Arson Cases Remain Unsolved Throughout South Carolina

Tips to the South Carolina Arson Hotline (1-800-92-ARSON) could solve several arson cases throughout the state and lead to rewards for callers. Callers can remain anonymous.

Arson fires increase the cost of insurance to all consumers. According to the FBI, the average dollar loss for arson in the United States is $17,289. The Insurance Information Institute reports arsonists destroyed nearly $900 million in insured property and killed 295 civilians across the United States in 2007.

South Carolina Arson Hotline rewards are funded by the Independent Insurance Agents and Brokers of South Carolina Foundation. Founded in 1899, the Independent Insurance Agents and Brokers of South Carolina is the oldest and largest association of property and casualty insurance agents in South Carolina.

The South Carolina Law Enforcement Division (SLED) is responsible for assisting local law enforcement and fire services with the investigation of arson, explosives and related crimes. Additional resources include arson and bomb dogs, technical equipment and bomb squad personnel to assist local agencies.

The South Carolina Insurance News Service reports the following facts about the South Carolina Arson Hotline:


• The South Carolina Arson Hotline (1-800-92-ARSON) is a statewide, toll-free number, available 24 hours a day, for reporting information about suspicious fires.
• More than $100,000 has been offered through the South Carolina Arson Hotline since its inception and more than $25,000 has been rewarded.
• The largest reward offered was $22,000 in the case of the Effingham Baptist Church fire. The largest reward paid was $7,000 in the cases of the Springhill AME Church in Dillon and Islamic Center and Masjid of Greenville fire in 1997.
• Arson Hotline yard signs, posters, calling cards and bumper stickers are available FREE from the South Carolina Insurance News Service.
• Vandalism is the leading cause of arson. An Insurance Research Council study suggests only 14 percent of arson suspects are motivated by a desire to defraud an insurance company but other studies report higher rates.


For more information on the South Carolina Arson Hotline, contact the South Carolina Insurance News Service at 803-252-3455 or link to www.scinsurance.net. To report a tip to the South Carolina Arson Hotline, call 1-800-92-ARSON.

Attorney General's Insurance Fraud Division Releases 2008 Report

Attorney General Henry McMaster has issued the 2008 annual insurance fraud report.

During 2008 the Attorney General’s Insurance Fraud Division secured 135 convictions for insurance fraud, a 44 percent increase over 2007 with 94 convictions. This number represents the most convictions by the Insurance Fraud Division since its creation in 1994.

“With the state of our economy, more and more people in South Carolina are turning toward insurance fraud. They think it’s a quick fix for their personal financial situation and don’t think it affects anyone else,” said Edwin Constant, president of the South Carolina Insurance Fraud Investigators, “In reality it affects everyone in the state.”

Last year there were 815 insurance fraud complaints received by the Insurance Fraud Division, compared to 712 complaints received in 2007. The total amount of insurance fraud reported was more than $3.3 million, a drop from the previous year with $8.4 million.

Nearly $400,000 in fines and restitution were ordered paid by the courts. This brings the total to nearly $78 million in insurance fraud reported and nearly $6 million in monies collected since the South Carolina Attorney General's Insurance Fraud Division began prosecuting insurance fraud cases in 1995.

Highlights from the Attorney General’s 2008 Insurance Fraud Report:

• The greatest number of complaints were due to automobile insurance fraud (57%) and personal/commercial property fraud (12%) followed by workers’ compensation fraud (11%) and health/medical fraud (10%).
• Cases have come from all around the state of South Carolina and break down by region as follows:

◦ Low Country – 37% (175)
◦ Pee Dee – 22% (106)
◦ Piedmont – 22% (103)
◦ Midlands - 19% (88)

• Charleston County reported both the highest number of complaints made (29) and the highest total amount of insurance fraud reported with $ 921,756.49 reported in insurance fraud.


The Insurance Fraud Division currently has five attorneys and four South Carolina Law Enforcement Division investigators working to stomp out insurance fraud in South Carolina.

The South Carolina Insurance Fraud Hotline, 1-888-95-FRAUD, is available 24 hours a day, 7 days a week for reporting insurance fraud, which can be a felony in South Carolina. All reports remain confidential.

For a complete copy of the 2008 Annual Report from the Office of the Attorney General's Insurance Fraud Division or to review county data, link to the South Carolina Insurance News Service at www.scinsurance.net.

13 Convictions for Auto Fraud in Colleton County Brings Total to More than 30

Another 13 convictions for insurance fraud in Colleton County last week brought the total to more than 30 since last September. On Thursday, May 14, the following defendants each pled guilty to one count of the lesser-included offense of Presenting False Claims for Payment more than $1,000 but less than $5,000 before The Honorable Perry Buckner in Colleton County:

• Nicole Elliott, age 25, of 106 Del Ray Drive, Walterboro;
• Nicole Elliott, age 25, of 106 Del Ray Drive, Walterboro;
• Tamika Elliott, age 32, of 8387 Charleston Highway, Walterboro;
• Gladys Michelle Middleton, age 26, of 559 Orangeburg Road, Summerville;
• Sherie Lisa Middleton, age 23, of 189 Beach Road, Walterboro;
• Jason Jarmal Givens, age 29, of 502 King Street, Walterboro;
• Verdie Elaine Hugie, age 46, of 215 Calloh Drive, Walterboro
• Rickie Hugie, age 48, of 7000 Middle Street, Columbia;
• Sharon Denita Donaldson, age 26, of 203 Corideau Street, Walterboro;
• Timothy Tyrone Behling, age 23, of 49 Enchanted Lane, Walterboro;
• Dexter Raynard Landy, age 21, of 500 Bowman Lane, Walterboro; and
• Preston Tremaine Roberts, age 19, of 3399 Cooks Hill Road, Walterboro.

