Key Takeaways
- South Carolina homeowners policies follow ISO standard forms with state-specific endorsements and coastal provisions
- The South Carolina Department of Insurance (SCDOI) regulates all insurance transactions and protects consumer rights
- Hurricane and windstorm coverage may have separate deductibles in coastal counties
- Flood insurance is not included in standard policies and must be purchased through NFIP or private insurers
- South Carolina requires 60-day notice before non-renewal of homeowners policies
South Carolina Homeowners Insurance
South Carolina follows national homeowners insurance standards with state-specific requirements enforced by the South Carolina Department of Insurance (SCDOI).
Standard Policy Forms
HO-3 Special Form (Most Common)
| Coverage | Type | Typical Limit |
|---|---|---|
| A - Dwelling | Open perils (special) | Replacement cost |
| B - Other Structures | Open perils | 10% of Coverage A |
| C - Personal Property | Named perils | 50-75% of Coverage A |
| D - Loss of Use | ALE coverage | 20-30% of Coverage A |
| E - Personal Liability | Occurrence basis | $100,000 - $500,000 |
| F - Medical Payments | No-fault coverage | $1,000 - $5,000 |
Other South Carolina Homeowners Forms
| Form | Property Coverage | Perils |
|---|---|---|
| HO-2 Broad | Dwelling & contents | Named perils only |
| HO-4 Renters | Personal property only | Named perils |
| HO-5 Comprehensive | Dwelling & contents | Open perils for both |
| HO-6 Condo | Unit improvements, contents | Named perils |
| HO-8 Modified | Older/historic homes | Actual cash value |
South Carolina Department of Insurance (SCDOI) Requirements
Consumer Protections
The SCDOI enforces specific requirements for homeowners insurance:
- Rate Filing: Prior approval or file-and-use depending on line
- Form Approval: All policy forms must be approved before use
- Disclosure Requirements: Clear explanation of deductibles and exclusions
- Non-Renewal Notice: 60-day advance notice required
- Claims Settlement: Fair claims handling practices mandated
Claims Handling Standards
South Carolina imposes claims handling requirements:
| Requirement | Standard |
|---|---|
| Acknowledge claim receipt | Within 15 days |
| Begin investigation | Promptly after acknowledgment |
| Provide claim status | Upon written request |
| Settlement or denial | Within reasonable time with explanation |
| Payment after settlement | Prompt payment required |
South Carolina Coastal Considerations
Hurricane and Windstorm Coverage
South Carolina's coastal exposure requires special attention:
| Factor | Consideration |
|---|---|
| Tier 1 Coastal Counties | Beaufort, Charleston, Georgetown, Horry, Jasper, Colleton |
| Separate Deductibles | May apply for named storms |
| Percentage Deductibles | 1%-5% of dwelling coverage common |
| Trigger | National Weather Service hurricane warning/watch |
Named Storm Deductibles
- Apply only when named storm causes damage
- Higher than standard deductibles
- Must be clearly disclosed at purchase
- Calculate based on Coverage A dwelling amount
Example:
- Dwelling Coverage: $300,000
- Named Storm Deductible: 2%
- Deductible Amount: $6,000
Flood Coverage
South Carolina has significant flood risk:
- Not covered by standard homeowners policies
- National Flood Insurance Program (NFIP) widely used
- Private flood insurance options available
- Coastal and low-lying areas require flood coverage for mortgages
South Carolina Weather Hazards
Unique Risks
| Hazard | Coverage Consideration |
|---|---|
| Hurricanes | Named storm deductibles may apply |
| Tornadoes | Standard windstorm coverage |
| Flooding | Separate NFIP or private flood policy |
| Hail | Covered under windstorm/hail peril |
| Lightning | Standard fire coverage |
Exam Tip: South Carolina coastal counties often have separate named storm deductibles that are percentage-based (1%-5% of dwelling value). These deductibles are much higher than flat dollar deductibles and must be clearly disclosed to policyholders.
How many days advance notice must South Carolina insurers provide before non-renewal of a homeowners policy?
Which South Carolina agency regulates homeowners insurance policies and protects consumer rights?
A South Carolina coastal home has $400,000 in dwelling coverage with a 2% named storm deductible. How much is the deductible for a hurricane claim?