Overview on Homeowners Insurance in South Carolina

Those who purchased their homes through mortgage might be familiar with homeowners insurance, since some lenders in South Carolina require homeowners to purchase one prior to mortgage approval. This is but logical, since a homeowners insurance policy is designed to cover potentially huge losses resulting from disasters.

There are several coverage typically included in a homeowners insurance policy. These include coverage for property damage as well as for any liability arising from injuries and accidents that happen within the property. The amount of coverage for property damage would depend on the kind of policy purchased. Those who purchased replacement cost policies should expect to rebuild their homes for the actual cost of its construction, as well as have their personal property replaced with brand-new ones. This kind of coverage does not come cheap, however, as most insurance providers require homeowners to insure their homes for at least 80% of the cost to build. To get lower premium rates, some consumers opt to insure their home for actual cash value, which takes depreciation cost into consideration when it comes to paying for claims.

There are also several factors that will influence the premium rates being imposed on homeowners insurance policies in South Carolina. One of construction materials used to build the house. Logically, wooden houses are more expensive to insure compared to concrete or brick structures. Insurance providers also take into consideration the degree of fire protection services in the neighborhood. The Insurance Services Office is the one assigned to evaluate the fire-fighting capability of a municipality or an area. Those who are graded with 1 are considered to have the best quality of fire-fighting services available. There is a good possibility that households with lower-grade services are imposed with higher premium rates. The actual geographical location of the property also has bearing on the premium rate imposed. Rates are higher for properties located on the beach, where windstorm damages are always possible. Consequently, houses located inland carry lesser risks of damages due to strong winds, driving insurance costs down.

In cases when private insurance companies refuse to extend homeowners insurance coverage, residents in South Carolina can opt to take several options available. Those with older homes can purchase modified coverage forms in which losses is settled by paying for the actual cash value of the home, which is less than the cost to rebuild it. There are also low valued dwelling polices for homes insured in amounts less than the minimum typically paid by most insurers. Some structures can also be insured with standard fire policies, which specifically provide coverage only for structural damages caused by fire and lightning and not for its contents. There are also excess and surplus lines insurance policies which are not covered under the South Carolina Guaranty Association. This type of policy is not licensed by the state though licensed insurance providers are allowed to sell them.

The state also has specific rules when it comes to cancellation and non-renewal of homeowners insurance. Within the first 120 days in which the policy has been in effect, insurance providers are allowed to cancel it for any reason they deemed reasonable. They are only required to given written notice to the policyholder at least 30 days before the cancellation will take effect. Beyond the stipulated 120 days, a homeowners insurance policy can no longer be cancelled, except for reasons allowed by the state. These include nonpayment, misrepresentation of facts by the policyholder during the application process, breaches of contractual duties and conditions, and changes in the risk assumed by the insurer. In all these cases, the provider is required to provide written notice to the policyholder.

We help our South Carolina customers in Columbia, Charleston, North Charleston, Greenville, Rock Hill, Mount Pleasant, Spartanburg, Sumter, SC and other cities in the Palmetto State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our South Carolina insurance agent and broker network, you can easily compare rates from multiple insurers.

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