Natural hazards and home insurance in South Carolina

Which hazards matter, and which policy covers each?

SCDOI points to the 1,000-year flood of 2015 as proof that floods can strike areas that had never flooded, “not only associated with hurricanes and wind events”. It advises considering a flood policy whether or not the property lies in a mapped flood zone.

Flood insurance and flood zones

The National Flood Insurance Program (NFIP) sells flood insurance in communities that follow its floodplain rules. According to FloodSmart:

• Building coverage goes up to $250,000 and contents coverage up to $100,000 for a home.
• Coverage takes effect 30 days after purchase, with exceptions. There is no wait when you buy the policy while making, increasing, extending or renewing a mortgage.
• Rates are set by location and needs and do not vary by insurance provider.
• A lender requires flood insurance if the home is in a Special Flood Hazard Area and the mortgage is government-backed. Some lenders require it elsewhere.
• If a property has received federal disaster aid before, flood insurance is required to qualify for aid again. This stays with the property, so it can apply to the home you buy.

You can look up a flood zone on FEMA’s Flood Map Service Center, which SCDOI links to, and ask your insurance agent for a quote before you make an offer.

Hurricane and wind cover on the coast

The state created the South Carolina Wind and Hail Underwriting Association as a residual market: its job is to provide wind and hail insurance for homes and businesses in the coastal area to owners who cannot get it elsewhere (S.C. Code 38-75-330). Under the statute:

• the “coastal area” is defined by location in Beaufort, Colleton, Georgetown, Horry and Charleston counties, such as land east of U.S. Highway 17 in Horry County and the barrier islands in Charleston County;
• you apply through a licensed agent or broker, and the policy term is at least one year;
• a structure built after September 15, 1971 is insurable only if built in substantial compliance with the building code and with NFIP construction and zoning requirements;
• the Director of Insurance may expand the coastal area, for periods of up to 24 months, to as much as the eight “seacoast” counties: Horry, Georgetown, Berkeley, Charleston, Dorchester, Colleton, Beaufort and Jasper.

SCDOI warns that once a storm is named and is likely to hit, insurers typically stop writing new policies and changes. Buy the right cover before hurricane season.

Earthquake cover

SCDOI states that no standard policy covers catastrophic earthquake damage, and that insurers sell an earthquake endorsement for an extra premium. It adds that in some areas the endorsement is typically inexpensive and worth considering, and says this is the case for South Carolina: fault lines run through the state, although earthquake activity is infrequent.

Programs that reduce the cost

• SC Safe Home grants help owners in designated coastal counties strengthen roofs and openings, up to $7,500 for resilient mitigation, $5,000 for sustainable mitigation and $3,000 for shutters. SCDOI’s page says the program is not currently accepting applications.
• Catastrophe savings accounts: money placed in the account and its interest are not subject to South Carolina income tax if left there or used for qualified catastrophe expenses; the amounts do not reduce federal income.
• SCDOI Insurance Locator (803-737-6180) connects you with local agents if you struggle to find property cover.

Greenville: what the official sources show

Greenville County is not one of the eight seacoast counties named in the statute, so its homes sit outside the wind association’s coastal area. Ask your insurer how it handles wind and hail for the address. The hazard that stands out in the official record is water.

FEMA lists these major disaster declarations that included Greenville County (excluding the 2020 pandemic):

Greenville County’s Floodplain Administration says the county’s 2021 FEMA flood maps are viewable in the county GIS system, that Letters of Map Amendment are available at its office (301 University Ridge, Suite S-3200), and that the county’s participation in the NFIP Community Rating System gives residents a 15% discount on flood policies. Its page also lists elevation certificates and a residential elevation grant program. Call 864-467-7523 before you buy.

What sellers must disclose

South Carolina’s seller disclosure statement (S.C. Code 27-50-40) covers roofs, foundations, plumbing, pests, environmental hazards and land-use restrictions. It does not name flood or wind in the statute’s list, so ask the seller and your agent directly. For property at or seaward of the state’s beachfront setback line, the sale contract must disclose the setback line and the local erosion rate (S.C. Code 48-39-330). Our seller disclosure page has the details.

See also our guides to homeowners insurance and flood insurance, and our page on buying a home in Greenville.