Also, defendants Phyllis Simmons, age 48, of 8249 Ritter Road, Walterboro, and Jamie Brown, age 35, of 40 Pentgage Court, Yemassee, each pled guilty to two counts of the lesser-included offense of Presenting False Claims for Payment more than $1,000 but less than $5,000. All defendants were originally indicted with Presenting False Claims for Payment, $5,000 or more.

On or about March 29, 2005, defendants Nicole Elliott, Tamika Elliott and Phyllis Simmons presented or caused to be presented false claims for payment to Safe Auto Insurance Company totaling over $10,000. They claimed they were involved in a car accident after an unknown vehicle ran them off Cooks Hill Road in Walterboro causing their car to catch fire. Investigation revealed the wreck was staged and the fire was intentionally set. Nicole Elliott had a prior conviction for operating an uninsured vehicle. Judge Buckner sentenced Nicole Elliott to four years imprisonment suspended with probation for four years and ordered her to pay restitution of $4,423 to Safe Auto and $283 to the South Carolina Department of Health and Human Services. Tamika Elliott was sentenced to four years imprisonment suspended with probation for four years and ordered to pay restitution of $1,636 to Safe Auto and $647 to Colleton County Fire-Rescue. Simmons was sentenced on this count to four years imprisonment suspended with probation for five years and ordered to pay $1,388 to Safe Auto and $647 to Colleton County Fire-Rescue. Two co-defendants in this case pled guilty previously.

Defendant Phyllis Simmons also presented or caused to be presented false claims for payment to Permanent General Assurance Group totaling about $20,000 on or about February 15, 2007. She said that she struck a tree after she lost control of her car at Blackcreek & Meewville Roads in Colleton County, but investigation revealed the wreck was staged. She was sentenced to four years imprisonment suspended with probation for five years on this count and ordered to pay restitution of $1,876 to Permanent General and $656 to Colleton County Fire-Rescue. She was also ordered to pay restitution of $6,628 to Peak Property & Casualty Company as part of her agreement. Her sentences were concurrent.

On or about April 17, 2006, Defendant Jamie Brown presented or caused to be presented false claims for payment to Peak Property & Casualty Company totaling over $7,000. He claimed he was a passenger in a car that was hit by an unknown vehicle, run off Cooks Hill Road in Walterboro, and burst into flames. Investigation revealed that the wreck was staged and the fire was intentionally set. Brown had prior convictions for assault and battery of a high and aggravated nature and narcotics and weapons charges. Judge Buckner sentenced him on this count to five years imprisonment suspended to six months imprisonment and four years probation. He was ordered to pay restitution of $1,397 to Peak Property. A co-defendant in this case pled guilty previously.

Defendant Jamie Brown presented or caused to be presented false claims for payment totaling over $8,000 to Peak Property & Casualty on or about April 26, 2007. He claimed that he was involved in another car accident in Walterboro after the driver swerved to miss a deer, but investigation revealed the wreck was staged. He was sentenced to five years imprisonment on this count suspended to six months imprisonment and four years probation. He was ordered to pay $1,406 to Peak Property on this count. His sentences were concurrent. A co-defendant in this case also pled guilty previously.

On or about July 2, 2007, defendants Gladys Middleton, Sherie Middleton and Jason Givens presented or caused to be presented false claims for payment to Bristol West Insurance Group. They claimed they were involved in a car accident on Confederate Highway in Walterboro, but investigation revealed the wreck was staged. Givens had a prior conviction for resisting arrest. Judge Buckner sentenced them to four years imprisonment suspended with probation for four years. Gladys Middleton was ordered to pay restitution of $2,608 to Bristol West, $719 to Colleton County Fire-Rescue and $738 to Health and Human Services. Sherie Middleton was ordered to pay $2,779 to Bristol West and $349 to Health and Human Services. Givens was ordered to pay $4,641 to Bristol West and $580 to Lodge Rescue Squad.

On or about August 15, 2007, defendants Verdie Hugie and Rickie Hugie presented or caused to be presented false claims for payment to State Farm Insurance in a total amount over $35,000. They claimed they had been involved in a car accident on Mt. Carmel Rd. in Walterboro, but investigation revealed the wreck was staged. Verdie Hugie had a prior conviction for shoplifting and was sentenced to four years imprisonment suspended with probation for five years. She was ordered to pay restitution of $13,677 to State Farm. Rickie Hugie had a prior record of assault and battery and was sentenced to four years imprisonment suspended with probation for five years. He was ordered to pay $11,461 to State Farm. A co-defendant in this case pled guilty previously.

On or about September 4, 2007, defendants Sharon Donaldson, Timothy Behling, Dexter Landy and Preston Roberts presented or caused to be presented false claims for payment to Nationwide Insurance Company. They claimed they were involved in an accident also on Mt. Carmel Rd. after an unknown vehicle ran them off the road and into a tree. However, investigation revealed the wreck was staged. Donaldson had prior convictions for assault, breach of peace, and assault and battery of a high and aggravated nature. Behling, Each were sentenced to four years imprisonment suspended with four years probation. Donaldson was also ordered to pay restitution of $3,398 to Nationwide, $562 to Colleton County Fire-Rescue and $124 to Health and Human Services. Behling and Landy were each ordered to pay $3,398 to Nationwide and $562 to Colleton County Fire-Rescue and Roberts was ordered to pay $3,398 to Nationwide and $637 to Colleton County Fire-Rescue.

These cases were investigated by the South Carolina Law Enforcement Division and the National Insurance Crime Bureau and prosecuted by the South Carolina Attorney General's Office.

Report Insurance Fraud to the South Carolina Insurance Fraud Hotline 1-888-95-FRAUD. All reports remain confidential.

For more information on insurance fraud in South Carolina or for an interview call 803-252-3455 or e-mail alove@scinsnews.com.

