Flood Insurance in South Carolina

Flash flooding and heavy rainfall threaten South Carolina statewide, while properties near the coast are subject to damage from storm surges and erosion, especially during hurricane season. 

Just recently, in 2023, Tropical Storm Idalia dumped excessive rain around eastern South Carolina, causing some of the highest recorded water levels in Charleston’s history.

Damage from any of these flood-related events is excluded from your homeowners insurance policy. Read on to learn the importance of flood insurance and how much the right plan could cost you in South Carolina.

The average flood insurance cost in South Carolina is $798 annually. However, under the National Flood Insurance Program’s new rates, the cost of flood insurance will increase to $1,531 per year on average.

The NFIP, managed by the Federal Emergency Management Agency (FEMA), is the largest flood insurance provider in the country, with over 5 million policies nationwide. The NFIP has over 88,000 policies in force in South Carolina. 

Over 27,000 of these policyholders will see their premiums decrease under Risk Rating 2.0, a new methodology from the NFIP for calculating rates that they began in 2021. 

However, over 112,000 will experience increases under RR 2.0 in South Carolina in some fashion, although about 100,000 of those people will have their premiums rise under $120 per year.

The table below shows average South Carolina flood insurance rates by county before and after premium changes from RR 2.0.

RR 2.0 rates were enacted on October 1, 2021, for new NFIP policies. For existing NFIP policyholders, RR 2.0 rates began to take effect on April 1, 2022, but, depending on the size of your increase, it may take some time to realize your full, new risk-based premium since the NFIP caps increases at 18% per year.

However, these numbers are averages, and you won’t know your exact premium until you get a quote. The cost of flood insurance in South Carolina varies due to many factors about your home and location.

Flood insurance covers your home and belongings from instances of flooding. FEMA defines a flood as “a general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land.” Common instances of flooding include storm surges, mudslides, and sudden coastal or bank erosion.

Flood insurance policies are generally divided into two sections based on given coverage:

While the NFIP is the largest flood insurer in South Carolina, it isn’t the only option. Depending on your coverage wants and needs, a private flood insurance company may offer the best flood insurance in South Carolina for your circumstances.

The private flood insurance market is relatively small but growing over time as technology improves. It’s estimated that private flood insurance companies make up about 10% of the market, but you shouldn’t discount their coverage. Private flood companies can sometimes offer better coverage than the NFIP at competitive rates.

As a government offering, the NFIP has some benefits and drawbacks. It’s available anywhere, even in the most flood-prone places where private carriers might not be willing to offer policies. There’s also no chance of it failing and being unable to pay your claim. Although unlikely, a private company always has the possibility of going bankrupt, possibly unable to pay your claim, and leaving you needing to find another provider.

However, the NFIP has financial constraints. It’s not a profit-seeking enterprise. Funded by the government, it runs at a deficit and loses millions every year paying out claims. As a result, the NFIP has strict caps on coverage limits. You can have a maximum of $250,000 in building coverage and $100,000 in contents coverage.

Additionally, some homes in South Carolina have basements. Basement coverage is very limited in NFIP plans since basements are typically entirely below ground and are the most prone to flooding should water enter your home.

There’s also a waiting period once you get your plan. An NFIP policy doesn’t become active until 30 days after purchase.

There are several private flood insurance companies in South Carolina. An immediate benefit of coverage from a private company is higher policy limits. Where you can only be covered up to $250,000 for building coverage with the NFIP, private carriers often offer dwelling limits of up to $1 million or more and contents coverage of $500,000 or more, depending on the company.

Private flood carriers also often don’t have as long a waiting period for their policies to kick in. And, they may offer more coverage options, like loss of use coverage.

As we mentioned earlier, the primary drawbacks of private flood coverage are that it may not be available in your area, and the carrier you choose could ultimately go out of business. Also, private firms could raise rates more than the NFIP. FEMA limits rate increases to 18% yearly, while you may not find this at a private company.

The average cost of flood insurance in South Carolina will rise to $1,531 per year under the NFIP’s RR 2.0. Many people’s premiums will increase. Some of the most critical factors that affect South Carolina flood insurance rates are:

Your home’s distance from water sources, like coastal banks, oceans, and rivers, influences your flood insurance rates. In South Carolina, homes on or near the Atlantic coast are much more likely to flood from storm surges than inland homes.

According to FEMA, counties with the highest storm surge risk in South Carolina are :

These places tend to have higher flood premiums, likely as a direct result of this increased flood risk.

Your home’s elevation is also important. Homes higher above sea level are less likely to flood and generally have lower premiums.

Location and elevation used to be the primary determinants before RR 2.0. But, under the new methodology, the NFIP reports it’s accounting for many other factors also, such as essential home characteristics and existing flood mitigation measures.

For instance, the foundation type of your home plays a role in your rates. Risk varies based

on its design and location above or below ground. Construction materials for your home are also important. Masonry homes tend to perform better in floods than frame homes, so brick or concrete houses can have lower premiums.

Flood insurance isn’t required by law in South Carolina. But, your mortgage lender may require you to get a flood insurance policy if you’re in a high-risk flood zone.

FEMA maintains maps that determine flood risks in every part of the country. They break up cities, counties, and neighborhoods into zones based on the likelihood of flood risk. People in high-risk zones, called Special Flood Hazard Areas (SFHAs) are the most prone to flooding and typically pay the highest flood insurance rates.

If you have a mortgage on a home in an SFHA, your lender will require you to have flood insurance as part of the home loan. This way, if your home gets destroyed by a flood, the lender can recoup the money it invested in your house through the flood insurance policy. Homeowners insurance doesn’t cover floods, so it wouldn’t help in this scenario.

Clovered can help you get flood insurance quotes in South Carolina from the NFIP and private companies quickly and easily with our online quote form. It takes minutes to fill out; once you submit it, one of our licensed agents will get back to you with your coverage options.

If you’d rather quote over the phone, feel free to give us a call at 833-255-4117 during business hours. You can also email our team with any questions at agent@clovered.com.

As an independent insurance agency with years of experience and expertise in all property insurance matters, we’d be happy to help you with your South Carolina flood insurance quote.

The average cost of flood insurance in Charleston will rise from $852 to 1,575 annually under the NFIP’s RR 2.0. This incoming rate is slightly above the state average of $1,351 yearly.

Charleston, the most populous city in South Carolina, is right on the Atlantic coast, leaving it very vulnerable to potential storm surges and coastal flooding, evidenced as recently as 2023 with Tropical Storm Idalia. 

The city government reports that all Charleston properties are in a federally designated flood zone, while many homes around the Ashley, Cooper, and Wando Rivers are in high-risk zones. The city also notes that many properties in Charleston can experience further coastal flooding risk due to possible rising sea levels over the coming decades. All Charleston residents should consider a flood insurance policy.

There is some good news to look forward to if you get a flood insurance quote in Charleston. While the city’s many coastal flooding and hurricane threats contribute to above-average premiums, Charleston’s participation in the NFIP’s Community Rating System (CRS) can qualify citizens for discounts of up to 20% on flood insurance, depending on their flood zone.

The CRS is FEMA’s way to incentivize communities to create and implement flood insurance measures. Places that try to minimize flood damage through building ordinances and conservation receive flood insurance discounts on NFIP policies.

CRS participation is ranked on a one-to-ten scale, with one being the most active and qualifying for the largest discounts. Charleston currently holds a CRS rating of six.