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Landlord Insurance South Carolina
Last updated: May 30, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Landlord insurance in South Carolina is a specialized coverage plan designed for property owners who lease out homes, condos, or commercial buildings anywhere in the Palmetto State. Whether you own a single rental in Charleston, manage a portfolio in Columbia, or have beachside properties along the Grand Strand, landlord insurance South Carolina is essential for protecting your investment and managing risks unique to this diverse region.
Unlike standard homeowners insurance, landlord insurance in South Carolina is engineered for the distinct exposures that rental property owners face, from hurricane damage along the coast to tenant liability and claims common in rapidly growing cities such as Greenville, Myrtle Beach, or Rock Hill.
South Carolina landlords have seen insurance rates trend upward in recent years—impacted by storm frequency, coastal claims, and rising construction costs. Through our in-depth analysis of landlord insurance South Carolina policies, we’ve found many property owners pay up to 25% more than necessary, often because they lack access to expert agents familiar with the nuances of landlord coverage in South Carolina’s market.
That’s why OfferMarket Insurance created a platform specifically tailored for South Carolina landlords. We instantly compare quotes from over 40 insurance providers, and our local insurance specialists thoroughly review each offer to ensure you get outstanding protection at the lowest possible price—helping landlords from Greenville to Hilton Head save thousands every year.
What Does Landlord Insurance in South Carolina Cover?
A robust landlord insurance policy in South Carolina usually protects against:
🏠 Property damage from hurricanes, tropical storms, fire, hail, and vandalism
⚖️ Liability claims if someone is injured on your South Carolina rental
💸 Loss of rental income if a covered event forces your property to be vacated
🌊 Flood insurance (usually required separately if your property is in a flood zone)
Property Insurance
South Carolina landlords must be vigilant against coastal hurricanes, inland tornadoes, hailstorms, and the risk of fire or vandalism. The property insurance portion of your landlord insurance South Carolina policy helps cover these threats and may also pay for temporary housing for tenants if repairs are needed.
Property insurance in South Carolina typically comes in three main coverage levels—Basic, Broad, and Special—each covering specific “perils” (risks):
Basic Form Perils
This is the most cost-effective property insurance for South Carolina landlords, covering the core perils, such as:
🔥 Fire
🌩️ Lightning
💥 Internal explosion
Extended Coverage (EC) Perils
In South Carolina, you can add extended coverage perils to your policy, often remembered by the “WHARVES” mnemonic:
🌬️ Windstorm (including hurricanes and tornadoes, especially in the Lowcountry and Midlands)
🦹♂️ Civil commotion
🔥 Smoke damage (not directly from fire, but from a sudden incident)
🌨️ Hail (frequent in South Carolina’s spring and summer storms)
✈️ Aircraft
🚗 Vehicle impact
💥 Explosion
❗ Riot
For protection against property crime, the “V&MM” acronym covers:
🏚️ Vandalism
🦹♂️ Malicious mischief
Broad Form Perils
South Carolina insurance professionals often use the “BIG AFFECT” mnemonic to describe the expanded risks covered by broad form policies:
🥷 Burglary damage
🧊 Ice, sleet, snow (rare but possible in Upstate winters)
🪟 Glass breakage
🚰 Accidental water or steam discharge
🧊 Freezing of plumbing (especially in colder Upstate winters)
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder
Special Form Peril
The most comprehensive landlord insurance in South Carolina is called “Special Form,” “open peril,” or “DP-3”—often chosen for single-family homes and higher-value rentals. This covers all risks of direct physical loss unless specifically excluded, so it’s vital to review your policy’s exclusions. Common exclusions in South Carolina include:
🌊 Flooding (requires a separate flood policy, especially in flood-prone zones like Charleston and the Pee Dee region)
🌎 Earthquake (rare in South Carolina but possible, especially near the Midlands)
🤡 Intentional acts
⚠️ Building code upgrades
🔌 Off-premises power failure
🇺🇸 Government action
General Liability Insurance
General liability insurance in South Carolina is crucial for landlords, protecting you from claims of bodily injury or property damage involving tenants, guests, or contractors at your rental. Typical coverage limits range from $100,000 to $1,000,000 per incident.