Myrtle Beach Wildfire is a Wake-Up Call for Homeowners to Check Insurance Coverage

The wildfire that destroyed at least 75 homes and damaged dozens more is a reminder that homeowners need to know what their insurance policy covers and how to prepare for the claims process before disaster strikes. This is particularly important as the Atlantic hurricane season begins June 1.

“Now is the time to ensure you have the insurance protection you need to rebuild your home and replace your personal belongings,” says Allison Dean Love, executive director of the South Carolina Insurance News Service, “You don’t want to be agonizing over your insurance coverage when hurricane force winds are blowing or when flames are at your door.”

The South Carolina Insurance News Service offers these tips for homeowners to ensure they have proper insurance coverage:

• Conduct an annual insurance checkup. Many people don’t think about their insurance until they need it. Understanding what is and isn’t covered in your homeowner’s insurance policy offers peace of mind in understanding how your insurance company will assist in rebuilding your home and replacing your personal belongings after they are damaged or lost. Homeowners should check with their insurance agent to ensure that their policy coverage limits are in keeping with local building costs and have their coverage adjusted to include home remodeling and additions. If you don’t have replacement coverage, consider spending a few extra dollars for coverage that pays for the cost of replacing the damaged property without deduction for depreciation.

• Create a home inventory. Make a home inventory that includes lists, pictures or a videotape of the contents of your home to help you remember all the possessions you've accumulated over the years if they are destroyed. Having an up-to-date home inventory will help get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance. Free downloadable home inventory software is available at www.scinsurance.net by clicking on the icon marked “DOWNLOAD home inventory software.”

• Know what is covered by your policy…and what is not. A typical homeowner insurance policy covers damage resulting from fire, windstorm, hail, water damage (excluding flooding), riots and explosion as well as other causes of loss, such as theft and the extra cost of living elsewhere while the structure is being repaired or rebuilt. Talk to your insurance agent about purchasing a separate flood or earthquake policy. If you live along the coast, you may need as many as six or seven different insurance policies to guarantee that your home is fully covered.

· Be prepared to evacuate. If you have to evacuate or cannot live in your home while it is being rebuilt or repaired, you may have coverage available for out-of-pocket living expenses. Contact your insurance agent or company to let them know where you are staying and maintain records and receipts for hotel rooms, meals, etc.



For more information, visit the South Carolina Insurance News Service on the Web at www.scinsurance.net.

59-Year-Old Woman Fakes Burglary, Pleads Guilty to Insurance Fraud

Nancy Moser, 59, of 4769 Mt. Carmel Road, Lancaster, South Carolina, pled guilty to Forgery, no dollar amount, which carries a penalty of up to three years confinement and to Presenting a False Claim for Payment, less than $1,000, which carries a penalty of zero to 30 days confinement and/or a fine up to $500. Judge John C. Hayes, III of Lancaster County sentenced Moser on the Forgery charge to one year suspended to six months probation and on the Presenting a False Claim for Payment charge to 30 days suspended. The sentences will run concurrently.

The defendant was originally charged with Forgery no dollar amount, and Presenting a False Claim for Payment over $5,000.

Moser reported that a burglary occurred at her residence in Lancaster County on February 5, 2007. She submitted an inventory loss form to Nationwide Insurance for over $9,000 in losses to include furniture, appliances and electronic equipment. An investigation revealed that the retail stores indicated on the loss form did not sell the items listed as stolen in the insurance claim. A majority of the items listed as stolen were found at Ms. Moser’s daughter’s home.

Ms. Moser also submitted a police report to Nationwide Insurance during the claims process. On that report was a handwritten note to indicate other items were stolen that were not listed on the report. This note was signed, Captain Andy Rollins of the Lancaster County Sheriff’s Office. Captain Rollins confirmed that he did not write the note. The original police report does not contain this note.

This case was prosecuted by the South Carolina Attorney General's Office.

The South Carolina Insurance News Service reports a few interesting facts related to insurance fraud:

• Insurance fraud costs nearly $120 billion a year, with healthcare fraud at $85 billion a year and property and casualty insurance fraud at $30 billion a year, according to the Insurance Information Institute.
• Each year consumers spend about $1,000 in total increased insurance premiums, taxes and cost of goods and services according to the Coalition Against Insurance Fraud.
• There were 712 complaints of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007. There were 94 criminal convictions and 72 civil remedies.
• The total amount of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007 was nearly $8.4 million.
• Cases have come from all around the state of South Carolina and break down by region as follows:
Piedmont - 28% (115)
Low Country - 24.5% (100)
Pee Dee - 24.5% (100)
Midlands - 23% (95)
• The South Carolina Insurance Fraud Hotline 1-888-95-FRAUD is available toll-free, 24 hours a day, 7 days a week.
• Insurance fraud can be "hard" or "soft." Hard fraud occurs when someone deliberately fakes an accident, injury, theft, arson or other loss to collect insurance money illegally. Soft fraud occurs when someone inflates a claim or underestimates the number of miles driven on an insurance application.

Report Insurance Fraud to the South Carolina Insurance Fraud Hotline 1-888-95-FRAUD - All reports remain confidential.

Tips on How to File an Insurance Claim After the Wildfire

Victims in the Myrtle Beach area whose property was damaged by wildfires should contact their insurance company immediately. Damage caused by fire and smoke is covered under standard homeowners, renters and business insurance policies and under the comprehensive portion of an auto insurance policy. There is also coverage for water or other damage incurred by firefighters in the course of extinguishing a fire.

If your property was damaged in the wildfires, the South Carolina Insurance News Service offers the following advice to speed the insurance claims settlement process:

Be prepared to give your agent or insurance company representative a description of the damage to your property. Also, provide your agent with a copy of your home inventory if you have one. Your agent will report the loss immediately to your insurance company or to a qualified adjuster who will contact you as soon as possible in order to arrange an inspection of the damage. Make sure you give your agent a telephone number where you can be reached.

