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Insurer writes coastal policies PUREly for $1 million and up
By Scott Miller
Staff Writer
Coastal homeowners searching for wind and hail insurance coverage may have found it, if they meet the guidelines to join the exclusive club.
A Florida-based insurer plans to begin writing wind and hail coverage within the state’s wind pool, a rare policy in an industry that tends to be fleeing the coast.
PURE High Net Worth Insurance, or Privilege Underwriters Reciprocal Exchange, received its license March 4, according to the S.C. Department of Insurance. It will begin writing policies as early as May, said Ross Buchmueller, company founder, president and CEO.
The company will only insure homes worth at least $1 million. PURE employs strict construction criteria based on eligibility requirements in Florida:
• Homes must have at least 3,000 square feet of living space.
• If the property is in a coastal county, all the external windows and doors must be protected with shutters.
• The roof structure and covering must meet 2001 building codes.
• If the home was built before 2001, the walls must be constructed of masonry or concrete.
Member-owned
PURE, which also offers private fleet auto insurance, personal liability insurance and art and jewelry insurance, is set up as a nonprofit. It’s a member-owned company, so policyholders will pay an annual management fee or surplus. In Florida, PURE customers must pay an annual surplus contribution equal to 10% of their premium.
In Charleston County, homeowners pay anywhere from around $1,500 annually to more than $4,600, according to figures from the S.C. Department of Insurance.
But Buchmueller said homeowners are likely paying too much and that PURE’s premiums should be lower.
In the long run, PURE could produce copycat companies that will effectively lower rates even more via competition, said Buchmueller, who was named by New York Crain’s as one of the “40 under 40” rising stars in 2004 for his work as president of AIG Private Client Group.
“We’ve seen that in Florida,” he said.
To get started, Buchmueller hired two South Carolina businessmen to manage the local market. Bobby Collins, senior vice president and general manager for South Carolina, joined PURE from Wachovia Insurance in Charleston. He is a member of the board of directors for the Charleston Metro Chamber of Commerce. Dennis Kirwin, senior vice president for South Carolina, also joined the company from Wachovia.
PURE launched in Florida in 2007 and now has more than 3,000 policies there and a $50 million surplus. In South Carolina, Buchmueller expects to cap the company’s exposure to around 10,000 homes.
The S.C. Wind and Hail Underwriting Association, commonly referred to as the wind pool, insures nearly 40,000 homes, an estimated 25% of the homes within the association’s boundary, said David Leadbitter, wind pool underwriting manager.
Scott Miller is a staff writer for the Business Journal. E-mail him smiller@scbiznews.com.
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