Home Insurance Costs Rising in South Carolina Amid Climate Risks

South Carolina is experiencing some of the highest home insurance costs in the U.S., with future increases likely due to elevated climate risks. A recent report forecasts the state's annual home insurance premium to reach $3,370 by 2026, making South Carolina the 10th most expensive state for homeowners insurance, following Illinois and Kansas. Notably, the national average premium is projected to be around $3,057.

The report, developed through a collaboration between the Coalition for an Insurable Future and Mandala Partners, underscores how extreme weather is affecting the U.S. home insurance sector. Since 2021, homeowners insurance premiums have surged by 38%, outpacing inflation and wage growth, a trend fueled by the increase in climate-related disasters.

Since 1980, the frequency of billion-dollar disasters linked to climate has surged, from 16 events between 1980 and 1984 to a projected 112 events for 2020 through 2024. The Coalition for an Insurable Future predicts homeowners insurance premiums could rise by at least 35% by 2050, with significant economic implications. Particularly vulnerable is the Southeast, with South Carolina expected to experience the second-highest premium increase over the next decade, following Louisiana.

By 2035, South Carolina's premium increases could reach up to 203%, potentially exceeding expenditures like groceries and property taxes. Coastal regions may face the steepest hikes. In response, industry stakeholders are encouraged to explore risk management strategies to mitigate climate impacts, even as premium rises linked to climate events remain inevitable.