Home insurance is designed to help you pay for any damage or repair that your home might need after a covered peril, but no one wants to see their South Carolina homeowners insurance rates increase. Not all claims cause an increase in rates, but sometimes your rates increase for reasons that are out of your control.

South Carolina independent insurance agents understand the housing climate in the state and know what causes rates to increase and decrease. They can help you understand how a claim will affect your premium and prepare you for other potential scenarios that could impact your rates. 

What Can Cause My Home Insurance Rates to Increase in South Carolina?

There are several reasons that a home insurance rate may increase, and often they're not related to claims. Usually, this increase is not much, but it can add up over the years. The following events can cause an increase in your insurance premium and many are usually completely out of your hands.

• Major losses from natural disasters: When South Carolina insurance carriers experience a massive amount of losses from natural disasters, it will usually result in an increased premium the following year. Your premium rates are what pays for insurance company payouts, so when those payouts happen at an exponential rate, the companies need to build back up their bank.
• Increase in construction costs:  Home insurance rates are based on the cost to replace your home.  If the cost of wood increases by 2%. or if the economy experiences inflation, home prices usually follow suit.  This means your home is worth more and will cost more to replace.
• The structure of your home needs work: Every once in a while the insurance company will come and inspect your home. If they discover that key parts of your structure are in need of repair, it could result in a premium increase. This includes the roof, foundation and exterior walls. If the structure of your home is deteriorating, you're more likely to file a claim.
• You added something risky to your home: Pools, trampolines, and treehouses are all fun things to have in your backyard, but they increase the risk of injury on your property.
• Your credit score declined: If you have a drastic drop in your credit score, your insurance company may believe that you won't have the means to pay your insurance premium on time. 
• Your insurance score declined: Your insurance score is different from your credit score, as it usually combines your credit score, your claim history, and whether your home has specific safety features. The lower your insurance score, the higher your premiums.

Will My Homeowners Insurance Increase after Filing a Claim in South Carolina?

In most cases, your homeowners insurance will not increase after a single claim. According to insurance expert Jeffrey Green, "If you or your property have a history of claims, then your renewal premium may increase, but generally won't increase because of a single claim." 

Green explains that insurance companies track claims using the Comprehensive Loss Underwriting Exchange (C.L.U.E.) database, which allows underwriters to see your claim history when writing or rating your policy. The more claims you have, the more likely you are to get an increase in rates or pay a higher rate if you start with a new company.

What Claims in South Carolina Will Increase My Current Insurance Rate?

The biggest threat to South Carolina homeowners insurance rates are severe weather events like severe storms, winter storms, and droughts. Every time the state experiences a tornado, the damage has to be paid out by insurance companies, which ultimately results in raised rates. For the record, South Carolina experiences 27 tornadoes a year. 

Of course, not filing a claim when your house is damaged by a weather event isn't always an option. That's why the state offers catastrophe savings accounts. These accounts can be established at a state or federally chartered bank and provide residents with a means to prepare for the financial impact of a catastrophic event. This can also save on your income taxes because any money placed in the account, plus any interest earned, are not subject to state income tax. 

Top 5 risks for homeowners in South Carolina

Will My Rates Continues to Increase with Each Claim I File in South Carolina?

There is no rule that says that your home insurance premium will increase every time you file a claim. Usually, your rates will not increase with just a single claim. If you have to file multiple claims in the same year, there is a good chance that your rates will increase the next time your policy is reviewed. This is because the underwriters are looking at how risky of a homeowner you were the previous year, and they will see the numerous claims made. 

What Won't My Homeowners Insurance Cover in South Carolina?

If you're living in South Carolina, it's crucial you understand that your standard home insurance policy does not cover flooding. Flood insurance has to be purchased separately in South Carolina, as does earthquake insurance. If you don't purchase these extra coverages and you experience any damage related to these two events, you won't be covered. The following scenarios are also not typically covered under your standard homeowners policy.

• General wear and tear
• Cracked driveways
• Insect damage
• Paint fading from sunlight
• Removing a tree from your property

The last thing you want to do is get caught with a claim that you thought would be covered, but it's not. Your independent insurance agent can help you understand what is covered and what's not and how to add protection for specific risks.

How Can a South Carolina Independent Insurance Agent Help Me?

South Carolina's location and history of natural disasters make it a state where residents could see an unexpected increase in home insurance rates. No one likes to be surprised by their insurance premium price, which is why a South Carolina independent insurance agent can help you stay on top of your home insurance policy. Whether you're shopping a new policy or looking for ways to save on your existing policy, they work with multiple carriers to find you the best home insurance coverage. They're not just there in the beginning either. Should you have to file a claim, they can help you through the process and work with you to understand how the claim might affect your policy rates.