Do you need flood insurance in South Carolina? What it covers & costs

South Carolina is among the top 10 states with the highest percentage of homes at risk of flooding, according to the Bipartisan Policy Center. From tropical storms and hurricanes along the coast to heavy rains in the mountains to rushing rivers in the lowlands, floodwater poses a significant risk throughout the Palmetto State.

For this reason, it’s important for homeowners to know that South Carolina home insurance does not cover damage from floods. To be insured against flood damage, residents can add a flood insurance endorsement to their home policy or purchase separate flood coverage.

How to get flood insurance in South Carolina

You can buy flood insurance in South Carolina through one of two avenues: a private insurer or the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA).

Private flood insurance options

Many private insurers sell flood insurance as a separate policy or as an endorsement (optional add-on) to standard homeowners insurance.

However, qualifying for coverage through a private insurer may be harder if your home sits in a Special Flood Hazard Area (SFHA) — the highest-risk flood zones, such as those along parts of South Carolina's coast. If you do qualify, though, premiums are often more affordable than through the FEMA-run program.

Private insurers also tend to get you covered faster. NFIP policies typically come with a 30-day waiting period, while private insurers may shorten that to 10 to 15 days, though this varies by insurer.

National Flood Insurance Program

While private insurers are an avenue worth exploring, some homeowners in the Palmetto State purchase their coverage through the NFIP instead. While FEMA doesn’t sell flood insurance directly, it oversees an extensive network of participating insurers that offer coverage even in high-risk areas.

Note that compared to private policies, NFIP policies are typically more expensive and come with limited coverage, in addition to a 30-day waiting period before the policy takes effect. NFIP flood insurance includes:

• $250,000 limit for the structure of your home (dwelling coverage)

• $100,000 limit for your personal belongings (personal property coverage)

Is it mandatory to have flood insurance in South Carolina?

Flood insurance is not required in South Carolina, but it’s highly recommended in most parts of the state, given coastal South Carolina’s frequent tropical storms and hurricanes and northwestern South Carolina’s heavy rains (particularly in the mountains). Flood insurance is often worth the cost even in areas with lower risk. According to FEMA, roughly 25% of NFIP flood claims come from homes in low- to moderate-risk flood zones.

Although South Carolina state law doesn’t require flood insurance, your lender might. If you have a government-backed mortgage (e.g., FHA loan, VA loan, etc.) and live in an official high-risk flood zone (such as Zone A, Zone AE, or Zone VE), the lender will require you to carry flood insurance until you’ve fully paid off the loan.

How much is flood insurance in South Carolina?

The median cost of flood insurance in South Carolina is $714, according to the most recent data from the NFIP. That said, how much you’ll pay for flood insurance depends on numerous factors, including the flood zone in which you live, the age and construction of your home, risk-reduction measures you’ve taken, and the coverage limit you select.

In the table below, you can see how much prices vary depending on where in South Carolina you live.

^{Source: National Flood Insurance Program}

It’s worth noting that FEMA’s most current data is from 2023, and flood insurance costs in South Carolina have been on the rise in recent years. Recent reports have found some South Carolina homeowners, particularly in lowcountry regions and along the coast, are being forced to choose between paying exorbitant premiums or moving farther inland.

Understanding how Risk Rating 2.0 impacts costs

Between 2021 and 2022, FEMA introduced a new pricing methodology for flood insurance known as Risk Rating 2.0. Under the updated model, policy costs (called premiums in the industry) are no longer based primarily on broad flood zone maps. Instead, FEMA can evaluate risk on a property-by-property basis to determine individual insurance rates.

FEMA looks at several home characteristics under the Risk Rating 2.0 model, including:

• Your home’s distance from water sources

• The type and frequency of flooding that affects your home’s area

• The elevation of its foundation

• The estimated cost to rebuild your property

Some areas of South Carolina may benefit from community discounts through the NFIP that make flood insurance more affordable, even in higher-risk coastal areas. For instance, North Myrtle Beach is considered a CRS Class 6 community, meaning it has taken certain measures to mitigate flood risk and manage its floodplain. As a result, the NFIP offers a 20% discount on flood insurance premiums for North Myrtle Beach homeowners.

To learn more about your home’s location and its corresponding flood zone, you can check out the South Carolina Department of Natural Resources flood mitigation maps or FEMA’s Flood Map Service Center.