If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims process and will assist the adjuster in the investigation.

Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.

Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.

Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses in making temporary repairs.

Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.

If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts, as these may be covered by the Additional Living Expenses section of your homeowner’s policy.

If your business has been damaged, and you have business income (business interruption) insurance, it covers the profits your business would have earned, based on financial records, had the disaster not occurred. The policy covers additional operating expenses incurred as a result of the disaster, such as the extra expense of operating out of a temporary location.

The most serious losses will be given priority.

If your home has been destroyed or seriously damaged, your agent will do everything possible to ensure your claim is given priority.

The South Carolina Insurance News Service has a free brochure, Settling Insurance Claims after a Disaster. Consumers can get a copy on the South Carolina Insurance News Service web site at www.scinsurance.net.


The Institute for Business & Home Safety also provides wildfire protection tips at www.disastersafety.org

South Carolina Arson Hotline (1-800-92-ARSON) Fights Fires

National Arson Awareness Week – May 3-9, 2009

Every year in South Carolina, millions of dollars in property is destroyed due to arson. During the first quarter of 2009, SLED's Arson Team received 49 requests for assistance investigation suspicious fires. Of the 25 requests ruled arson, there have been four arrests and a total of $915,000 in property damage.

“These statistics demonstrate the need for continued community support in our efforts to reduce and solve arson crimes. We hope to raise awareness of these costly arson fires during National Arson Awareness Week. There are steps being taken to combat this crime in our state. South Carolina has a statewide program aimed at putting arsonists behind bars - the South Carolina Arson Hotline," says Allison Dean Love, executive director of the South Carolina Insurance News Service. Founded in 1982, the South Carolina Arson Hotline has received thousands of calls resulting in arson fires being solved.

“The South Carolina Arson Hotline is a vital tool in responding to and solving crimes across our state. SLED is proud to partner with the Independent Insurance Agents and Brokers of South Carolina and the South Carolina Insurance News Service in protecting the citizens and the economy’s interest throughout our great state," said Assistant Director Tim James of SLED.

Hotline rewards are funded by the Independent Insurance Agents and Brokers of South Carolina Foundation. Jules Anderson, chairman of the IIABSC board said, “Arson is a serious crime in South Carolina and increases the cost of insurance to everyone. The Independent Insurance Agents and Brokers of South Carolina are pleased to have been a sponsor of the South Carolina Arson Hotline rewards for over 26 years. The hotline is a valuable resource for law enforcement officials and the citizens of South Carolina. We are pleased with the results of the hotline and look forward to paying more rewards to South Carolinians who use the hotline in the future.”

Many times callers do not wish to receive a reward. Occasionally, depending on the type of fire, the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms, Palmetto Project and other insurance companies have also assisted in the rewards.

Many arson cases around South Carolina remain unsolved. A tip to the South Carolina Arson Hotline (1-800-92-ARSON) could help solve those cases and lead to a reward for the caller. Callers can remain anonymous.


The South Carolina Insurance News Service reports the following facts about the South Carolina Arson Hotline:

Ø The South Carolina Arson Hotline (1-800-92-ARSON) is a statewide, toll-free number, available 24 hours a day, for reporting information about suspicious fires.

Ø More than $100,000 has been offered through the South Carolina Arson Hotline since its inception and more than $25,000 has been rewarded.

Ø Rewards through the South Carolina Arson Hotline have been paid in Aiken County, Charleston, Clinton, Columbia, Dillon County, Gaffney, Greenville County, Hemingway, Jasper County, Lancaster, Lake City, Laurens, Marion, Scranton and Westminster.

Ø The largest reward offered was $22,000 in the case of the Effingham Baptist Church fire. The largest reward paid was $7,000 in the cases of the Springhill AME Church in Dillon and Islamic Center and Masjid of Greenville fire in 1997.

Ø Arson Hotline yard signs, posters, calling cards and bumper stickers are available FREE from the South Carolina Insurance News Service.

Ø Arson fires increase the cost of insurance to all consumers. According to the FBI, the average dollar loss for arson in the United States is $17,289.

Ø The Insurance Information Institute reports arsonists destroyed nearly $900 million in insured property and killed 295 civilians nationwide in 2007.

Ø Vandalism is the leading cause of arson. An Insurance Research Council study suggests only 14 percent of arson suspects are motivated by a desire to defraud an insurance company but other studies report higher rates.

To report a tip to the South Carolina Arson Hotline, call 1-800-92-ARSON.

Policeman’s Accomplice Pleads Guilty to Insurance Fraud

Columbia, S.C. – April 20, 2009 – James David Morris, 40, of 439 Chester Street, Coward, South Carolina pled guilty in Florence County to Burning Personal Property to Defraud an Insurer. The charge carries a punishment of one to five years in prison. Judge Michael Nettles sentenced Morris to one year suspended to one year probation to terminate upon payment of restitution to State Farm Insurance Company.

On or about July 8, 2008, Robert Brendon Smith, a former Olanta, South Carolina police officer, reported his 2001 Dodge Dakota Truck as stolen from 412 Gause Canal Road in Coward. The truck was valued at over $8,000. The vehicle was found completely burned. It was later determined that Morris had helped Smith burn the truck due to the vehicle’s mechanical problems. The claim to State Farm Insurance Company was eventually withdrawn. Morris' co-defendant, Smith, pled guilty to the same charge on March 2, 2009. The case was prosecuted by the South Carolina Attorney General's Office.


