Three Important Things You Need to Know About Home, Auto, and Flood Insurance When Moving to South Carolina from the Northeast
And Potentially Save Thousands on Your Homeowners, Auto, and Flood Insurance!
December 2, 2024, by Brad Davis, CIC
Are you planning to move to South Carolina from parts of the Northeast such as New York, New Jersey, or Pennsylvania? Before you pack up and head south, there are few critical insurance mistakes you’ll want to avoid. These mistakes could be costing you thousands of dollars a year in unnecessary home, flood, and auto insurance premiums (or deductibles for claims).
We’ve seen many families move to the South, lured by the warm weather, the laid-back beach lifestyle, and, of course, lower taxes and more affordable housing. And while the Carolinas have become a popular relocation destination, there are some important things you should know about insurance that could save you a lot of money — and headaches — down the road.
At Davis Insurance Associates, we’ve helped countless people make the transition from the Northeast to the Grand Strand, and we know the local insurance market inside and out. If you're moving to South Carolina, keep reading to make sure you’re not making these costly mistakes.
1. Don’t Assume Your Current Insurance Company Can Help You
One of the biggest mistakes we see people make is assuming that their current insurance provider from up north will seamlessly transition to covering them in the Carolinas. Unfortunately, that’s not always the case. Many of the national insurance companies that dominate the Northeast — like State Farm, USAA, Nationwide, and Allstate — can’t write home, flood, or auto insurance in certain areas of South Carolina, particularly coastal regions.
Potential Issue: Not only can some national companies not provide coverage in South Carolina, but if they can, their rates might be way higher than those from insurance carriers that specialize in the region. The risk of hurricanes, coastal flooding, and other weather-related issues means that many national carriers either don’t cover coastal areas or charge astronomical premiums for the same coverage.
A Davis Insurance Associates Example: We recently helped a homeowner in Myrtle Beach, South Carolina, who first obtained insurance with the same carrier they had up north. They thought after being a loyal client for several years that the company would offer them the best coverage and premium available. We reviewed the coverage and found a home insurance policy with one that we represent and were able to save our client about $2,500 a year with better coverage. We also provided Flood Insurance (which they did not have before) and still saved them that much on the premium.
Pro Tip: Don't assume your out-of-state insurance company can or will offer the best deal. Work with a local independent agent who knows the market and the insurance companies that are well-versed in covering homes and cars in the Carolinas, especially if you're buying near the coast in places like Myrtle Beach, Charleston, or Conway.
*And don't wait until the last minute to start shopping for insurance!
Curious what Home Insurance costs in Myrtle Beach (How Much is Home Insurance in Myrtle Beach, SC) or Conway (How Much is Home Insurance in Conway, SC)?
2. Know Your Deductibles — Especially for Wind and Hail
When you’re shopping for homeowners insurance, it’s critical to understand your deductibles, especially when it comes to wind, hail, or hurricane damage. Coastal areas like Myrtle Beach and surrounding areas are particularly vulnerable to storms, and many insurance policies have separate deductibles for these specific types of damage.
Potential Issue: Often out-of-state buyers don’t realize that wind and hail damage come with higher deductibles in coastal areas. These are often percentage-based deductibles, typically 2% or 5% of your home’s value. That means, if your home is valued at $500,000, your deductible for a wind or hurricane-related claim could be as high as $25,000 if you have a 5% deductible.
A Davis Insurance Associates Example: Let’s say you are buying a 3,000 square-foot home in Carolina Forest (Myrtle Beach area), which has a replacement cost of around $600,000. If your wind deductible is 2%, you’ll be responsible for the first $12,000 in wind damage before your coverage kicks in. But, if you accidentally sign up for a policy with a 5% deductible, you could be on the hook for $30,000. That’s a huge difference!
Pro Tip: Before you sign on the dotted line, make sure you understand the wind and hail deductibles on your policy. Not all insurance policies are created equal, and we recommend working with a local agent who can help you navigate these specific details to avoid nasty surprises after a storm.
3. Private Flood Insurance Can Save You Big
If you’re moving to South Carolina, especially if you're near the coast or in a flood-prone area, flood insurance is a basically a must. But here's the thing: you don’t have to go with government-backed FEMA flood insurance. Over the past few years, private flood insurance companies have entered the market, offering better coverage at a lower price.
Potential Issue: Many Northeasterners are used to dealing with FEMA's National Flood Insurance Program (NFIP), which is what most people in high-risk flood zones have been required to use. While FEMA flood insurance is reliable, it’s often not the best value, and premiums can be expensive — especially in flood-prone areas like Charleston, Myrtle Beach, and Conway. But private flood insurance can offer lower premiums, better coverage, and more flexibility.
A Davis Insurance Associates Example: A family buying an older home in Myrtle Beach found their FEMA flood quote to be above $4,500 annually. After we shopped our private flood insurance markets, we found a superior policy for around $1,700 – a savings of about $2,800! And of course, we helped them with their home insurance for total savings of over $3,500.
Pro Tip: Private flood insurance can save you a ton of money and offer more comprehensive coverage than the NFIP, but not all private carriers are created equal. Make sure you’re working with an agency that understands the ins and outs of private flood policies and can get you the best deal without compromising coverage.
*If you get rain, you can flood. There is a misconception that many homeowners have - they think because they live in a low-risk flood zone that they are not in a flood zone. Wrong! Anywhere can flood!
Want to read more about Flood Insurance for Myrtle Beach (Flood Insurance blog posts from Davis Insurance Associates)?
Conclusion:
When you’re moving to the Carolinas from New York, New Jersey, or Pennsylvania, don't make the mistake of assuming your current insurance will seamlessly carry over. Take the time to shop around, understand your deductibles, and explore private flood insurance to ensure you’re getting the best coverage at the best price. At Davis Insurance Associates, we are here to help you navigate the insurance landscape and save you money while protecting your new home and lifestyle.
If you’re relocating to Myrtle Beach, Charleston, Conway, or anywhere in South Carolina, we’d love the opportunity to show you how we can save you thousands and give you the peace of mind you deserve. Reach out to us today for a free consultation and let us help you find the right coverage for your new home, auto, and flood insurance needs.
Thanks for reading!
Davis Insurance Associates would love the opportunity to help with your Home, Auto, Flood (or other) Insurance. You can Start a Quote Here or call (843) 213-0000 - either way we will shop the insurance market and offer you our best!
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