For example, if a tenant or visitor slips on a rain-soaked porch in your Charleston duplex and files a lawsuit, your landlord insurance South Carolina policy’s liability protection helps pay for medical bills and legal expenses.
Business Interruption Insurance (Loss of Rent)
South Carolina landlords risk losing rental income if a covered event, such as a hurricane or fire, forces tenants out. Business interruption insurance, included in many landlord insurance South Carolina policies, replaces lost rent—keeping your cash flow steady during repairs.
This coverage is usually very affordable in South Carolina, averaging about $1 for every $1,000 in yearly rental income.
Flood Insurance
Given South Carolina’s vulnerability to flooding—especially along the coast and rivers like the Savannah and Santee—flood insurance is often required if your property is in a FEMA-mapped flood zone.
Most South Carolina lenders require flood insurance coverage up to $250,000, and this is separate from your standard landlord insurance South Carolina policy. Flood insurance is commonly purchased through the National Flood Insurance Program (NFIP). You can check your property’s risk using FEMA’s Flood Map Service Center.
Landlord Insurance for DSCR Loans in South Carolina
If you’re financing a rental property in South Carolina using a Debt Service Coverage Ratio (DSCR) loan, it’s important to know the insurance guidelines that lenders require. Most DSCR loan providers in South Carolina expect landlords to carry landlord insurance policies that meet specific criteria to protect both the property and the lender’s interests.
Since insurance premiums impact your DSCR calculation, it’s vital to find landlord insurance South Carolina policies that are both thorough and budget-friendly. Here are some of the most common DSCR insurance requirements for South Carolina rental properties:
| DSCR Loan Insurance Requirement | Required? |
|---|---|
| Property Insurance | Yes |
| General Liability Insurance | Yes |
| Business Interruption Insurance | Yes |
| Mortgagee Clause | Yes |
| Lender as Additional Insured | Sometimes |
The OfferMarket Insurance platform helps South Carolina landlords navigate DSCR loan insurance needs, providing quotes designed to align with lender expectations while minimizing overall cost.
How Much Does Landlord Insurance Cost in South Carolina?
The price of landlord insurance in South Carolina depends on a range of factors, from your property’s location to the level of coverage you select.
Location in South Carolina
Insurers use hyper-local data to set rates. For example, coastal properties in Charleston, Hilton Head, or Myrtle Beach generally face higher premiums due to hurricane and flood exposure, compared to homes in inland areas like Spartanburg or Rock Hill. Local rebuilding costs and labor rates also play a role in determining premiums.
Property Insurance Type
South Carolina landlords can choose from Basic, Broad, and Special Form coverage. Special Form is the most inclusive and is generally favored for rental homes, though it comes at a higher price.
| Property Insurance Type | Cost |
|---|---|
| Basic Form | $ |
| Basic Form + Extended Coverage | $$ |
| Broad Form | $$ |
| Special Form | $$$$ |
Dwelling Coverage Amount
The amount you insure your South Carolina rental for—the dwelling coverage limit—is the single biggest factor in your premium. It’s highly recommended to insure your property for its full replacement cost (RCV) to avoid penalties and gaps in coverage, especially with rising construction costs in South Carolina.
| Dwelling Coverage Type | Cost |
|---|---|
| Actual Cash Value | $ |
| Functional Replacement Cost Value | $$ |
| Replacement Cost Value | $$$ |
Deductible
Selecting a higher deductible can lower your South Carolina landlord insurance premium. Many landlords in the state opt for deductibles of $5,000 or more to keep annual costs down.
| Deductible | Premium Cost |
|---|---|
| $1,000 | $$$$ |
| $2,500 | $$$$ |
| $5,000 | $$$ |
| $7,500 | $$ |
| $10,000 | $ |
Claim Frequency and Severity
South Carolina insurers factor in both your personal claim record and the property’s claims history. Multiple or severe claims—such as water damage from hurricanes or windstorms, or repeated break-ins in certain neighborhoods—can drive up rates or lead to stricter policy terms.
