance, with the mission to encourage property improvements and arresting the decline of properties within the state of North Carolina. The FAIR Plan is not a facility of North Carolina State Government; however, the Plan of Operation is subject to review and approval by the North Carolina Commissioner of Insurance.

North Carolina Commissioner of Insurance

The FAIR Plan offers, to any person having an insurable interest in property, full peril commercial fire and dwelling fire within the state of North Carolina excluding the beach area (defined as that area of North Carolina south and east of the inland waterway including the area known as the Outer Banks).

The FAIR Plan is defined by North Carolina General Statutes as the "Market of Last Resort"; therefore, it is highly recommended that property owners attempt to obtain insurance in the standard market. Your Insurance Agent may assist you in placing coverage either in the standard market or in the FAIR Plan.

Insurance products offered in the FAIR Plan are:

  • Dwelling Fire (All Territories except for Beach Area)
  • Commercial Fire (All Territories except for Beach Area)
  • The Dwelling and Commercial Fire products provide coverage for windstorm and other perils such as fire, lightning, and vandalism and malicious mischief. These policy forms may be written on a replacement or actual cash value basis, subject to eligibility guidelines. Please note that contents coverage is only written under an actual cash valuation provision.

The maximum residential limit of building coverage is $750,000, with a limit for personal property capped at 40% of the approved building coverage.

The maximum commercial combined limit is $2.5 million; capped at a $6 million aggregate depending on fire wall divisions of the structure insured.

If the coverage required exceeds the maximum building limit of the FAIR Plan, then excess coverage must be purchased to the full value of the property, prior to the FAIR Plan providing the primary coverage.

You can find more information on the FAIR Plan via this website or you may contact your Insurance Agent, or call the Plan directly at 1.800.662.7048.

NCIUA - COASTAL PROPERTY INSURANCE POOL (CPIP)

The Coastal Property Insurance Pool, formerly known as the Beach Plan, was created in 1969 by the General Assembly to provide an adequate market for essential property insurance, ensuring the economic welfare of the beach and coastal areas of North Carolina. The Coastal Property Insurance Pool is not a facility of North Carolina State Government; however, the Plan of Operation is subject to review and approval by the North Carolina Commissioner of Insurance.

The Coastal Property Insurance Pool offers commercial, homeowner and dwelling windstorm coverage and homeowner coverage to any person having an insurable interest in property located in the 18 eligible coastal counties of North Carolina. The Coastal Property Insurance Pool also offers commercial fire and dwelling fire in a more limited area defined as the beach area (comprised of North Carolina south and east of the inland waterway, including the area known as the Outer Banks).

North Carolina Commissioner of Insurance

The Coastal Property Insurance Pool is defined by the North Carolina General Statutes as the "Market of Last Resort"; therefore, it is highly recommended that property owners attempt to obtain insurance in the standard market. Your Insurance Agent may assist you in placing coverage either in the standard market or in the Coastal Property Insurance Pool.

Insurance products offered in the Beach Plan are:

  • Dwelling Fire (Beach Territories only)
  • Commercial Fire (Beach Territories only)
  • Homeowner (Beach and Coastal Territories)
  • Dwelling Windstorm and Hail (Beach and Coastal Territories)
  • Homeowner Windstorm and Hail (Beach and Coastal Territories)
  • Commercial Windstorm and Hail (Beach and Coastal Territories)
  • Crime (Beach Territories only)
  • The Homeowner, Dwelling, and Commercial Fire products provide coverage for windstorm and additional perils such as fire, lightning, and vandalism and malicious mischief. These policy forms provide building coverage on a replacement or actual cash value basis, subject to eligibility guidelines. Please note that contents coverage is only written with a valuation of actual cash value.

The Windstorm and Hail products offered must match as closely as possible the insured's primary insurance policy, providing the remaining coverages as it pertains to policy dates, limits of coverage, and policy form (i.e. DP 00 01, DP 00 02, HO 00 03). The eligibility for a Windstorm and Hail policy requires that the insured have an active primary coverage policy provided by an admitted carrier in North Carolina that has excluded windstorm.

The maximum residential limit of building coverage is $750,000, with a limit for personal property capped at 40% of the approved building coverage.

The maximum commercial combined limit is $3 million; capped at a $6 million aggregate depending on fire wall divisions of the structure insured.

If the coverage required exceeds the maximum building limit of the Coastal Property Insurance Pool, then excess coverage above the limit provided must be purchased to the full value of the property, prior to the issuance of a primary policy by the Coastal Property Insurance Pool.

You can find more information on the Coastal Property Insurance Pool via this website or you may contact your Insurance Agent, or call the Plan directly at 1.800.662.7048

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