September 9, 2025
South Carolina home insurance averages $2,708 a year, above the U.S. average. Hurricanes, flooding, and coastal risks drive rising premiums.
South Carolina's homeowners insurance market continues to face significant pressure in 2025, with average premiums reaching $2,708 annually for policies with $250K in dwelling coverage, placing the state above the national average. The Palmetto State's unique coastal geography and increasing frequency of severe weather events have created a challenging environment for both insurers and homeowners.
The South Carolina insurance landscape reflects the state's vulnerability to natural disasters. South Carolina's average homeowners insurance premium is $2,708 for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage, which is more than the $2,423 national average. This places South Carolina as the 15th most expensive state in the country for home insurance, at 3% above the national average.
Premium variations across the state are substantial, with premiums ranging from $1,968 to $4,772 depending on location. Coastal areas bear the heaviest burden, with Charleston's average at $3,270 and Myrtle Beach residents potentially seeing rates as high as $4,772, while inland areas like Columbia may pay around $1,968 annually.
The state has experienced notable rate increases, with hurricane damage fueling increases and projecting home insurance rates in South Carolina will increase another 11% by the end of the year. According to industry reports, South Carolinians already pay 29% more than the average U.S. homeowner.
Recent data shows concerning trends in the market. South Carolina homeowners have seen relatively mild increases in their home insurance rates in the 2020s, with the biggest increase being 9.2% in 2024, though this varies significantly by carrier, with Travelers experiencing a 38.7% increase over six years while Allstate saw just a 6.5% increase.
South Carolina's 200-mile coastline makes it particularly susceptible to hurricane damage. The state is among 19 states that have hurricane or named storm deductibles, with these deductibles typically ranging from 1-5% of Coverage A. Wind and hail deductibles are percentage-based, meaning if a house insured for $300,000 has a 3% wind and hail deductible, the homeowner's out-of-pocket deductible would be $9,000.
Standard homeowners policies exclude flood damage, making separate flood insurance critical. Flood insurance is not included in standard HO-3 policies and is mandatory in FEMA flood zones. Homeowners can obtain coverage through the National Flood Insurance Program (NFIP) or private insurers.
Despite being less commonly discussed, South Carolina lies on a minor fault line, and earthquake coverage should be offered in areas like Columbia and the Midlands.
Given the state's risk profile, several endorsements are particularly valuable:
Credit scores significantly impact premiums in South Carolina. Homeowners with poor credit pay an average of $13,805 annually, which exceeds the state average by $11,097, while those with excellent credit pay $1,822 annually.
Construction materials and roof types also play crucial roles. Homes with tile roofs may see lower premiums due to the material's durability, while shake-treated roofs could lead to higher insurance costs. Additionally, insuring a newly constructed home costs $1,534 annually, $1,174 lower than the $2,708 average for existing homes.
Coastal homeowners face unique challenges beyond higher premiums. Vacation and seasonal homes are common along the coast and require verification of occupancy type and carrier eligibility. Many properties feature stilted/elevated construction that may require special underwriting. However, hurricane clips and metal roofs can qualify for wind mitigation discounts with select carriers.
The state operates the South Carolina Wind and Hail Underwriting Association (SCWHUA) as an insurer of last resort for coastal properties. The SC Wind and Hail Association pool was designed as a compromise between the State of South Carolina and many insurance carriers whose writings had become too saturated along the coast.
Several insurers offer competitive rates and coverage in South Carolina:
Note: All rate information is based on sample quotes and averages. Actual premiums vary based on individual circumstances, coverage selections, and underwriting factors.
Understanding how South Carolina compares to neighboring states provides valuable context for homeowners:
Premium amounts based on $250K-$300K dwelling coverage with standard liability limits. Rates are averages and individual premiums may vary.
For insurance servicers looking to improve customer experience while potentially reducing operational costs, partnering with specialized insurance brokers may provide value. A warm transfer to Covered as an insurance partner can help improve the customer experience by connecting customers with additional coverage options and insurance guidance. This approach may help shift customer service toward becoming a more value-added function by addressing key insurance concerns, though results will vary based on implementation and customer needs.
Disclosure: Covered may receive compensation from partner insurers if a customer purchases a policy through their platform.
The South Carolina homeowners insurance market faces continued challenges from increasing storm frequency and severity. Experts project rates will continue rising, with projections of another 11% increase by year-end.
Homeowners should consider several strategies:
South Carolina's homeowners insurance market reflects the state's unique geographic challenges and growing climate risks. While premiums continue to rise, understanding the market dynamics, available coverage options, and risk mitigation strategies can help homeowners navigate this complex landscape. The key lies in working with knowledgeable insurance professionals who understand both the state's specific risks and the evolving insurance marketplace.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