The South Carolina Insurance News Service reports a few interesting facts related to insurance fraud:

► Insurance fraud costs nearly $120 billion a year, with healthcare fraud at $85 billion a year and property and casualty insurance fraud at $30 billion a year, according to the Insurance Information Institute.

► Each year consumers spend about $300 per household just in additional insurance premiums, according to the National Insurance Crime Bureau and about $1,000 in total increased insurance premiums, taxes and cost of goods and services according to the Coalition Against Insurance Fraud.

► There were 712 complaints of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007. There were 94 criminal convictions and 72 civil remedies.

► The total amount of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007 was nearly $8.4 million.

► Cases have come from all around the state of South Carolina and break down by region as follows:

Piedmont - 28% (115)
Low Country - 24.5% (100)
Pee Dee - 24.5% (100)
Midlands - 23% (95)

► The South Carolina Insurance Fraud Hotline 1-888-95-FRAUD is available toll-free, 24 hours a day, 7 days a week.

► Insurance fraud can be "hard" or "soft." Hard fraud occurs when someone deliberately fakes an accident, injury, theft, arson or other loss to collect insurance money illegally. Soft fraud occurs when someone inflates a claim or underestimates the number of miles driven on an insurance application.

Report Insurance Fraud to the South Carolina Insurance Fraud Hotline 1-888-95-FRAUD - All reports remain confidential.

South Carolina Homeowners and Businesses Should Consider Flood Insurance

No matter where in South Carolina you live, you may need flood insurance to help protect your home, business, family and financial security.

With hurricane season beginning June 1, and a 30-day waiting period required for flood insurance to take effect, now is the time for South Carolina homeowners and businesses to ensure they have adequate coverage.
Flooding is the nation’s number one natural disaster. Most home and business owners’ insurance policies do not cover flood damage.

South Carolina has seen a nearly 25 percent increase in the number of National Flood Insurance Program policies issued during the last three years. Potential driving factors include increased flood awareness since Hurricane Katrina, increased development in coastal high-risk flood areas and changes to flood maps that broaden the high-risk areas.

South Carolina has experienced flooding from many hurricanes and tropical storms during the last 20 years, including Hugo, Fran, Bonnie, Floyd, Charley, Gaston and Frances. Hurricanes can cause major flooding, sometimes hundreds of miles inland. Slow-moving tropical storms can bring torrential rains that saturate the ground and cause water buildup in low-lying areas.

According to the National Flood Insurance Program, or NFIP, if you live in a moderate- to low-risk area for flooding and are eligible for a “Preferred Risk Policy”, your flood insurance premium might be as low as $119 per year, including coverage for your property’s contents. The national average premium for a flood policy is $544 a year. The average premium in South Carolina is $550. To determine your home’s risk and for pricing information, visit www.floodsmart.gov.

Many private insurance companies issue flood insurance under an arrangement with the Federal Emergency Management Agency (FEMA). Insurance companies issue the policy under the company's name and handle claims using the rules, coverages and procedures specified by the NFIP.

Homeowners can buy up to $250,000 of coverage for the structure and up to $100,000 for your personal contents. Businesses can buy up to $500,000 in coverage for the structure and $500,000 in contents coverage. Some private insurance companies offer excess flood protection, which provides higher limits of coverage than the NFIP, in the event of catastrophic loss by flooding. Separate contents coverage is also available. Renters can buy protection for up to $100,000.

In order to determine how much insurance you need, download free home inventory software from the South Carolina Insurance News Service Web site at www.scinsurance.net or call 803-252-3455.

Allstate Looking to Grow Agency Force in South Carolina

(April 3, 2009) -- Downsizing decisions by companies across South Carolina mean opportunities for Allstate Insurance Company's agency growth strategy in the state. Allstate has launched an aggressive recruitment campaign targeting professionals caught in the recent waves of lay offs and pay cuts. The company plans to sign-on at least 20 new agency owners across the Palmetto state, concentrating on inland markets, by the end of 2009.

"We see a significant opportunity in the current economy to attract mid-career, mid-level managers to own and operate their own business and represent Allstate in South Carolina," said Southeast Region Field Vice President Cliff Butler. "We're working with outplacement services and through our own recruiters to find professionals with financial or sales backgrounds."

Allstate says its recruiters are particularly interested in downsized professionals who received a severance package. Part of the reason--candidates need $50,000 in liquid capital to open a new Allstate agency. With some potential candidates hesitating because of the money needed to open an agency, recruiters are focusing on the stability of investing in the Allstate brand.

"These professionals have the resources and the expertise to hit the ground running - starting over as their own boss in control of their own destiny," said South Carolina Territory Sales Leader Jim Uschelbec.

Allstate says its agency expansion plans in South Carolina are part of an overall growth strategy that calls for aggressively growing the provider's auto insurance presence statewide.

Allstate is currently South Carolina’s second largest auto insurer with a 15.9% market share through 2007. The company provides a wide range of products like the conventional home owners, automobile and life insurance to products like boat, motorcycle, renters and umbrella policies.

Interested candidates can apply to become an Allstate agent by logging on to allstate.com or by calling 1-877-711-1006.

BBB Advice on Purchasing Wedding Insurance; Avoid Being Jilted at the Altar by Bankrupt Vendors

With the number of commercial bankruptcies on the rise, some brides and grooms are getting burned by bankrupt vendors. Because of the weak economy, couples might want to consider wedding insurance and Better Business Bureau is offering advice on purchasing coverage for the big day.

The number of businesses filing for bankruptcy was up 47 percent in February over the previous year. While more well-known company filings like Ritz Camera make the headlines, many smaller, independent businesses are also struggling in the current economy. And BBB has certainly had complaints filed about bridal boutiques and venues that suddenly closed up shop leaving engaged couples in a bind. According to Travelers Insurance, more than 40 percent of all Travelers' wedding insurance claims filed during the past two years involved unforeseen problems with vendors and venues, some of which went bankrupt in the worsening economy.

