South Carolinians have Myrtle Beach, Darlington, Tigers and Gamecocks football, Stephen Colbert, and relatively high rates on house insurance. According to the National Association of Insurance Commissioners' 2007 report, South Carolina residents paid an average $808 for insurance—higher than 70% of the country. Let's look at how you can save the most on your South Carolina house insurance rates. But first we'll break down what a typical policy looks like.
South Carolina House Insurance 101
Here are the typical sections of a common homeowner's policy.
- Coverage A- Damage to House
This will pay to rebuild/repair your home in the event of a peril such as fire, tornado, etc. If you have a mortgage, your lien holder will probably want at least 80% of the home's value insured.
- Coverage B- Other Structures
This covers unattached property like sheds and garages and is typically 10% of your home's coverage amount.
- Coverage C- Personal Property
This repairs or replaces your personal belongings and coverage is usually 50% of your home's amount of coverage.
- Coverage D- Additional Living Expenses
This pays for alternate living arrangements should your home become unlivable because of a peril covered in Coverage A. It's usually about 20% of the home's coverage amount.
- Coverage E- Comprehensive Personal Liability
This protects you in the event someone is injured on your property. It typically covers law suits and damages and usually starts at $100,000 per accident.
- Coverage F- Medical Expense
Pays for medical expenses per person, per accident when someone is injured on your premises.
More South Carolina House Insurance Info
A Catastrophe Savings Account is an account South Carolina residents can set up with a bank to help pay for qualified catastrophe expenses. Interest earned can be deducted from your South Carolina taxable income. You must own a single family residence to qualify.
The amount of coverage for your home should not be based on the market value or the tax assessed value and should not include your land and foundation. It's the amount to rebuild using today's construction costs usually expressed as a cost per square foot.
The difference between "actual cash value" (ACV) and "replacement cost" .
ACV takes depreciation (age, wear, tear) into consideration when calculating for a loss. For example, a tornado takes off your 10-year-old roof and needs to be replaced. If the average life of a roof is 20 years, you'd most likely be reimbursed for half of what a new roof would cost. Replacement cost—usually purchased at a slightly higher premium—replaces, repairs, or rebuilds using the same or similar materials without considering depreciation.
Flood insurance is not included in a standard policy. Rates—averaging about $300 a year—are based on risk and amount of coverage. Check floodsmart.gov to find your property's risk.
Sample South Carolina House Insurance Rates
The South Carolina Department of Insurance surveyed the state's largest insurance companies to show consumers the various ranges of rates. Here are a few county scenarios:
Charleston County Scenario- Brick home built in 2005 with $150,000 Dwelling coverage with full replacement costs; $100,000 Liability; $1,000 Medical Payments; $3000 hurricane deductible.
Rates ranged from $1,461 to $3,170.
Richland County Scenario- Brick home built in 2005 with $150,000 Dwelling coverage with full replacement costs; $100,000 Liability; $1,000 Medical Payments; $500 deductible.
Rates ranged from $470 to $1,190.
Greenville County Scenario- Brick home built in 2005 with $150,000 Dwelling coverage with full replacement costs; $100,000 Liability; $1,000 Medical Payments; $500 deductible.
Rates ranged from $340 to $989.
Getting the Lowest South Carolina House Insurance Rates
Now let's look at some specific ways you can save up to 50% on your rates—insurance companies discounts. Here's a brief list of potential discounts:
- House protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
- New house discounts. The newer the house the lower the risk.
- Multi-line (house, auto, life)
- Senior (55+)
- Non-smoker
- Paying in advance vs. making monthly or bi-monthly payments.
- Payroll deducted payments.
- Military
If you read the above scenarios you could see how varied the market is with rates. So the biggest way to save on your South Carolina house insurance rates is to comparison shop with a company like LocalInsurance. LocalInsurance searches the web for agents in your area, giving you a handful of rates and companies to compare. It's quick, easy and could save you hundreds.
South Carolina has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.
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