What does $500,000 building coverage on flood policy mean?

Flood insurance in South Carolina covers damage to your home’s structure, up to a certain limit. Standard NFIP policies only provide $250,000 in dwelling coverage (and $100,000 in personal property coverage), but you may be able to get higher coverage limits via a private insurer, such as a $500,000 coverage cap.

That means, in the event of a loss following a flood, the policy would pay out up to $500,000 for repairs or to completely rebuild the physical framework of your home, including the foundation, walls, and built-in systems. However, you’ll have to meet your deductible — the amount you pay out of pocket before insurance covers the rest — before this coverage kicks in.

What is FEMA’s 50% rule?

All new homes and commercial buildings constructed in South Carolina must follow current flood protection standards. However, many properties across the state, especially South Carolina’s older, historic homes, were built long before today’s flood regulations existed. Owning an older property doesn’t automatically mean you’re required to renovate it to meet modern code requirements, however.

Instead, FEMA’s 50% rule applies when you renovate your home or make repairs following serious damage and the total cost of the work reaches at least 50% of the home’s present market value. (Importantly, this calculation applies only to the structure itself, not the total value of the structure and the land.) If construction work exceeds 50% of that value, you generally must update the property to follow current floodplain management standards.

In some cases, those updates can be extensive. For homes located in high-risk flood zones, especially at lower elevations, compliance may involve elevating the structure so floodwaters can move beneath it. According to home services company Angi, this kind of work can cost upward of $25,000.

How to mitigate flood damage in South Carolina

Though South Carolina homes face serious flood risks, you can take proactive steps to minimize and even avoid damage during heavy rains and tropical storms. Some home improvements may even qualify you for insurance discounts or be eligible for tax breaks to make them more affordable.

Here are several ways to protect your home from flooding in SC:

• Improve yard drainage: Hire a landscape contractor to grade your yard so that water drains away from the foundation, not toward it. Keep gutters, drains, and runoff paths clear of debris so water doesn’t back up.

• Elevate important outdoor equipment: Raise essential systems (think HVAC units and electrical panels) onto platforms above expected flood levels.

• Allow water to flow through safely: Install flood vents in garages and foundation walls to reduce water pressure buildup, and consider installing a sump pump to remove water that collects beneath your home.

• Add water barriers: Seal cracks in your home’s foundation and basement walls, install flood-resistant doors with sealed gaskets, and use waterproof covers for lower-level vents.

Other home hardening solutions may also protect key components of your house, such as your roof and windows, during tropical storms and hurricanes.

Frequently asked questions

Does a standard South Carolina homeowners insurance policy cover flood damage?

A standard home insurance policy in South Carolina specifically excludes flood damage, including damage from rising surface water and storm surge. Instead, you’ll need to purchase a separate South Carolina flood insurance policy or add coverage for flood damage as an endorsement to your core policy.

What is the difference between flood insurance and water backup coverage?

The key distinction between flood insurance and water backup coverage comes down to the source of water entering your home. Flood insurance protects against damage caused by rising surface water originating outside the property, such as overflowing rivers, storm surge, or heavy rains.

Water backup coverage works differently. An optional endorsement to a standard home insurance policy, it covers damage caused when water or sewage backs up into the home through drains, sewer lines, or sump pump failures.

What factors cause flood insurance premiums to change over time?

FEMA’s new Risk Rating 2.0 flood insurance pricing model uses several factors to determine risk — and thus the appropriate cost of flood insurance policies — for individual homes. Among the factors that go into this decision are your home’s flood zone and proximity to major flood threats (like rivers or the coast), as well your home’s foundation elevation, the types and frequency of floods in your area, and the estimated cost to rebuild your home.

If you’ve taken individual steps to mitigate flood damage, you may qualify for insurance discounts to lower your policy cost. Similarly, if you live in a community that participates in NFIP’s voluntary floodplain management program, you may qualify for an additional flood insurance discount.

Is there a waiting period for private flood insurance policies in South Carolina?

All insurers typically have a waiting period before flood coverage begins. The waiting period for private policies will vary by insurer but is often between 10 and 15 days. This is notably shorter than the standard waiting period of 30 days for policies from the FEMA-backed National Flood Insurance Program.