Is homeowners insurance required in South Carolina? 

I recently bought my first home in South Carolina. I know that protecting my home with homeowners insurance is a good idea, but am I required to purchase it? What are the risks of not having homeowners insurance? How can I find affordable coverage?

Answer:

While car insurance is required by law in most states, including South Carolina, homeowners insurance is not.

But it’s likely that your mortgage lender will require you to have homeowners insurance, and will require proof that you have it. 

Why? Well, your lender is technically part owner of your home. If your home is damaged in some way by something like a fire or a storm, home insurance helps you pay for making repairs or rebuilding. 

If your home was destroyed and you had no way to pay to rebuild it, would you continue to make your mortgage payments? If the home is uninhabitable, the mortgage would have little to no value, and foreclosure isn’t a great option for the mortgage company to recoup its losses either. So your home insurance protects your mortgage holder from financial losses after a disaster as much as it protects you.

Some lenders may require the minimum amounts of coverage you need and the type of policy you purchase, in addition to some other stipulations. A local independent insurance agent can help you design a policy that satisfies all of your lender’s requirements.

And remember, even if you purchase your home for cash or you no longer have a mortgage, having homeowners insurance is always a good idea. 

What are the risks if I don't have homeowners insurance in South Carolina?

A: Homeowners insurance in South Carolina covers a wide range of perils that could potentially damage your home, your belongings, or certain other structures on your property. You need it in order to repair, replace, rebuild, and recover financially when your property or belongings are stolen, damaged, or destroyed by a covered peril. 

Typically, homeowners insurance helps you repair and rebuild your home and replace your belongings if they are destroyed by certain covered perils, or causes of loss, including (but not limited to): 

• Fire and smoke
• Lightning
• Wind
• Hail
• Theft
• Vandalism

If you experience any of these and do not have South Carolina homeowners insurance, how would you replace your belongings or rebuild your home?

Is Liability Coverage Included with Homeowners Insurance in South Carolina? 

A: What’s more, South Carolina homeowners insurance provides liability coverage. Liability coverage protects you if someone is injured at your home, or if you or a family member damages someone’s property. The liability coverage in your home insurance covers medical expenses and property repairs for third parties, and it covers your legal fees and financial settlements or judgments if you’re sued. 

Where can I find South Carolina homeowners insurance that fits my budget?

A: Homeowners insurance rates are definitely not one-size-fits-all, so it’s hard to know exactly what the South Carolina homeowners insurance premiums will be for your unique home. According to the Insurance Information Institute, the annual average premium for homeowners insurance in South Carolina is $1,269, or 17^th highest in the US. 

You can find affordable coverage, however, and your rates may be higher or lower than average depending on your home’s characteristics, your individual risk factors, and your coverage needs.

How Can an Independent Agent Help in South Carolina? 

A: A local independent insurance agent can help you shop around for the best rates and coverage for your needs. Independent agents aren’t tied down to one carrier, so they can obtain multiple quotes and help you make an informed choice.