Its statutory name is the North Carolina Insurance Underwriting Association, and it is an association which, as agents for the member companies, functions like an insurance company, making basic and broad property insurance available to people who are not able to buy it through the standard insurance markets.

The Beach Plan was created in 1969 to cover only those barrier islands adjacent to the Atlantic Ocean.

In 1998, the Beach Plan was expanded by the NC General Assembly to include the eighteen (18) coastal counties (called the Coastal Area) for Windstorm and Hail Insurance Only coverage. The plan was authorized to begin offering Homeowners Insurance Policies for principle residences effective July 1, 2003 for all 18 coastal counties.

Who operates the BEACH Plan?

A fourteen (14) member Board of Directors (including seven [7] representatives from the insurance industry, four [4] licensed agents and three [3] members of the general public) act as the Beach Plan policymaking body.  The Plan is managed by a staff of professional insurance people, independent of any single insurance company. All property and casualty insurance companies that do business in North Carolina participate in funding the Plan and sharing any losses and profits.  The Beach Plan is not a facility of the North Carolina State Government, but its operation is subject to review by the North Carolina Commissioner of Insurance.
 

Almost anyone can. However, most people wanting to buy insurance on their properties can sometimes get broader coverage – often at a better price – in the regular competitive market.  As a matter of fact, it is recommended that an applicant try to buy insurance in the standard market before coming to the Plan for coverage. If they apply and their property meets basic fire, loss prevention and reasonable underwriting standards, the Plan will offer coverage.

Does this mean the BEACH Plan will insure any property?

There are reasonable standards, which must be met. These are basic things, which most people would have done already to make their properties safe, and to eliminate substandard physical conditions. An inspection of the property is required for every policy issued. This inspection is generally done by you or your producer.  A completed inspection form, including a photograph, is submitted along with the basic application. The Beach Plan requires coverage to be within reasonable relationship to the actual cash value of the building.

Any property built after January 1, 1970 must be constructed in compliance with North Carolina Building Codes.  There are situations, from time to time, when a certificate of compliance is required, but usually the Plan receives a blanket certification from the municipality. Coverage in the Beach Plan requires receipt of a properly completed application that meets the Plans’ underwriting standards and the full estimated annual premium.

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