Homeowners across South Carolina are asking why their insurance premiums jumped so much this year. We hear it every week from clients in Spartanburg, Mullins, and throughout the region. Here’s what is driving the frustration: South Carolina homeowners insurance rate increases were among the highest anywhere in 2025, and the trend continues in 2026. For many families, keeping enough insurance coverage in place has gotten more expensive, even with a claim-free history.
According to Insurify, renewal rates rose by 20% or more, despite no claims being made. The increases are happening statewide, driven largely by market conditions rather than individual claims history. Here’s why rates are climbing and where homeowners still have options.
What’s Actually Driving South Carolina’s Rate Increases
Several forces are compounding at once in South Carolina.
Reinsurance Costs
Insurance companies buy reinsurance coverage to protect against catastrophic losses. Think of it like insurance for the insurance company. After several years of major weather events in the Southeast, reinsurance has become much more expensive. Carriers pass those costs to all policyholders through higher premiums, not just to homes that filed claims.
Approved Coastal Rate Increases
The South Carolina Wind and Hail Underwriting Association, the state-created insurer that covers wind and hail risk along the coast, filed for an 8% rate increase on dwelling policies and a 25% increase on mobile home policies, effective February 2026.
The South Carolina Department of Insurance approved the filing as neither excessive nor inadequate. That’s an in-force rate change specific to South Carolina’s coastal wind exposure.
Roof Age
Since late 2025, many South Carolina insurers have moved older roofs from replacement cost to actual cash value coverage, reducing payouts due to depreciation and possibly increasing premiums or renewal requirements. These changes apply statewide, reflecting shared risk and broader market pressures rather than an individual homeowner’s claims history.
The difference matters at claim time. Replacement cost coverage pays the full cost to repair or rebuild using similar building materials, up to your coverage limit, with no deduction for normal wear. Actual cash value factors in depreciation, so a payout under ACV can run about half the estimated replacement cost of an older roof, leaving homeowners to cover the gap out of pocket.
Why This Isn’t Just a Coastal Problem
While coastal areas are hit hardest, rising premiums now affect the entire state. Three main factors drive this trend:
- Fewer insurers are writing new policies, reducing competition and driving up prices, even inland, as displaced coastal policyholders seek coverage elsewhere.
- Higher material and labor costs have increased the cost to rebuild homes, raising insured values and premiums. Longer rebuilding times have also contributed to higher claim costs.
- Home values have seen steady increases, which also increases the amount of coverage necessary to protect you.
What Homeowners Can Actually Do About It
While homeowners can’t control market trends or weather risks, they can take steps to improve their home’s weather resilience, explore available insurance discounts, and make informed decisions about coverage options for their homeowners policy.
Upgrade to a FORTIFIED Roof
A retrofit that meets the Insurance Institute for Business & Home Safety’s FORTIFIED Roof standard can earn you a discount on the wind portion of your premium from many South Carolina carriers. A FORTIFIED roof includes features such as enhanced roof-deck attachment, a sealed roof deck, and reinforced roof edges to better withstand high winds and wind-driven rain.
Apply for the SC Safe Home Mitigation Grant
The South Carolina Department of Insurance’s SC Safe Home Mitigation Grant program helps eligible coastal homeowners pay for qualifying wind-mitigation upgrades, including FORTIFIED roof improvements, impact-rated windows and doors, and hurricane shutters. Grant amounts vary based on the project and household income.
Insurance Journal reports that additional state funding made nearly $9 million available for the program, with more than 600 South Carolinians receiving grants in 2025. Eligible homes must be owner-occupied, single-family residences in designated coastal counties. Homeowners can sign up through the South Carolina Department of Insurance to be notified when the application portal opens.
Review Your Deductibles and Coverage Limits
Increasing your wind or hurricane deductible may lower your premium, but it also increases your out-of-pocket costs after a covered loss. Review your deductible options and coverage limit with an agent so you understand how much coverage you actually need before you need to file a claim on your homeowners policy.
Turn a Frustrating Renewal Into an Informed Decision
South Carolina’s rate environment will not improve this year, and no single step will reverse a 20% increase. However, reviewing your coverage, shopping the market, and taking advantage of available mitigation discounts and grant programs can help mitigate the effects of rising premiums. Contact Brooks, Todd & McNeil for personalized service to review your homeowners insurance policies and get an updated homeowners insurance quote.
FAQ About Rising Homeowners Insurance Rates
Why is homeowners insurance so expensive in South Carolina?
A mix of rising reinsurance costs, an approved coastal wind and hail rate increase, higher rebuild costs, and reduced competition from carriers pulling back on new business has pushed up premiums statewide, not just along the coast.
Will my homeowners insurance keep going up every year?
No one can guarantee otherwise, but the size of future increases relies on factors such as reinsurance markets and storm losses, which shift year to year. Mitigation upgrades and deductible choices are within your control and can offset part of any future increase.
Does a new roof lower my homeowners insurance in South Carolina?
It can. A roof that meets the FORTIFIED standard often qualifies for a discount on the wind portion of your premium. It can also help you retain replacement cost coverage rather than have it shifted to an actual cash value settlement.
What is the SC Safe Home grant program?
It’s a South Carolina Department of Insurance program that helps eligible coastal homeowners pay for wind-resistant roof and home upgrades. Applications are accepted during designated enrollment periods, and homeowners can sign up with the South Carolina Department of Insurance to be notified when the application portal opens.
About the Author
Stephen G. Todd, CPCU CIC is owner, President and CEO of Brooks, Todd & McNeil, bringing more than three decades of experience across underwriting, claims, and agency leadership. He began his career with Travelers Insurance Company, where he held roles in Home Office Finance, National Account Claims litigation, before serving as a commercial lines underwriter with American States Insurance Company. Since joining Brooks, Todd & McNeil in 1991, Stephen has led key operational areas and helped drive innovation, including the development of the insurance industry’s first real-time personal lines comparative rating system. A recognized industry leader, he has served on numerous carrier advisory and remains actively involved in both professional and community organizations.
About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community policies from a variety of providers. To learn more about our products and services, contact us today at (800) 448-4567.