Coastal Property at Mercy of Wind Pools
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!" SPECIAL REPORT: INSIDE $160 in coupons 110 jobs available 388 homes for sale ATHLETES STORM OF MONEY OF THE YEAR. SPORTS, C1 THE SOUTH’S OLDEST DAILY NEWSPAPER . FOUNDED 1803 SUNDAY, June 24, 2012 POSTANDCOURIER.COM Charleston, North Charleston, S.C. $2.00 SPECIAL REPORT: STORM OF MONEY SUBURBAN Coastal property SUPREMACIST? at mercy Summerville resident Kyle Rogers Accused drug smuggler still awaiting a rising star in radical right movement of wind Coastal trial after nearly 4 years Local & State, B1 pools vestors, Start With aRoth Slaves who BY TONY BARTELME were taken [email protected] to the United Every year, about 47,000 property owners on the coast of South Caro- lina pay millions of dollars to a special States hit the insurance organization that funnels nearly all of this money to a group of slave lottery. super-wealthy companies in Bermu- da, Switzerland and other far-$ung — Kyle Rogers locales. Welcome to the Byzantine world of the “wind pools,” where rates are set Slade: Don’t delay high on purpose and insurers spend millions to insure themselves. opening a Roth IRA Most coastal states have wind pools Money, F1 — government-chartered nonprof- its that insure high-risk homes and WSJ: Young investors buildings no private insurance com- pany wants to cover. should start with Roth And some have become massive en- Wall Street Journal, F3 terprises. Florida’s wind pool, Citizens Property Insurance Corp., insures 1.4 million properties and collects $3 bil- lion in premiums a year. property South Carolina’s smaller iteration is the S.C. Wind and Hail Association, which every year collects nearly $100 million in premiums from 46,000 homeowners and 1,000 commercial property owners in two zones near the water. In Charleston County alone, it in- sures about 10,000 properties valued at $4 billion. On average, owners shell out about $2,040 for coverage against wind and hail damage. !at doesn’t include coverage for "res and $ood- ing, which requires separate polices. Blacks in the U.S. “are the most privileged “I’m paying almost $5,000 for all my insurance now,” said George L. Wil- members of their race.” — Rogers liams, a retired veteran from the Isle of Palms whose home is in one of the wind pool zones. “Really and truly, I Arizona the !nal would like someone to explain what’s obstacle in USC’s bid going on with the money.” Some consumer advocates say wind for third straight title pools reflect a troubling trend: Pri- ? Sports, C1 FILE/TYRONE WALKER/STAFF vate insurance companies are shi%ing In 2007, Kyle Rogers strongly voiced his support of a proposed anti-illegal-immigration resolu- high-risk properties to these groups tion in the S.C. General Assembly during a public debate in North Charleston. Rogers was recently and keeping “the safest risks for them- Follow the Gamecocks named one of the radical right’s “30 to watch” by the Southern Poverty Law Center (below). selves,” a report by the Consumer Fed- For complete coverage of eration of America said this year. South Carolina’s bid for a third BY GLENN SMITH [email protected] “It is akin to solving the health in- at mercy straight College World Series surance crisis by requiring states to championship and Gamecocks yle Rogers has been described as a white suprem- cover sick or terminally ill patients, beat writer Darryl Slater’s acist and one of the rising leaders of America’s while the private sector writes cover- reports from Omaha, go to age for young and healthy consumers,” postandcourier.com. radical right, but most of his neighbors in Sum- the report said. Kmerville probably don’t even know he’s there. Others say wind pools have helped !e 35-year-old computer engineer has kept a relatively prevent real-estate meltdowns in Partly cloudy. hurricane-prone areas by giving High 91. Low 72. low pro"le in local circles since moving from Ohio to the Complete 5-day Lowcountry in 2004. Please see POOLS, Page A6 forecast, B8 But he’s been busy building a name for himself through ONLINE: For interactive racially provocative writings and as a key player in the maps and a searchable CONTACT US Council of Conservative Citizens, a national group that database of rates in Classi!ed ........................................722-6500 your county, or to read Home delivery ..............853-POST (7678) opposes “all e#orts to mix the races of mankind.” previous stories in the series, go to General o"ces .............................577-7111 Newsroom .....................................937-5582 Please see ROGERS, Page A5 postandcourier.com/storm-of- money. INDEX Arts & Travel ........E1 Home & Garden .. D1 Books ..................E4 Local News ......... B1 Q&A: A look at the possible health care outcomes Celebrations ....... G4 Money .................F1 