Does Raising My Home Help Lower My Insurance Premium?

By Brad Davis, CIC (July 7, 2026)
Davis Insurance Associates – Myrtle Beach, South Carolina

Many homeowners in Myrtle Beach, North Myrtle Beach, Little River, and other coastal areas of South Carolina ask us a smart question:

“If my home is built up, raised, or on stilts, will that help lower my insurance premium?”

The answer is: maybe – but it usually helps flood insurance more than home insurance.

At Davis Insurance Associates, we do not typically see a home being raised or built on stilts make a major difference on the standard home insurance premium. Home insurance companies are usually more focused on things like the age of the home, roof age, construction type, distance to the coast, replacement cost, wind/hail exposure, claims history, and deductible options.

However, when it comes to flood insurance, elevation can matter.

Raised Homes and Home Insurance

Your home insurance policy is generally designed to cover things like fire, wind, hail, theft, liability, and certain types of water damage. It usually does not cover flooding from rising water, storm surge, tidal water, or heavy rain that enters from outside at ground level.

Because of that, a home being elevated does not create a noticeable discount on the home insurance side, at least from what we commonly see. A house may be built high off the ground and still have the same wind, fire, roof, liability, and replacement cost concerns as another home.

That does not mean elevation is useless. A raised home may still be a better risk in some real-world situations. But from what we commonly see, it is not usually one of the pricing factors for standard homeowners insurance.

An important side note: a home raised on stilts, pilings, piers, or columns can cost more to build or rebuild. Since home insurance is often based in part on the estimated replacement cost of the structure, a raised home may sometimes need a higher dwelling coverage amount, which can increase the premium.

Raised Homes and Flood Insurance

Flood insurance is different.

Flood insurance companies often care about how likely floodwater is to reach the living area of the home. That is where elevation can help.

If a home is built higher above the ground, raised on pilings, or elevated above the expected flood level, it may be viewed as less likely to suffer major flood damage. This can sometimes help reduce the flood insurance premium.

Some private flood insurance companies ask questions such as:

• How many steps are there to the front door?
• Is the home on a slab, crawlspace, stilts, piers, piles, or pilings?
• Is the first floor living area elevated?
• Is there an enclosed area below the home?
• Is the ground-level area used for parking, storage, or finished living space?
• Has the home had prior flood claims?

Those details can affect how a private flood company views the risk.

Why “How Many Steps to the Front Door?” Matters

It may seem like a strange question, but some private flood insurance companies ask how many steps lead up to the front door because it gives them a quick idea of how elevated the living area may be.

A home with several steps up to the main floor may be less exposed to shallow flooding than a home built directly on a slab at ground level. That does not guarantee a lower rate, but it can help the flood company better understand the property.

In coastal South Carolina, we often see homes built up for practical reasons, especially near marshes, waterways, and lower-lying areas. For flood insurance, that extra height can sometimes make a meaningful difference.

Homes on Stilts, Piers, Piles, or Pilings

Homes built on stilts, piers, piles, or pilings may have an advantage for flood insurance because the living space is elevated above the ground.

However, the details matter.

A raised beach-style home with open parking underneath may be treated differently than a raised home with a fully enclosed room, finished space, or storage area at ground level.

In many cases, the benefit of being elevated is strongest when the area below the home is open or used only for parking, access, or limited storage. If the ground-level area is enclosed or finished, it may reduce the benefit or create additional underwriting concerns.

The Problem With Enclosed Rooms Below a Raised Home

One of the biggest things to watch for is an enclosed area below the elevated living space.

For example, a home may be built on pilings, but the owner later adds a downstairs room, bathroom, workshop, storage area, or enclosed entertainment space. From an insurance standpoint, that can change how the risk is viewed.

Flood insurance companies may ask whether the lower level is:

• Open
• Partially enclosed
• Fully enclosed
• Finished
• Heated or cooled
• Used as living space
• Used only for parking, storage, or access

A fully enclosed or finished ground-level area can be more likely to suffer flood damage. It may also affect eligibility, pricing, or how much coverage is available for that area.

This is why two homes that both appear to be “raised” can receive very different flood insurance quotes.

What About an Elevation Certificate?