Crime Score Impact
Crime rates, especially in metro areas like Columbia or North Charleston, can impact your landlord insurance premium. High-crime neighborhoods often mean greater risks of theft, vandalism, or liability claims, prompting insurers to raise premiums or set more restrictive coverage terms.
Investing in security upgrades, such as alarm systems or professional property management, can help lower your insurance costs—even in higher-risk areas.
Property Condition and Maintenance
Well-cared-for rental properties in South Carolina’s humid climate tend to qualify for lower insurance rates. Keeping your building’s roof, plumbing, and HVAC systems up to date is crucial, especially with the region’s risk of hurricane damage, high winds, and humidity-driven mold.
Older structures or homes with deferred maintenance may see higher premiums, but documenting regular upgrades and preventative work can improve your insurer’s view of your property.
How to Protect Your Rental Property in South Carolina
While landlord insurance South Carolina is a crucial piece of your risk management puzzle, active property care and tenant education can reduce losses and claims:
Tenant Screening
From Charleston’s busy rental market to college towns like Clemson, thorough screening helps protect your investment. Check credit and background for all adult applicants. Establish clear standards for minimum credit scores and any automatic disqualifiers. If you make exceptions, ask for additional deposits or a co-signer with solid credit.
Regular Maintenance
South Carolina’s subtropical weather calls for vigilance. Inspect properties at least quarterly to spot leaks, roofing issues, or signs of mold—especially during hurricane season or after severe storms. Maintain detailed repair logs, which may help you qualify for insurance discounts.
Tenant Maintenance Education
Teach tenants basic preventive maintenance, like changing HVAC filters, locating the main water shutoff, or running the heat during rare winter freezes to prevent burst pipes. Educating tenants on small tasks can prevent larger insurance claims.
DP-3 Insurance in South Carolina
DP-3, or Special Form, policies are considered the gold standard for South Carolina rental properties. These policies pay out on a replacement cost basis and cover almost all sources of direct physical loss, except for certain exclusions written into your policy.
What is Coinsurance?
Coinsurance clauses in South Carolina landlord insurance penalize property owners who underinsure their buildings—typically, if your policy limit is less than 80% of replacement value. Underinsuring means you may have to pay part of any claim out of pocket, in addition to your deductible.
Coinsurance formula
(Insurance Carried ÷ Insurance Required) × Loss = Claim Payment – Deductible
If your South Carolina rental’s replacement cost is $300,000, but you insure it for only $150,000 and have a $5,000 deductible, a $60,000 loss would pay out as:
($150,000 ÷ $300,000) × $60,000 = $30,000 - $5,000 = $25,000 from the insurer.
You’re responsible for the remaining $35,000, which is why insuring for the full replacement cost is so important.
Landlord Insurance Markets in South Carolina
Whether your rental property is in the historic districts of Charleston, the growing suburbs of Greenville, or coastal communities like Beaufort, we connect you with landlord insurance solutions designed for South Carolina’s distinct risks.
Best Landlord Insurance in South Carolina
South Carolina landlords face a crowded insurance marketplace. Our recommendation is to look for a policy that offers:
Property insurance tailored for South Carolina’s storms and coastal risks
General liability coverage protecting you from tenant and guest injuries
Business interruption insurance to secure your rental cash flow
Flood coverage if your rental is near water or in a FEMA flood zone
Working with an insurance agency that specializes in South Carolina landlord insurance and offers a wide range of carriers ensures you receive the best value and protection. Start your landlord insurance quote with OfferMarket Insurance now!