Classi!eds ..........H1 Movies ................E7 BY MARK SHERMAN and Inside keep looking for answers, whether or A: !at would settle the legal argu- Cooking .............. D3 Obituaries .......... B4 RICARDO ALONSO&ZALDIVAR not the A#ordable Care Act passes the ment, but not the political battle. Dear Abby .......... G5 Pets .................... D5 Associated Press COMMENTARY: Obamacare purge test of constitutionality. !e clear winners if the law is upheld won’t cure our Nanny State-itis. A15 Crossword ...........E5 Sports .................C1 With a decision by the court expect- and allowed to take full e#ect would be Editorials .......... A14 Television ............E8 WASHINGTON — Some people ed this week, here is a look at potential uninsured people in the United States, of wind Faith & Values..... G1 Wall St. Journal ...F2 already are anticipating the Supreme CAMPAIGN ’12: How presidential outcomes: estimated at more than 50 million. Court’s ruling on President Barack contenders will react to ruling. A4 Starting in 2014, most could get cov- Setting the record straight ....................2A Obama’s health care law as the “deci- Q: What if the Supreme Court up- erage through a mix of private insur- sion of the century.” But the justices !e problems of high medical costs, holds the law and !nds Congress was ance and Medicaid, a safety-net pro- N are unlikely to have the last word on widespread waste, and tens of millions within its authority to require most gram. Republican-led states that have a rising star in radical right movement S America’s tangled e#orts to address of people without insurance will re- people to have health insurance or health care woes. quire Congress and the president to pay a penalty? Please see Q&A, Page A7 ONLINE: For interactive pools maps and a searchable database of rates in BY TONY BARTELME your county, or to read [email protected] previous stories in the series, go to postandcourier.com/storm-of- Every year, about 47,000 property money. owners on the coast of South Caro- lina pay millions of dollars to a special insurance organization that funnels : A look at the possiblenearly all of this health money to a group ofcare outcomes super-wealthy companies in Bermu- da, Switzerland and other far-!ung locales. Welcome to the Byzantine world of the “wind pools,” where rates are set high on purpose and insurers spend millions to insure themselves. Most coastal states have wind pools — government-chartered nonprof- its that insure high-risk homes and buildings no private insurance com- pany wants to cover. And some have become massive en- terprises. Florida’s wind pool, Citizens Property Insurance Corp., insures 1.4 million properties and collects $3 bil- lion in premiums a year. South Carolina’s smaller iteration is the S.C. Wind and Hail Association, which every year collects nearly $100 million in premiums from 46,000 homeowners and 1,000 commercial property owners in two zones near the water. In Charleston County alone, it in- sures about 10,000 properties valued at $4 billion. On average, owners shell out about $2,040 for coverage against wind and hail damage. "at doesn’t include coverage for #res and !ood- ing, which requires separate polices. “I’m paying almost $5,000 for all my insurance now,” said George L. Wil- liams, a retired veteran from the Isle of Palms whose home is in one of the wind pool zones. “Really and truly, I would like someone to explain what’s going on with the money.” Some consumer advocates say wind pools reflect a troubling trend: Pri- vate insurance companies are shi$ing high-risk properties to these groups and keeping “the safest risks for them- selves,” a report by the Consumer Fed- eration of America said this year. “It is akin to solving the health in- surance crisis by requiring states to cover sick or terminally ill patients, while the private sector writes cover- age for young and healthy consumers,” the report said. Others say wind pools have helped prevent real-estate meltdowns in hurricane-prone areas by giving !" Coastal property at mercy of wind pools POOLS, from A1 made a direct hit on Charleston or Myrtle Beach, the group would never homeowners another option to buy have enough to cover losses, Harrison wind hazard insurance, even though said. For this reason, the wind pool it’s expensive. must go outside South Carolina to What is clear is that as private com- !nd ways to pay for a future catas- panies such as Allstate and State Farm trophe. pull out of areas near the ocean, wind And it does this by taking out insur- pools have emerged as significant ance policies of its own. players in coastal states such as South Carolina, even though, as Rick Amick, Masters of disaster chief !nancial o"cer of the S.C. Wind Insurance is about spreading risk, and Hail Association, said, “We like to and it has a long tradition.