“Considering that the average wedding costs more than $28,000, soon-to-be newlyweds have a significant amount of money on the line and a vendor’s ‘Going out of Business’ sign can be far worse than rain on their wedding day,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Wedding insurance can provide peace of mind for a couple that their money will be recovered if a vendor or venue falls through at the last minute.”

To illustrate the seriousness of the situation, last summer, the BBB serving Charlotte received a flood of complaints from desperate brides about a local bridal shop, La Bella Sposa, which recently filed bankruptcy after deceiving many of its customers. According to complaints filed by brides, the shop took their money, ordered the dresses, but did not pay the designers, so the dresses never arrived. La Bella Sposa was allegedly taking orders for new dresses, but passed off the floor samples as original dresses. One jilted bride paid the shop more than $10,000 for a gown and 13 bridesmaid dresses, but the shop closed its doors taking her money with it two weeks before her wedding. Another bride was devastated to learn four days before her wedding that, while she thought her dress was undergoing final alterations, the bridal shop had allegedly sold the dress to another bride.

Aside from the gown, wedding insurance can provide a variety of coverage for many mishaps that might affect a wedding including vendor no-shows, foul weather, military deployment, and health issues affecting key participants. Most insurance won’t cover cold feet, however.

BBB offers the following advice on purchasing wedding insurance:
• Always research insurance companies first with BBB by reviewing BBB Reliability Reports free of charge online at www.bbb.org
• Shop for wedding insurance before paying deposits on any wedding services to make sure all expenses are covered.
• Comparison shop and pay close attention to the fine print. According to the Insurance Information Institute, insurance will cost between $125 to $400 depending on the amount of coverage. Like any insurance plan, there are limits on claims and deductibles that must be met.
• Avoid purchasing overlapping coverage. Some vendors might already be insured or coverage might be provided by the credit card company.
• Keep good records and all receipts for the insurance company in order to justify any reimbursements.

For more advice on planning a consumer-savvy wedding, go to www.bbb.org.

Spring Cleaning Is the Time to Update Your Home Inventory

Spring cleaning is the perfect opportunity to update your home inventory before hurricane season arrives, according to the South Carolina Insurance News Service. Free software available through the News Service Web site makes this task easy.

“An up-to-date home inventory is a big time saver and brings peace of mind when you purchase coverage or when settling claims,” says Allison Dean Love, executive director of the South Carolina Insurance News Service. A home inventory is a list of all of your personal possessions and their estimated value.

The South Carolina Insurance News Service advises homeowners to:

• Compile a list of serial numbers, model numbers, purchase prices and dates.
• Keep a file of sales receipts or appraisals (especially important for electronics, jewelry, artwork and other expensive items).
• Update your home inventory regularly, especially after a new purchase and store the inventory somewhere safe.

To encourage homeowners and renters to conduct a home inventory, the South Carolina Insurance News Service offers the “Know Your Stuff – Home Inventory Software,” free of charge through the Insurance Information Institute. Consumers can access the software by visiting www.scinsurance.net.
In addition to the software, lists of possessions typically found in certain rooms are available to help jumpstart the process. Consumers can add to their computerized lists with digital photographs and videotapes.

Homeowners can simply note all of their belongings in a notebook and keep a file of major receipts, but using technology such as the computer and/or digital camera or video recorder simplifies the process. Consumers can take digital photographs and store them with this software. Using a digital video camera can be quite effective, since homeowners can narrate while filming.

When making a record of possessions, it is important to note expensive items such as jewelry, furs and collectibles since they may require additional insurance. But, it is also important to make note of more commonplace items such as toys, CDs, clothing and even towels and linens since the cost of replacing these items can really add up if you suffer a major disaster.

“The project can be fun if your family gets involved. Children can help by opening closets and drawers and listing what they see,” says Ms. Love.

It is easy to update and store an electronic home inventory. It takes nothing more than the click of a mouse to add a new possession. As for storing your electronic home inventory, you can create a disc or print out a room-by-room document to be stored in a safe deposit box or other secure location. The electronic record can also be e-mailed to a friend, family member or to yourself. In the event of a disaster, e-mail can be accessed remotely.

Please note that the South Carolina Insurance News Service and I.I.I. provide this electronic home inventory software for you to install on your computer. Neither organization will have access to your personal home inventory files. It is your responsibility to save your home inventory in a secure location.

Former Police Officer Pleads Guilty to Insurance Fraud

Robert Brendon Smith, 29, 428 Chester Street, Coward, South Carolina waived venue and pled guilty yesterday in Marion County to Burning Personal Property to Defraud Insurer. The charge carries a punishment of one to five years in prison. The defendant was indicted in Florence County. Judge Michael Nettles sentenced the defendant to three years suspended to one year probation, 100 hours public service and restitution to State Farm Insurance Company of $275.

The defendant is a former Olanta police officer.

On or about July 8, 2008, Smith reported a 2001 Dodge Dakota truck as stolen from 412 Cause Canal Road in Coward, South Carolina within Florence County. The truck was registered to Smith's mother, but was routinely used by Smith and his wife. The truck was valued at over $8,000. It was later determined that the truck was not stolen, but had purposely been burnt by Mr. Smith and a co-defendant. Mr. Smith later confessed to law enforcement to burning the vehicle with his co-defendant due to the vehicle’s mechanical problems. The claim to State Farm Insurance Company was eventually withdrawn.

