South Carolina flood insurance

Why South Carolina homeowners need flood insurance

Flooding is a significant risk across much of South Carolina. Overflowing rivers, dam failures, storm surges, hurricanes and prolonged rainstorms are just a few of the events that can lead to major flooding. Most recently, the Edisto River flood of 2024 caused up to 20 dams to fail, two deaths and more than $30 million in damages. 

You might assume that you only need flood insurance in South Carolina if you live near the coast. However, inland waterways—even minor ones—have experienced flooding in the state in the past. The entire state has low-lying topography, as well as a humid subtropical climate, and both these factors make flooding more common than you might think. Even a small flood, such as a clogged drainage ditch outside your home, may cause expensive damage that would not be covered by your primary homeowners insurance policy.  Flood insurance, in that case, could save you thousands of dollars.

In addition, some South Carolina homeowners need flood insurance to satisfy the requirements of a mortgage. Lenders often require homeowners with properties in high-risk flood zones to carry flood insurance until their mortgage is paid off. Even if flood insurance is not required, many South Carolina homeowners elect to buy this type of coverage anyway.

Real-life residents of South Carolina talk about flood insurance

We looked to Reddit.com to see what residents of the Palmetto State are saying about the need for flood insurance. Our general takeaway? The closer you live to the coast, the more likely you'll want to consider flood insurance, though even inland waterways can flood. Here are a few comments we found:

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Cost of flood insurance in South Carolina

The average cost of flood insurance in South Carolina from the National Flood Insurance Program (NFIP) is $725 a year, which is below the national average of $926. The average claim paid out on these government-supported policies was $68,000 between 2016 and 2021, the latest years for which data are available. When considering how much flood insurance is in South Carolina, however, remember that every policy is unique, based on attributes that are specific to you and your property, so your rate is likely to vary.

To calculate flood insurance premiums, there are a range of factors that insurers, including the NFIP, will consider. Your flood insurance cost in South Carolina will depend partly on the carrier that writes your policy. In the past, FEMA wrote most flood insurance policies, but now there are a number of private insurers offering flood coverage. Because of this, rates have become more competitive and you may find the best flood insurance for your needs by asking for quotes from several companies to see who offers you the lowest rate.

Other factors that your insurer will consider include the following:

• Location: Historic records of flooding in your region may indicate a likelihood of future floods. Areas that have seen more significant rates of flooding are likely to see higher premiums.
• Home age and construction costs: Newer homes that have been built to withstand flood waters are less vulnerable to damage than older homes in many cases. NFIP residential building policies cover a wide range of your home’s elements, including electrical and plumbing systems, foundation walls, kitchen appliances and solar energy equipment. Higher replacement costs generally lead to higher flood insurance premiums.
• Type of property: Flood insurance premiums are often assessed differently for residential and commercial buildings. The NFIP offers up to $250,000 in building coverage and up to $100,000 in contents coverage for residential properties. You must buy building and contents coverage separately.
• Coverage limits and deductible: Typically, you will pay more for higher levels of coverage than lower. A higher deductible may also lead to a lower cost since it means you will pay more out of pocket before your policy kicks in after a covered claim.
• Type of policy: You may pay a lower rate if you qualify for the NFIP's Preferred Risk Policy, which offers reduced pricing if you are in a low-risk flood area.

In October 2021, FEMA began implementing Risk Rating 2.0, a simplified risk rating plan that calculates flood insurance premiums based on factors such as flood frequency, flood types, distance to a water source, home rebuild costs and elevation. The goal of Risk Rating 2.0 is to make flood insurance premiums fairer by setting rates based on a homeowner’s unique flood risks. However, some private insurance companies also offer flood insurance with regulations that may be different from the NFIP.

When to purchase flood insurance

If you wait until a hurricane or tropical storm appears on the radar to buy flood insurance in South Carolina, you might be too late. NFIP policies have a 30-day coverage waiting period. However, there are some exceptions. The 30-day waiting period does not apply, for instance, when you refinance your home, when you extend or increase the coverage of an existing flood insurance policy or if your home floods as the result of adjacent federal land laid bare following a wildfire. The waiting period is also waived if you buy flood insurance on a property you just purchased.

For a policy that covers a property located in newly designated high-risk flood areas, the NFIP applies a one-day coverage waiting period, but only when the policy is purchased within 13 months of the designation. To check if you qualify for this one-day coverage option, you can enter your address in the FEMA Flood Map Service Center.

NFIP policies feature a one-year term, which you can renew to continue coverage. They also feature a 30-day renewal grace period. The NFIP may pay claims for covered losses that occur during the grace period, but only if you pay the renewal premium before the grace period ends.

It's worth noting that insurers may issue a moratorium on writing new policies or modifying existing policies in the days before a natural event such as a hurricane is forecast. This is so that carriers are able to pay out on all potential losses without suddenly taking new policies as the storm approaches. In some cases, state law may also issue a moratorium to keep insurers from canceling policies before a predicted disaster, to protect policyholders.

Private insurance companies that offer flood insurance may have different regulations than the NFIP.

How to purchase flood insurance in South Carolina

If you decide to purchase flood insurance, or your mortgage requires it, a good first step might be to talk to your home insurance agent. Not all insurance companies offer flood insurance, but many do, and the coverage they provide may offer more flexibility than an NFIP policy. You can find out which companies sell flood insurance by using the NFIP's flood insurance provider lookup tool. Currently, insurers that offer flood insurance to South Carolina residents include Allstate, American Family, Auto Owners, and Farmers.

A benefit of choosing a private insurer rather than the government-run NFIP is that you may find higher coverage levels, more flexible payment terms or other benefits. Remember that NFIP policies only pay out claims up to $250K for dwelling coverage, and $100K for contents insurance.

Even if you don't purchase your policy from the NFIP, however, you may want to spend time on the organization's website. There are consumer-focused tools there, such as information about how to build back better after a flood and how to qualify for Increased Cost of Compliance coverage, which is funding that allows you to make changes to lower your flood risk.

According to the NFIP, a few ways in which you can save on flood insurance are by paying a higher deductible, providing an elevation certificate for your property, implementing certain flood-mitigation strategies and checking whether your community is enrolled in a community rating system.

How much flood insurance do I need?

Determining how much flood insurance you need is a personal decision, based on your finances, the risks of flooding in your location and the limits available. NFIP insurance can be purchased for up to $250,000 in dwelling coverage and $100,000 in coverage for your belongings. Remember that these two types of insurance need to be purchased separately with NFIP coverage.

If you feel you need more coverage, you may want to look into private flood insurance, which is available from a number of insurance companies and may include higher coverage limits.

If you are a renter, you can also purchase flood insurance. However, in that case, you will only need to buy property coverage for your personal belongings. Your landlord's insurance policy should provide coverage for the structure itself.

Small business owners may also benefit from flood insurance. NFIP policies for businesses include the two types of coverage: for the building and for its contents, and each type is available for up to $500,000 in coverage.

Frequently asked questions