Insurance on the Coast

Island Homeowners Insurance Policies

If you are purchasing an island property, you will need to obtain 3 separate insurance policies: Flood; Wind & Hail; and Homeowners or Dwelling (for rental properties).  If the property is a townhouse or condo, usually the insurance is incorporated into the monthly regime fee and you will be responsible for obtaining interior contents coverage only.

Flood Insurance

Flood Insurance is through the federal government program known as FEMA (Federal Emergency Management Fund).  If you obtain a mortgage on your property it is almost always required by the lender/bank that you have flood insurance. Although flood insurance is a government program, it is purchased through an insurance agent and not directly through the government.

The degree of risk of flooding, age of your home, age of wiring and elevation/height of your home all play factors into the rate you receive from insurance companies.   Most insurance companies will quote the same premium (based on the above factors) as the rates are controlled by FEMA. 

The maximum available flood insurance coverage is $250,000 on the structure/building and up to $100,000 for the contents in the dwelling. Docks are not covered under this insurance. In addition, you can buy excess flood insurance through an insurance company, however the rates tend to be extremely high. If you do not have At the top of this page there is a list of insurance agents in the area you can contact or you can call the National Flood Insurance Program for a referral at 1-800-427-4661.

Please visit FEMA’s website:  www.fema.gov for additional information.

One side note, current flood elevation certificates are usually required in order to obtain Flood Insurance.  So, when purchasing a property be sure to ask the seller if he or she has a current certificate.  If they don’t, you can ask the seller to provide one at their expense as part of your offer.  If you do not request one, then you’ll ultimately be responsible for obtaining and paying for one. 

Wind & Hail

The South Carolina Wind & Hail Underwriting Association usually provides policies for Wind & Hail coverage in Folly Beach. Most commonly independent insurance agents write these policies and the maximum coverage you can obtain is up to $1,000,000 (including contents and loss of use). You can buy excess coverage as well.

Homeowners or Dwelling Insurance

Homeowners (owner occupied) or Dwelling (rental property) Insurance is necessary for coverage in case of fire, liability, theft…. Nationwide, Lloyds of London, and Lexington are a few insurance agencies that are currently writing policies. 

Additional coverage might be necessary for docks or bulkheads. 

 

Insurance coverage amounts, deductibles & policies are constantly changing hence it is essential to get current up-to-date information directly from your insurance provider. I strongly recommend purchasing all 3 policies even if you are not obtaining a mortgage.