The South Carolina Insurance News Service reports a few interesting facts related to insurance fraud:

• Insurance fraud costs nearly $120 billion a year, with healthcare fraud at $85 billion a year and property and casualty insurance fraud at $30 billion a year, according to the Insurance Information Institute.
• Each year consumers spend about $300 per household just in additional insurance premiums, according to the National Insurance Crime Bureau and about $1,000 in total increased insurance premiums, taxes and cost of goods and services according to the Coalition Against Insurance Fraud.
• The South Carolina Insurance Fraud Hotline 1-888-95-FRAUD is available toll-free, 24 hours a day, 7 days a week.
• Insurance fraud can be "hard" or "soft." Hard fraud occurs when someone deliberately fakes an accident, injury, theft, arson or other loss to collect insurance money illegally. Soft fraud occurs when someone inflates a claim or underestimates the number of miles driven on an insurance application.

Report Insurance Fraud to the South Carolina Insurance Fraud Hotline 1-888-95-FRAUD - All reports remain confidential.

Farm Bureau Insurance Contracts With New Agent in Darlington

South Carolina Farm Bureau Mutual Insurance Company (SCFBMIC)
recently contracted with Tracy Woodard to serve as an agent in the Darlington office located at
454 North Governor Williams Hwy.

Woodard graduated from Lexington High School in Lexington, S.C. She earned a Bachelor
of Science in graphic communications with a minor in business administration from Clemson
University.

“I hope to provide our current and future policyholders with the best products and services to
protect themselves and the ones they love,” Woodard said. “I look forward to helping them
understand the different types of coverages, so they can select those that best meet their needs.”

Woodard is an active member of Central Baptist Church and the S.C. Farm Bureau Women’s
Committee in Darlington, S.C., where she lives with her husband Ty.

Avoid Heartache This Valentine's Day by Insuring Your Gifts

With consumers estimated to spend nearly 15 billion dollars on Valentine’s Day gifts this year, it is important that expensive items such as jewelry or electronics are properly insured, according to the South Carolina Insurance News Service.

Standard homeowners and renters insurance policies include coverage for personal items such as jewelry. However, many policies limit the dollar amount of coverage for theft or loss due of valuable personal possessions such as jewelry, furs, and precious stones from $1,000 to $2,000.

"To properly insure jewelry and other expensive items like fine art, musical instruments, and even golf equipment consider purchasing additional coverage through a floater or an endorsement. The cost is quite inexpensive in comparison to the cost of the jewelry," says Allison Dean Love, the South Carolina Insurance News Service executive director. In most cases, you would be covered for "mysterious disappearance" if the ring is lost for any number of reasons. If your ring falls off your finger or is lost, you would be financially protected. With floaters and endorsements, there are no deductibles and frequently you will get the option of having the insurance company replace the item for you, according to Love.

"Despite the recession, love prevails. There is no way to put a dollar value on sentiment," cautions Ms. Love. "It's important to know what you have, what it's worth and to obtain proper insurance coverage."

To make sure your jewelry is adequately protected, the South Carolina Insurance News Service suggests:

Contact your insurance professional immediately
Let your agent or company representative know that you are now in possession of an expensive piece of jewelry or other costly items. Find out how much coverage you have and if additional insurance is needed.

Have the item appraised
Heirlooms and items that were purchased several years ago will need to be appraised for their dollar value. Ask your insurer for recommendations regarding a reputable appraiser. It is important that expensive items are appraised properly. If you purchase a floater or endorsement, you will pay a premium based on this amount. In the event of a claim, you will be compensated for this dollar amount as well.

Keep a copy of the store receipt
You will need to forward a copy of the receipt to your insurer so that the company knows the current retail value of the item. Keep a copy for yourself and include it in your home inventory.

Store valuables in a secure location
Protect your jewelry by storing it in a secure location in your home. If you don’t plan to wear the item regularly or are holding it for a child, consider keeping it in a safe deposit box. You may save money on the cost of insuring it, as some companies offer "in vault" coverage. If you want to wear the jewelry for a special occasion, many insurers will offer the option of purchasing additional coverage for the time it is out of the bank. You would, of course, have to notify your insurer ahead of time.

Take a picture of the item or collection and add the item to your home inventory
Having an up-to-date home inventory of personal possessions helps you purchase the correct amount of insurance and makes the claims process easier if there is a loss. The South Carolina Insurance News Service provides free, downloadable software “Know Your Stuff” on its web page at www.scinsurance.net. You can add a digital photograph of your new gift and save receipts. Computerizing your inventory also makes updating it fast and easy.

Update the value of your jewelry and valuables
Expensive items fluctuate in value over time. Talk to your insurance professional about how to make sure the dollar amount of your floater or endorsement reflects these changes. Prices for floaters and endorsements will vary depending on the type of jewelry, the insurance company you chose, where you live and where the item will be kept.

For more information, link to www.scinsurance.net.

Holiday Party Liabilities

As millions of Americans host and attend holiday parties across the street or across the country, many are unaware of the risks they may be taking or of their own responsibilities to ensure their guests don't hit the road drunk, according to a new national survey on homeowner's insurance issues by Trusted Choice® and the Independent Insurance Agents & Brokers of America (the Big "I").

For the survey, homeowners were asked if they believed they were legally liable if a guest caused an alcohol-related traffic accident after leaving a holiday party at the respondent's home. Additionally, they were questioned about the liability responsibility of a guest destroying a house with a careless act such as leaving a candle unattended or smoking indoors. Respondents were also asked if they thought they would be legally liable if a guest was injured on the sidewalk in front of their property or suffered food-poisoning from catered food while attending a holiday party at their home. Alarming percentages of homeowners either thought they could not be held liable in these situations or admitted they didn't know.

Do Your Homework: When hosting a holiday party, individuals should look to the liability portion of their homeowners or renters insurance policy to protect them if they are sued and found liable for an accident involving a guest who drank at their home. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident occur.