An elevation certificate (link to FEMA definition for Elevation Certificate) is a document that provides detailed information about a building’s elevation, foundation type, flood zone, and lowest floor.

Years ago, many people associated elevation certificates with getting an NFIP flood insurance quote. That has changed.

Under FEMA’s current Risk Rating 2.0 pricing method, an elevation certificate is not required for most NFIP flood insurance policies. FEMA typically uses its own data and rating tools to estimate property-specific flood risk, including first-floor height and other building characteristics.

However, an elevation certificate can still be very helpful.

If your actual elevation is higher than what FEMA’s model assumes, submitting an elevation certificate may help lower your flood insurance premium. It can also be useful when a home has an unusual foundation, unique topography, a raised design, or other site-specific details that may not be fully captured by generalized data.

In other words, an elevation certificate is not always required, but it can still matter – especially if it helps prove that your living area is higher and less exposed to flooding than the model assumes.

If you already have an elevation certificate, it is usually worth sharing it when shopping for flood insurance.

Private Flood Insurance vs. NFIP Flood Insurance

There are two main ways homeowners commonly buy flood insurance:

NFIP flood insurance, which is backed by the National Flood Insurance Program through FEMA.

Private flood insurance, which is offered by private insurance companies.

>Get a real Flood Insurance Quote from one of our private flood insurance partners, Neptune, in under 5 minutes.<

Both options may consider property details, but they may not rate the home the exact same way. One company may give more credit for a raised structure than another. One private flood company may ask how many steps go to the front door, while another may rely on mapping, elevation data, prior claims, or other property information.

This is why it can be helpful to compare both NFIP and private flood insurance options when available.

Does Raising a Home Always Lower Flood Insurance?

No. Raising a home does not automatically guarantee a lower flood insurance premium.

Flood insurance pricing can depend on many things, including:

• Flood zone
• Distance to water
• Elevation
• Foundation type
• First-floor height
• Enclosures below the home
• Replacement cost
• Prior flood claims
• Coverage limits
• Deductibles
• The flood insurance company’s rating model

A raised home may still have a higher premium if it is very close to the ocean, waterway, marsh, or another flood source. A home with an enclosed lower level may also rate differently than a similar home with open space underneath.

Should I Raise My Home Just to Save on Insurance?

Raising a home can be very expensive, so it should not be viewed only as an insurance savings decision. It may help reduce flood risk and may help with flood insurance pricing, but the cost of elevating a home can be significant.

Before making a major decision like raising a home, it is smart to talk with:

• A qualified contractor
• Your local floodplain manager or building department
• Your mortgage company, if applicable
• Your insurance agent
• A flood insurance specialist

You should also compare potential insurance savings with the cost of the project.

What If I Am Buying a Raised Home?

If you are buying a raised home near the coast, do not assume the flood insurance will automatically be cheap.

Before closing, try to gather:

• The current flood insurance policy, if available
• The elevation certificate, if available
• Photos of the home and foundation
• Details about any enclosed area below the home
• Information about prior flood claims
• The flood zone
• The replacement cost or estimated rebuild value

This information can help your insurance agent shop the flood insurance more accurately.

The Bottom Line

Having your home built up, raised, or on stilts may not make a difference on your standard home insurance premium. But it can sometimes help with flood insurance, especially if the living area is elevated and the area below the home is open or limited to parking, access, or storage.

The key is that every home is different.

A raised home with open space underneath may be viewed more favorably than a raised home with a finished room or enclosed area at ground level. Private flood insurance companies may also ask specific questions, such as how many steps lead to the front door, because elevation can affect the risk.

If you own or are buying a home in Myrtle Beach, North Myrtle Beach, Little River, Conway, Murrells Inlet, or anywhere along the South Carolina coast, Davis Insurance Associates can help you compare home insurance and flood insurance options.

Disclaimer: This article is for general educational purposes only and is not a guarantee of coverage, pricing, eligibility, or insurance savings. Insurance rates and underwriting guidelines vary by company, policy type, property details, location, flood zone, construction, elevation, foundation type, prior claims, and other factors. Flood insurance and home insurance are separate policies, and coverage can differ between NFIP and private flood insurance options. Always review your specific policy and speak with a licensed insurance agent about your situation.