Best Landlord Insurance in South Carolina

South Carolina’s warm summers, beautiful scenery, and exceptional coastline attract travelers from all over, encouraging many to stay permanently. Demand for rentals is high. To protect their rental properties, landlords need landlord insurance in South Carolina.

In this in-depth guide, we break down the information those looking for landlord insurance need to know to find the best policy.

The average cost of landlord insurance in South Carolina is about $2,005 per year for a $200,000 house and $3,150 per year for a $350,00 home.

Landlord insurance premiums vary based on many factors. Similar houses in the same neighborhoods can have different rates due to certain features, construction methods, claims history, and more.

Rental property insurance premiums are typically 15% to 25% higher than homeowners insurance premiums for the same properties. Using this common statistic and the numbers we compiled for average homeowners insurance costs in South Carolina, we approximated landlord insurance rates for 22 major cities in the state.

You’ll see that there are separate numbers for frame and masonry homes. The construction style is a significant factor in determining rates. Masonry homes, built from brick or concrete, tend to have lower premiums than frame homes constructed from wood. This is because masonry homes are more resistant to strong winds and less prone to fire damage.

Costs vary by the city due to many reasons. You may notice that some more costly towns, such as Bluffton, Beaufort, and Charleston, are on the Atlantic coast. Since the risk of hurricane and tropical storm damage is much higher in coastal areas, these places tend to pay more for insurance to offset the increased chances of wind damage.

See how rates for rental property insurance in South Carolina jump on homes worth $350,000 below.

As you might imagine, larger, more expensive properties need more insurance coverage. And, the more insurance you need, the more you must pay. In Greer, the cheapest city on the list, premiums increase by about 57% when increasing property value to $350,000 from $200,000.

In Bluffton, the most costly city, rates went up 61%. You’ll always pay more for extra coverage. 

Landlord insurance policies have several coverages that protect you in more ways than you may realize. Landlord policies cover your property and personal liability. Your coverage options are as follows:

Only some plans will include all of these coverages. Generally, the more coverage you want, the more it costs. You can choose from one of three types of landlord insurance policies in South Carolina.

DP-1 policies are the most basic option, thus, usually the cheapest. They cover only a few sources of damage, notably wind and fire damage. They typically exclude liability and personal property coverage and pay all losses at actual cash value. Actual cash value coverage means your provider will factor in depreciation before paying you for property losses, greatly lowering your payout.

DP-2 policies cover more damage, including freezing pipes, snow (and ice) damage, theft, and vandalism. They also usually cover your property at replacement cost. DP-2s are a good middle ground for budget and coverage needs, although they may also exclude liability coverage. 

DP-3 insurance plans cover the most sources of damage at replacement cost. Depending on your carrier, they can include liability and personal property coverage by default. DP-3s are the most costly option because of their optimal protection.

Choosing the best South Carolina landlord insurance policy for yourself will require an understanding of your coverage needs and budget. Once you know what coverage works for you and how much of that coverage you need, you should compare quotes from a few providers to find the best deal.

DP-3s offer the most coverage, but you may not need one in every scenario. DP-3s are good for second or vacation homes with several different tenants throughout the year. If you know you won’t have tenants for a while, you may be more comfortable settling for a DP-2 without liability coverage.

Consider your specific relationship with your rental property. If you have no personal belongings or other structures at your rental, you can drop these coverages to save money. Where you live will also affect your decision. For example, a DP-1 might not suit you if you live out of state and can’t monitor your rental. If a pipe bursts and no one stops the damage, you’d be totally uncovered unless you had a DP-2 or DP-3.

When getting quotes, it may take a little time before you find the best deal. Landlord policies are typically for one-year terms. You can always switch providers if you’re unhappy with an upcoming rate hike when your policy renews. Just be wary of potential cancellation fees if you end your plan early.

Fort Mill, Greenville, Greer, and Spartanburg have some of the cheapest landlord insurance in South Carolina. These cities are very inland, thus are well insulated from potential hurricane damage that drives up premiums in towns closer to the Atlantic coast.