Consider an Umbrella Policy: While holiday partygoers and hosts alike should act responsibly and know their limits, consumers need to acknowledge that most risks cannot be entirely eliminated. But planning ahead and learning about what's involved in hosting a reception is the best defense. Purchasing a personal "umbrella" liability policy - providing $1 million or more in additional coverage over the limit of a standard homeowners or renters policy - may be a prudent move for the frequent party host.

Consider the following tips to prevent holiday party accidents and protect yourself:
* Limit your guest list to those you know.
* Host your party at a restaurant or bar that has a liquor license, rather in a home or office.
* Provide filling food for guests and alternative non-alcoholic beverages.
* Schedule entertainment or activities that do not involve alcohol. If the party centers around drinking, guests will likely drink more.
* Arrange transportation or overnight accommodations for those who cannot or should not drive home.
* Stop serving alcohol at least one hour before the party is scheduled to end.
* Do not serve guests who are visibly intoxicated.
* Consider hiring an off-duty police officer to discretely monitor guests' sobriety or handle any alcohol-related problems as guests leave.
* Stay alert, always remembering your responsibilities as a host.
* Review your insurance policy with your Trusted Choice® agent before the event to ensure that you have the proper liability coverage.

From Independent Insurance Agents and Brokers of America, Inc.

Saving Money on Insurance

Some tips from Independent Insurance Agents and Brokers of America, Inc.

Credit life insurance: Avoid credit life insurance (for new furniture or credit card debt, for example) under most circumstances. These policies, offered by credit card companies and other lenders, extend for the term of the loan and decrease in value over its life. They are designed to protect a third party if for some reason the consumer dies before the loan is paid off. However, they provide no protection to beneficiaries—only to the company that offered the credit or loan.

Deductibles are too low: Owners of expensive homes need to consider whether a low deductible makes sense. If someone steals the TV, it isn’t going to break the bank. Those same consumers need lots of insurance for a total catastrophe, though, or if they get sued. Therefore, they may want to take a $1,000 deductible and use the savings, which can be 10 to 20%, and buy a reasonably priced "umbrella liability" policy to give them $1 million or $2 million of coverage in case they’re sued.

Specific computer insurance policies: Though this coverage may seem like a good idea since so many people now have computers at home, a standard homeowners policy will cover most basic personal computer equipment. Here’s how it works: If you have a home with the structure insured for $100,000, you typically have $50,000 of personal property coverage, including computer equipment not used for business. If used for business, the home insurance policy typically provides $1,500 or $2,500 of coverage for computers. Only people with home-based businesses, laptops used for business outside the home or elaborate high-tech equipment need to consider extra coverage but it’s usually cheaper to buy an endorsement to the home or home-business policy rather than a separate computer policy. (The same concept holds true for cancer insurance or trip-specific life insurance, and other specific policies when in fact broader coverage that is cheaper in the long run might be needed.)

Insurance Fraud Awareness Week

Governor Mark Sanford has proclaimed November 10-14 as Insurance Fraud Awareness Week in South Carolina. Insurance fraud is a felony in South Carolina and can result in jail time. According to the National Insurance Crime Bureau studies indicate 10 percent or more of property/casualty insurance claims are fraudulent.

While there are organized fraud rings throughout South Carolina, other people you wouldn't suspect, such as a next-door neighbor, co-worker or close acquaintance, are also the causes of insurance fraud and increased insurance premiums.

"We need the general public to fight fraud in our state and not tolerate it," said Brandolyn Pinkston, Administrator of the South Carolina Department of Consumer Affairs. "The message is a simple yet powerful one: We all pay for insurance fraud - it's time to fight back."

Officials encourage consumers to use the South Carolina Insurance Fraud Hotline to report cases to the Attorney General's Insurance Fraud Division. The South Carolina Insurance Fraud Hotline (1-888-95-FRAUD) is available toll-free, 24 hours a day, seven days a week.

What is Insurance Fraud?

• Misrepresentation of the number of miles on an auto insurance application.
  
• Failure to report an accurate medical history when applying for health insurance.
  
• Fake or exaggerated injury claims to avoid work and draw workers’ compensation pay outs.
  
• Falsification or overstatement of injuries in an auto accident to obtain a large settlement or damages award.
  
• Staged auto accidents that result in claims for non-existent or exaggerated injuries.
  
• Fabrication of relationships to obtain life insurance benefits.
  
• Exaggeration of the amount and value of items stolen from a home, business or automobile.

S.C. Auto Insurance Rates

The average auto insurance expenditure in South Carolina remains below the national average according to a recent study released by the National Association of Insurance Commissioners. South Carolina drivers on average spend $756.11 per year on auto insurance which is $61 less than the national average of $817.11 according to the latest study from 2006 just released. The average expenditure estimates what consumers in South Carolina spent, on average, for auto insurance in 2006.

The South Carolina General Assembly passed legislation requiring an increase in the minimum amounts of liability insurance coverage which took effect January 1, 2007. Act 395 requires drivers to carry liability coverage in amounts of no less than $25,000 of bodily injury per person, $50,000 of bodily injury per accident and $25,000 of property damage coverage (usually written as 25/50/25).

Neighboring States

Georgia $788.08

Florida $1,069.38

North Carolina $596.39

Virginia $684.52

Tips Before the Storm

The South Carolina Insurance Service offers the following tips for residents before the storm:

Locate insurance policies, name and telephone number of insurance agent and take this information with you if you evacuate.
Update or take a home inventory. This can be as simple as making a list of personal belongings, taking pictures or using a video camera to document your property. The South Carolina Insurance News Service has a free, downloadable home inventory software package available on its website at www.scinsnews.com
Protect your family from harm by evacuating if necessary.
Protect property before the storm by covering windows and glass doors with plywood. Secure outdoor furniture. Secure any automobiles.
If damage occurs, protect property from additional damage by covering the roof and windows as soon as possible.
Survey damages before contacting insurance agent or company.