In the last two decades, Atlantic Ocean hurricanes have been twice as likely to intensify quickly into major storms compared to a comparable period in the late 20th century, according to research published in the journal Scientific Reports.
Recent named storms in South Carolina — Matthew in 2016, Florence in 2017, Dorian in 2019, Ian in 2022, and perhaps most destructive of all, Helene in 2024 — serve as important reminders to prepare well before hurricane season begins on June 1. One of the easiest and most effective preparation steps for cities and towns is ensuring that their insured property schedules are complete and current.
Keeping schedules updated helps prevent several costly problems. Out‑of‑date information may lead to paying premiums on assets that the city no longer owns. It could also overlook newly acquired buildings, equipment or vehicles that still need to be insured. When the city reports inaccurate values to insurers, it affects premiums and the accuracy of its overall risk profile.
Understanding coverage
When officials review their coverage, it’s important to take time to understand whether their buildings and equipment are insured at replacement cost or actual cash value. Actual cash value deducts for depreciation of the asset over time, which can significantly reduce the payout received after a loss, and make replacing the asset more difficult.
It’s also important to determine whether the city’s policy includes coinsurance requirements that mandate coverage at a certain percentage of an asset’s value. If the schedule is outdated, the city may unintentionally fall below this threshold and face penalties after a claim.
Flood zones
Another critical consideration is whether any of city-owned buildings fall within FEMA-designated high‑hazard flood zones — zones beginning with A or V — as designated by the Federal Emergency Management Agency. The National Flood Insurance Program limits coverage to $500,000 for buildings and $500,000 for contents, so knowing the flood zone of properties — and what coverage the city has in place — is essential.
FEMA’s Flood Map Service Center allows users to confirm the flood zone of properties. Buildings in high‑risk areas that lack NFIP coverage may leave the city responsible for substantial uninsured losses.
Vacant buildings
Vacant buildings deserve special attention as well. These structures are more susceptible to vandalism, fire and water damage. Because problems often go unnoticed, many insurers limit coverage or require additional protections. Ensuring these buildings are properly listed and classified helps avoid unpleasant surprises.
Ultimately, maintaining accurate asset schedules strengthens insurance protection, reduces administrative workload and supports a smoother claims experience when it matters most. Reviewing and updating schedules ahead of hurricane season is a smart, proactive step that helps safeguard a municipality’s property and financial stability.
For more information on asset classification, contact Robert Collins, underwriting manager with the Municipal Association of SC Risk Management Services, at rcollins@masc.sc.