In addition to home value, home age is also a very important rate factor. Older houses tend to have more issues that lead to claims, such as leaky pipes, weathered siding, and dated HVAC components. Old houses also have older roofs that are more susceptible to wind damage from hurricanes and tornadoes. 

The materials a house was built with also influence rates. Masonry homes constructed with brick or concrete often have lower premiums than wooden, frame homes, which will carry over despite age differences in properties.

The four tables below reflect average landlord insurance in South Carolina for houses categorized as young (1 to 34 years old) and old (35 or more years old), separated by construction style. You’ll see that the cheapest landlord insurance in South Carolina can be found on newer, masonry homes.

Newer homes worth $200,000 often had premiums that were hundreds of dollars cheaper than older houses with the same valuation. In some cities, the difference was over $500 per year. Look how the trend continues on $350,000 homes, where some rates on older, frame homes climb to over $5,000 per year on average.

Compared to newer homes at the $200,000 valuation, rates on homes worth $350,000 of the same age can cost thousands more in some places. Rates climb even higher when looking at older houses, making it even trickier to find cheap landlord insurance in South Carolina for old, expensive houses.

South Carolina rental property insurance companies look at a lot of variables to determine premiums accurately. They closely examine several factors about you and your property to determine if giving you a policy is financially wise for them. Some of the most important considerations are:

We already discussed how construction style, home value, and home age influence premiums. Carriers will also look at the policy history of you and your property. 

You may pay higher premiums if you’ve recently filed multiple property insurance claims. Insurers believe someone who has filed claims is more likely to file again than someone who never has. They raise your premiums to offset their increased odds of a claim payout.

We went over how homes closer to the South Carolina coast have higher rates due to hurricanes. Know that homes in flood zones or high-crime areas may also have higher premiums due to the increased risk. You may also receive discounts if you’re within 1,000 feet of a fire station or fire hydrant.

A crucial factor in landlord insurance is the type of rental property the carrier will cover. Your premiums will vary related on the kind of dwelling you have:

Larger, multi-family units with more tenants will likely have higher premiums than apartments or condo units.

Landlord insurance is required in South Carolina when rental property owners have mortgages. No law requires landlord insurance, but lenders do. Even if you don’t have a mortgage, it’s highly recommended that you keep landlord insurance on your rental.

Lenders require insurance to safeguard their financial investment in your property. If a covered loss destroys the building, the insurance company can reimburse the lender for the money they put down or rebuild the house, so they don’t lose money.

If you live in a property with tenants, like a duplex, or rent a second or vacation home out, homeowners insurance won’t cover you properly. You’d need landlord insurance. 

 It’s always recommended to have landlord insurance regardless of mortgage status. Property damage or tenant injuries can easily cost tens of thousands to mend. To avoid the risk of paying for unexpected damages out of pocket, you should always have reliable rental property insurance in South Carolina.

No law requires landlord insurance in South Carolina, but lenders always require property owners to have insurance coverage when giving home loans. If your rental property has a mortgage, you need landlord insurance.

Mortgage companies mandate home insurance when giving loans to protect their investment in your property. That way, if a natural disaster destroys the residence, the lender can recoup their money from the insurance provider.

If you have a rental property with a mortgage, you’d need a type of landlord insurance since homeowners insurance won’t cover properties with tenants. This would satisfy your lender’s requirements.

Note that if your rental is owned through a business entity or trust, you’d need a type of commercial landlord insurance policy, which differs from the residential DP policies we’ve reviewed here.

You should be able to find the coverage you need at the price you want when getting landlord insurance quotes in South Carolina after comparing several providers. At Clovered, you can quote online or by phone with one of our agents.

We’re an independent insurance agency, so we can help you find the best policy from one of our many partners. You can use our online quoting tool to compare policies from some of the top South Carolina landlord insurance companies in your area and bind the one that works for you.

You can also speak to one of our in-house agents on the phone by calling 833-255-4117. Feel free to email us at [email protected] with any questions, too. We’ve helped over 30,000 with their property insurance needs, and we’d love to help you with your South Carolina landlord insurance quote.