Landlord Insurance Guidelines for South Carolina DSCR Loans
Below are the recommended guidelines for landlord insurance in South Carolina to comply with DSCR lender requirements:
Property Insurance
| Coverage Type | Requirement |
|---|---|
| Property Insurance | Mandatory, AM Best Rating A- VIII or higher, 1-year term |
| Limits | 80% of replacement cost or loan amount, whichever is higher |
| Deductible | $5,000 |
| Policy Type | Special Form (Dwelling Fire or Commercial Property) |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
General Liability Insurance
| General Liability Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $500,000 per occurrence, $1,000,000 aggregate |
| Deductible | $1,000 |
| Coverage | Occurrence basis |
| Cancellation Notice | 30 days |
| Lender’s Designation | Additional Insured |
Business Interruption Insurance
| Business Interruption Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | One year of gross rental revenue |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Flood Insurance
| Flood Insurance | Requirement |
|---|---|
| Mandatory if in flood zone | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $250,000 or loan balance, whichever is greater |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Additional Details for South Carolina Landlord Insurance
| Detail | Information |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos and PUDs in SC | Blanket policies allowed if individual units are covered. Associations must carry all-risk coverage for common areas and equipment at 100% replacement cost. |
| Instructions | Use ACORD forms for compliance. Submit insurance certificates, invoices, or paid receipts at least 24 hours before closing. Final policy documents are required within 60 days of closing. If the property becomes vacant, notify your carrier and obtain a vacancy permit if needed. |
Frequently Asked Questions About Landlord Insurance in South Carolina
How does OfferMarket Insurance work for South Carolina landlords?
OfferMarket Insurance is a dedicated platform built for South Carolina landlords. We compare quotes from a wide range of carriers, ensuring every policy meets your property’s needs and lender requirements. Our South Carolina insurance experts carefully review each quote so you receive the best coverage at a competitive price.
Do I need a Builders Risk Policy in South Carolina?
Builders Risk coverage is not part of standard landlord insurance South Carolina policies. You only need it if you’re undergoing major renovations, rehabbing, or constructing a new rental. Builders Risk protects your property and building materials during these projects.
Can I use Functional Replacement Cost instead of Replacement Cost Value for my South Carolina rental?
It depends on your lender’s guidelines in South Carolina. Some lenders allow Functional Replacement Cost, especially for older homes, but others may require Replacement Cost Value as stated in your appraisal.
Why does my South Carolina lender require Additional Insured status?
Certain DSCR lenders in South Carolina need to be listed as Additional Insured for liability coverage, while the Mortgagee Clause secures property rights. Ensuring both are included on your landlord insurance policy helps meet your lender’s expectations.
Can I use my preferred insurance agent for landlord insurance in South Carolina?
Yes, as long as your agent is able to provide landlord insurance South Carolina policies that meet all coverage requirements. Agents specializing in personal lines may not understand the complexities of landlord insurance in South Carolina, so working with experienced professionals is recommended.
Can I pay for landlord insurance on the HUD-1 or ALTA settlement statement in South Carolina?
DSCR loans in South Carolina often require that landlord insurance premiums be paid at closing, either through the HUD-1/ALTA settlement statement or directly to your insurance provider before closing.
Can I escrow my landlord insurance premium in South Carolina?
Many South Carolina lenders require that landlord insurance premiums be escrowed as part of your monthly mortgage payment to guarantee there are no lapses in coverage.
Can I get a refund if I cancel my South Carolina landlord insurance policy?
Yes. South Carolina insurers must refund any unearned premiums on a pro-rated basis if you cancel your policy. Be sure to have new coverage in place before canceling to prevent any gaps in insurance.
What is an AM Best Rating?
AM Best is a financial strength rating service for insurance companies. In South Carolina, select carriers rated A- VIII or higher for landlord insurance to ensure reliable claims payment and coverage stability.
What is Builders Risk Insurance in South Carolina?
Builders Risk covers South Carolina rental properties and materials while construction or renovation is in progress. It protects against fire, wind, theft, and vandalism during building or major remodels, and coverage usually ends when work is completed or the property is leased.
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