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Who should pay and how much for property insurance before the next monster storm hits the state?

The General Assembly is struggling with that scenario and hasn't yet come up with an answer. But it is likely to seek out the safe high ground. And that raises the specter of inland residents footing at least a portion of the bill if a dangerous hurricane makes coastal landfall.

A bill sponsored by Lexington Democrat Hugh Holliman would allow insurers to assess a surcharge of up to 10 percent to cover a payout shortfall. Before that could happen, insurance companies writing homeowners coverage in the state first would have to shell out $1 billion to the state-run Beach Plan.

Fair? Depends on whom you ask.

Inlanders say coastal property owners, who have chosen to live in a storm-vulnerable area, should expect to shoulder the cost of the inevitable damage without their help.

Coastal interests, in turn, cite the capriciousness of Atlantic storms, noting that, depending on the track, even western North Carolina can wind up in the path of a destructive hurricane.

For example, Fran and Hugo inflicted major property losses west of the coast. One industry study says 70 percent of storm-generated wind damage claims are from areas other than the 20 coastal counties.

Even so, those most likely to be in harm's way should pay higher rates to insure their property. Usually, that means coastal residents.

Meanwhile, lurking in the background is the possible lack of any coverage. State Insurance Commissioner Wayne Goodwin warns that insurers, worried about liability, could stop writing policies here altogether as they have done in other Southeastern states. Some already have left.

To head that off, lawmaker should come up with realistic revisions to the under-funded Beach Plan.

While both the industry and Goodwin support Holliman's bill, issues remain unresolved. Coastal interests don't like limiting maximum coverage of a Beach Plan homeowner's policy to $750,000. And, under current law, even insurers that don't write coastal homeowners' policies would be assessed for damages not covered by the Beach Plan.

However, exemptions could result in firms cherry-picking. Insurers might only offer coverage in perceived safe areas or leave the homeowners market altogether while continuing to write lucrative unrelated policies.

There's general agreement that the surcharge is a last resort. Yet, while stretching the limits of fairness, it may be the only way to address a thorny problem.

Sooner or later, the big one is coming, and we must be prepared.