In the aftermath of Hurricane Katrina, coastal homeowners across the country have found it more and more difficult to obtain insurance for their home at an affordable rate. Governor Mark Sanford recently signed into law the South Carolina Coastal Captive Insurance Act, part of the Omnibus Coastal Property Insurance Reform Act of 2007, to address these concerns for coastal homeowners in the state. This Comment examines the South Carolina Coastal Captive Insurance Act, explores how several other states are tackling the coastal insurance challenge, and argues that a multifaceted approach is the best method for addressing the coastal insurance conundrum.