insurance decision

[Deputy Van Halen]

My extended family is renting a large beach house in Hilton Head, SC from August 18 to August 25. The rental price is over $6,000.

We were offered "insurance" for about $380 which would refund our money in case a hurricane evacuation was necessary. I'm not sure what else the insurance might cover.

My question is: what would you do in this situation? Buy the insurance or risk losing your money in the (rare) event of an imperative evacuation in the region? Obviously the answer depends upon the financial means and risk tolerance of the individual(s) involved. I just wanted to see what the prevailing sentiment would be.

We have until one month before to decide on the insurance. Would there be meterological data that develops between now and then that would allow a better prediction of the odds of a hurricane in that region this year?

Can South Carolina call for a mandatory evacuation? If so, would a business be legally able to keep the money they received for a service they were not allowed to provide?

I'm guessing that the last major evacuation in that area was for Floyd in '99? And the last event where evacuation was genuinely necessary was Hugo?

[secretforecaster]

I cannot answer your other questions, but IMHO I would weigh the rental cost & the cost of your "inconvenience" should something happen in the tropics vs. the cost of the insurance.
$6,000 for a rental and about 6.5% ($380) for insurance.

Personally I say it's worth it given the amount you guys are spending on the rental. It's probably unlikely that you will have to use it, but I say it's worth your peace of mind.

[wxman57]

You seem to have it figured out well. It comes down to risk tolerance. Climatologically, that area is not at much at risk in August vs. September/October. Early-season hurricanes are generally not turning up the east U.S. Coast. So you have that going for you. I checked back 150 years and only see 4-5 occasions that might have prompted evacuations at Hilton Head in August. So it would be a rare event for early season.

I would think that the insurance would reimburse you for the money you'd be out if you had to evacuate and could not occupy the rental. Once you rent the house, you take your chances as to whether the weather (hurricanes) would prevent you from staying in the house.

As for the mandatory evacuation, they cannot physically MAKE you leave. But I'd strongly advise against staying in such a dangerous location should any hurricane threaten.