Public hearing will address homeowners insurance

FINANCE

The S.C. Department of Insurance will hold a public hearing next week in Mount Pleasant when you can quiz Director of Insurance Scott Richardson on the state of the local homeowners insurance market.

The meeting is from 5:30 to 7 p.m. Thursday at the Town of Mount Pleasant Municipal Complex, 100 Ann Edwards Lane. That's off Houston Northcutt Boulevard, which runs between Coleman and Johnnie Dodds boulevards.

The meeting is similar to one Richardson hosted last year at The Citadel. At that time, many residents were concerned about availability after some of the state's largest insurers dropped thousands of longtime customers up and down the coast.

This time around, after a long-sought expansion of the wind pool — the state's last-stop source of wind and hail coverage — and the addition of a dozen new providers to the state, complaints from homeowners likely will center more on cost.

I can tell you from personal experience, mentioning no names, that the cost of my homeowners policy has increased 29 percent for the coming year that starts in June. My humble 1,250-square-foot house now costs more than $3,000 to insure.

I know from calls I've received that plenty of you have seen steeper increases. I don't know what this says about the world we live in, but I'm glad just to have the policy.

For questions concerning the meeting, contact the Insurance Department at 803-737-6207.

Living the dream

Since 2002, June has been designated National Homeownership Month.

As part of an awareness campaign, the American Bankers Association offers tips on what buyers should consider during these uncertain economic times and shaky real estate market, such as your ability to qualify for a loan — or whether you can afford it.

Here's some advice from the ABA:

-- Review your finances. Calculate all your monthly expenses in addition to your potential mortgage payment, including insurance, taxes and other obligations such as car payments, credit-card debt and living expenses. You should anticipate and save for home maintenance costs as well.

-- Check your credit score. Most lenders rely on the FICO score created by Fair Isaac Corp. to decide if you qualify for a loan. A low score will result in a higher interest rate on your loan. If your score is too low, you may not be approved for a loan at all. Help improve your score by paying bills on time and only opening lines of credit you need.

-- Research lenders. Get quotes from more than one to compare interest rates and fees. Don't sign anything until you understand all the terms and know exactly what you'll be paying in the future.