Homeowner's Insurance in South Carolina
If you are actively searching for a home in the state of South Carolina, choosing the proper amount of insurance can be the difference between optimal financial protection and potential financial ruin.Research as much as possible, and compare online quotes from a variety of insurance providers to ensure you are buying the best possible insurance policy for your home. However, after you have chosen an insurance company, it is vital that you periodically update your policy. This should happen at least once a year or after any major change to your home or property. If you have any specific questions regarding homeowner's insurance in South Carolina, you can visit the website http://www.doi.sc.gov/or contact:
Department of Insurance
Post Office Box 100105
Columbia, SC 29202
803-737-6160
What determines the cost of my policy?
- Credit history: Your credit score affects every financial purchase in your life including the cost of homeowner's insurance.
- Type of home: The style of home greatly affects the cost of your insurance policy. For example, a sturdy brick house costs less to insure than a wood frame model.
- Age of home: The rule of thumb is, new homes are less expensive to insure than their older counterparts are. This is due to the fact that older homes may have outdated and unreliable elements such as plumbing, electrical wiring, and roofing.
- Deductible amount: Like most forms of insurance, choosing a higher deductible results in lower scheduled payments.
- Amount of coverage: The amount and type of insurance you carry on your home greatly affects your policy costs. For example, a resident living on the coast carries more damage protection than a land locked resident and therefore has to pay more of a premium.
- Local fire protection: The proximity of your home to an established fire department or hydrant greatly affects the price of fire protection within your policy.
- Potential discounts: Each insurance company has their own list of special discounts, which can reduce costs. Some of the most popular items include theft prevention devices such as siren based alarms and additional locking mechanism installed in your home.
Basic homeowner's insurance only covers specific instances of liability. However, it may be in your best interest to amend your policy with additional coverage such as:
- Flood insurance: Most insurance companies do not provide flood protection. However, separate flood insurance is available either through a traditional insurance provider or through the National Flood Insurance Program.
- Windstorm insurance: Though typically covered under your primary policy, some parts of South Carolina's coast are not. Additional or separate coverage is required in these situations.
- Additional personal property coverage: With a standard homeowner's insurance policy, there are limits regarding the loss of personal property. However, if you are in possession of expensive personal items such as musical equipment or a collection of rare sculptures, carrying additional coverage might be a wise idea.
- Inflation guard endorsement: Insurance companies require that homeowners carry a minimum amount of insurance equal to 80% of a home's value. However, since the value of your home changes due to the market and inflation, carrying the minimum amount of insurance is not always possible with the initial policy. Homeowners' policies adjust automatically with this form of additional coverage.