All homeowners want want to know one thing: Why Home Insurance is Expensive in South Carolina.
Home insurance rates in South Carolina are climbing, and homeowners are feeling the pinch. If you’re wondering why your premium keeps going up, you’re not alone. Several factors contribute to the rising costs, including the state’s vulnerability to extreme weather, increasing rebuilding costs, and changes in the insurance market. Let’s break it down.
South Carolinians Pay More for Home Insurance
According to recent reports, South Carolinians pay 24% more than the U.S. average for home insurance. In October 2024, the average annual premium reached $3,079 (MoneyGeek). This is significantly higher than the national average of $2,423. Some reports even project that by the end of 2024, rates could rise another 11%, bringing the average to $3,410 (NAR Realtor).
Why Are Home Insurance Rates Rising?
There are several reasons why South Carolina homeowners are paying more for insurance:
1. More Frequent Billion-Dollar Weather Events
Severe weather is one of the biggest culprits behind rising insurance costs. In the 1990s and 2000s, South Carolina averaged just 1.5 billion-dollar weather events per year. However, in the last five years, that number has jumped to five billion-dollar events annually (NOAA). With hurricanes, floods, and extreme storms hitting more frequently, insurance companies are facing more claims—and passing those costs onto homeowners.
2. Storm Surge Risk
South Carolina has the third-highest percentage of housing units at risk for storm surge flooding (21%), according to Guidewire (an insurance software platform). Coastal areas like Charleston, Myrtle Beach, and Hilton Head are especially vulnerable. This means higher risks for insurers, leading to pricier policies.
3. Building Costs Are Skyrocketing
When natural disasters strike, homes need to be repaired or rebuilt. Rising labor and material costs have made this more expensive than ever. Higher rebuilding costs lead to bigger insurance payouts, which ultimately push premiums higher.
4. Reinsurance Costs Have Increased
Insurance companies don’t just rely on homeowner premiums—they also buy reinsurance (insurance for insurers) to help cover large claims. Due to South Carolina’s high risk of natural disasters, reinsurance costs have gone up, forcing insurers to charge more.
5. Litigation and Claims Impact Pricing
South Carolina has seen a rise in insurance-related lawsuits, which can drive up costs for insurers. When insurers have to pay out more in legal fees and settlements, they increase premiums to balance the books.
Could Strong Building Codes Help Stabilize the Market?
One silver lining is that South Carolina has strong, uniformly enforced building codes, which help mitigate damage from natural disasters. This is in contrast to North Carolina, where building codes aren’t as strictly enforced. After the next big storm, these regulations could help reduce damages and claims, potentially stabilizing the insurance market (Southern Environmental Law Center).
How to Lower Your Home Insurance Costs
If you’re looking for ways to cut costs, consider these tips:
- Shop around – Compare rates from different providers.
- Bundle policies – Combine home and auto insurance for discounts.
- Upgrade your home’s resilience – Install storm shutters, impact-resistant roofing, and elevate your home if possible.
- Increase your deductible – A higher deductible can lower your premium.
- Ask about discounts – Some insurers offer savings for security systems or home improvements.
Know you know a little more about why home insurance is expensive in South Carolina. Rising home insurance costs are driven by extreme weather, storm surge risks, expensive rebuilding costs, and market shifts. While strong building codes could help stabilize the situation, homeowners should be proactive in finding ways to manage their insurance expenses. As the market continues to shift, keeping an eye on trends and exploring cost-saving strategies can help you get the best deal on your policy.
Stay informed, compare your options, and take steps to protect your home without overpaying for coverage.
