What First-Time South Carolina Homebuyers Should Know Before Insuring a New Home

Buying your first home is exciting, but between mortgage approvals, inspections, appraisals, and closing documents, homeowners’ insurance can sometimes feel like just another item on the checklist.

It shouldn't.

Your home may be one of the largest investments you'll ever make, and the right homeowners’ insurance can help protect that investment when the unexpected happens. For first-time homebuyers in South Carolina, there are also some important local factors to consider, from severe thunderstorms and hurricanes to flooding and the age and condition of the home you're purchasing.

Before you close on your new home, here are some things you should know about homeowners’ insurance in South Carolina.

1. Don't Wait Until the Last Minute to Shop for Homeowners Insurance

If you're financing your home, your mortgage lender will generally require homeowners’ insurance before you can close. That doesn't mean you should wait until closing week to start looking for coverage.

Getting an insurance quote earlier in the homebuying process can help you understand what the property will cost to insure and identify potential issues that could make coverage more expensive or difficult to obtain.

The age and condition of the roof, electrical system, plumbing, heating system, and other features of an older home can affect insurance eligibility and premiums. Even two similarly priced homes in the same South Carolina community can have very different insurance costs.

If you're considering a home in Columbia, Lexington, Irmo, Chapin, Blythewood, or elsewhere in the Midlands, talking with an independent insurance agent before closing can help prevent surprises.

2. Your Home's Purchase Price Isn't the Same as Its Replacement Cost

One of the most important concepts for first-time homeowners to understand is replacement cost.

You may purchase a home for $350,000, but that doesn't necessarily mean you should insure the structure for $350,000. Your purchase price includes factors such as the land, location, neighborhood, and current real estate market.

Your dwelling coverage should instead reflect what it would cost to rebuild the home after a covered loss.

Construction costs, materials, labor, square footage, and the home's features all influence that number. The South Carolina Department of Insurance recommends purchasing enough coverage to rebuild your home rather than simply basing coverage on its market value.

3. Understand What Your Homeowners Policy Actually Covers

A typical homeowners policy provides several different types of protection, including:

• Dwelling coverage to repair or rebuild the home's structure after a covered loss.


• Other structures coverage for structures such as detached garages, sheds, and fences.


• Personal property coverage for furniture, electronics, clothing, appliances, and other belongings.


• Liability coverage if you're legally responsible for someone being injured or their property being damaged.


• Additional living expenses that may help pay for temporary housing and other costs if a covered loss makes your home uninhabitable.

The important phrase is "covered loss." Homeowners insurance doesn't cover every type of damage. Before choosing coverage, make sure you understand your policy's limits, deductibles, exclusions, and endorsements.

4. South Carolina Homeowners Need to Think About Wind and Storm Damage

Living in South Carolina means severe weather needs to be part of your insurance conversation.

You don't have to live in Charleston or Myrtle Beach to experience the effects of a hurricane or tropical storm. Hurricanes and tropical systems can bring heavy rain, damaging winds, tornadoes, and falling trees well into the Midlands.

Ask your insurance agent how your policy handles wind and hail damage and whether a separate wind/hail or named-storm deductible applies.

A deductible based on a percentage of your home's insured value can result in a significantly different out-of-pocket expense than a standard flat-dollar deductible. Knowing how your deductible works before a storm occurs can help you avoid an unpleasant surprise later.

5. Homeowners Insurance Typically Does Not Cover Flooding

This is especially important for South Carolina homebuyers.

A standard homeowners insurance policy generally does not cover flood damage. Flood insurance is separate coverage.

And don't assume you don't need to think about flooding simply because the home isn't located in a high-risk flood zone. Heavy rainfall, tropical systems, overflowing waterways, drainage problems, and rapidly accumulating surface water can cause flooding outside traditionally recognized high-risk areas.

South Carolina's history has shown that significant flooding isn't limited to coastal communities.

Before purchasing a home, learn about the property's flood risk and talk with your insurance agent about whether flood insurance makes sense for you.

6. The Home's Roof Can Matter More Than You Think

That beautiful house may look move-in ready, but what's happening on the roof?

Insurance companies consider numerous characteristics of a home when determining eligibility and pricing, and the age and condition of an older home's roof can be particularly important.

Before buying, find out:

• How old is the roof?


• What type of roofing material was used?


• Has the roof had previous damage?


• When was it last inspected?


• Are there signs of leaks or deterioration?


• Has the seller filed previous claims involving the roof?

A home inspection is already an important part of buying a house. Looking at the inspection through an insurance lens can give you another perspective on the property's potential costs.

7. Your Deductible Matters

The lowest insurance premium isn't necessarily the best deal.

A higher deductible can reduce your premium, but it also means you'll have to pay more out of pocket when you have a covered claim.

For example, saving a few dollars each month may not feel worthwhile if it leaves you with a deductible that would be difficult to afford after a major storm.

As a first-time homeowner, consider how much you could comfortably pay out of pocket if something happened tomorrow. Then compare coverage options accordingly.

8. Take an Inventory of Your Belongings

Once you move in, create a home inventory.

Take photos or video of each room and document major belongings such as televisions, computers, furniture, appliances, jewelry, tools, sporting equipment, and other valuables. Keep receipts for major purchases when possible.

A home inventory can make it much easier to document what you owned if you ever experience a theft, fire, or other major covered loss.

Also ask your agent about coverage limits for valuable items. Jewelry, collectibles, artwork, and certain other property may have specific policy limits and could require additional coverage.

9. Bundling Home and Auto Insurance May Save You Money

Buying your first home is also a good opportunity to review your other insurance policies.

Many insurance companies offer discounts when you purchase both homeowners and auto insurance from the same carrier. Other factors, including security systems, certain home improvements, and your selected deductible, may also affect your premium.

Rather than automatically moving your existing auto policy to whichever company insures your new home, compare your options. The best combination of home and auto coverage may be different from what you currently have.

10. Compare More Than Just the Price

It's easy to focus on the monthly or annual premium, especially when you're already thinking about mortgage payments, closing costs, utilities, repairs, and moving expenses.

But you shouldn't choose insurance based on price alone.

When comparing South Carolina homeowners’ insurance, look at the coverage limits, deductibles, exclusions, available endorsements, carrier, and overall protection you're receiving.

Two quotes that look similar on the surface can provide very different levels of coverage.

An Independent Insurance Agent Can Help You Compare Your Options

One advantage of working with an independent insurance agency is access to multiple insurance carriers, rather than a quote from just one company.

Keisler Insurance Group works with more than 20 insurance companies, so we can compare options and help South Carolina homeowners find coverage that fits their home, needs, and budget.

For a first-time homebuyer, that can make the process much simpler. Instead of trying to understand multiple policies on your own, you can have a local insurance professional explain your options and help you determine what coverage makes sense.

Buying Your First Home in South Carolina? Let's Talk Insurance.

Before you get to the closing table, make sure protecting your new home is part of the plan.

Keisler Insurance Group helps homeowners throughout Columbia and communities across South Carolina compare homeowners’ insurance options and understand their coverage. As an independent insurance agency, we'll shop multiple carriers to help you find the right combination of coverage and value.