What Insurance Do I Need Before Closing on a House in Myrtle Beach, SC?

By Brad Davis, CIC (May 3, 2026)
Davis Insurance Associates – Myrtle Beach, South Carolina

Buying a home in Myrtle Beach is exciting, but insurance can quickly become one of the more confusing parts of the closing process.

Your lender will usually require proof of insurance before closing. However, the bigger question is not just “Do I need home insurance?” The better question is:

What type of insurance should I purchase based on how I plan to use the property?

That matters a lot in the Myrtle Beach area because many homes are used as primary residences, second homes, vacation properties, long-term rentals, or short-term rentals. The right policy depends on more than the address. It also depends on occupancy, rental use, flood exposure, wind exposure, and lender requirements.

Short Answer: What Insurance Do I Need Before Closing?

Before closing on a house in Myrtle Beach, SC, you will usually need the right type of property insurance – based on how the home will be occupied.

Common examples include:

• Primary residence: Homeowners insurance, often an HO-3 policy
• Second home or vacation home: Homeowners or secondary home policy
• Rental property: Dwelling fire or landlord policy, often a DP-3
• Flood exposure: Your lender may require flood insurance, and many Myrtle Beach buyers choose it even when it’s optional.
• Coastal wind exposure: Wind, hail, hurricane, or named storm deductibles need to be reviewed carefully

The most common mistake buyers make is assuming every home should be insured the same way. In Myrtle Beach, that can lead to major problems.

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Why the Type of Policy Matters Before Closing

Before an insurance agent can quote the right policy, they will need information about who will live there.

You may be asked questions like these:

Do you plan to live in the home full-time?
Is it a second home or vacation property?
Are you planning to rent it to others?
Could it be used as a short-term rental?

Those answers can completely change the type of insurance policy you should have.

A lender may simply ask for “homeowners insurance,” but that does not always mean a standard homeowners policy is the right fit. If the property is rented to others, especially as an Airbnb or vacation rental, a regular homeowners policy may not provide the protection you think it does.

That is why it is important to be honest and clear about occupancy before closing.

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1. Insurance Based on How the Property Will Be Used

Primary Residence: Homeowners Insurance

If you plan to live in the home full-time, you will usually need a standard homeowners insurance policy. This is often referred to as an HO-3 policy (though sometimes written on an HO-5 or even a carrier’s proprietary form).

A homeowners policy typically helps protect:

• The home itself
• Other structures on the property
• Personal belongings
• Personal liability
• Additional living expenses if a covered claim makes the home temporarily unlivable

This is the most common type of policy for owner-occupied homes and is usually what lenders expect when the buyer will live in the home.

However, even with a primary home, Myrtle Beach buyers still need to look closely at deductibles, wind coverage, roof requirements, flood exposure, and coverage limits.

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Second Home or Vacation Home

If the home will be used part-time, it may still be insured on a homeowners-style policy, but the insurance company will usually treat it differently than a primary residence.

This is common in Myrtle Beach because many buyers purchase homes or condos here for vacations, seasonal use, or future retirement.

A second home may have:

• Higher premiums
• Different underwriting rules
• Vacancy or occupancy requirements
• Different eligibility depending on how often the home is used
• Possible restrictions if the home is rented to others

The key question is whether the home is truly just for personal use or whether it will also be available for others to rent or use. Once rental activity is involved, the insurance conversation changes.

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Rental Property: Dwelling Fire or Landlord Policy

If you plan to rent the home, even occasionally, you may need a dwelling fire policy, often called a landlord policy or DP-3 policy (though sometimes written on other types or carriers’ proprietary forms).

This can apply to:

• Long-term rentals
• Seasonal rentals
• Short-term rentals
• Vacation rentals
• Airbnb or VRBO-style rentals

A dwelling fire policy typically helps cover the structure and may include liability coverage. Depending on the policy, it may also include loss of rental income after a covered claim.

However, it usually does not cover personal belongings the same way a homeowners policy does. If the property is furnished, you may need to discuss coverage for landlord-owned contents.

This is one of the biggest insurance issues in Myrtle Beach.

If a property is insured as owner-occupied but is actually being rented to others, a claim could become complicated or even denied, depending on the policy language and facts of the claim.

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Why Short-Term Rentals Need Extra Attention

Short-term rentals create a different risk than a home occupied by the owner.

There may be:

• More people coming and going
• Increased liability exposure
• More wear and tear
• Greater chance of accidental damage
• Different rules from insurance companies
• Possible requirements from the lender, HOA, or rental platform

For example, a home used as a weekend rental may need a different insurance approach than a home used only by the owner and their family.

If you are buying a property in Myrtle Beach, North Myrtle Beach, Surfside Beach, Garden City, Carolina Forest, Socastee, or nearby areas and plan to rent it, make sure your insurance agent knows that before the policy is written.

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2. Flood Insurance in Myrtle Beach, SC

You usually buy flood insurance separately from your homeowners or dwelling fire policy.

This surprises many buyers, but it is very important:

Homeowners insurance and dwelling fire policies usually do not cover flood damage.

If the home is located in a high-risk FEMA flood zone (FEMA Flood Map Service), your lender may require flood insurance before closing. Common flood zones in coastal South Carolina may include zones such as AE or VE, depending on the property.

Areas where flood insurance may be especially important include:

• Oceanfront homes and condos
• Homes near the Intracoastal Waterway
• Low-lying areas
• Properties near creeks, rivers, marshes, or drainage areas
• Parts of Socastee, Surfside Beach, Garden City, Carolina Forest, and surrounding communities

Even if flood insurance is not required by the lender, many Myrtle Beach-area buyers still choose to carry it.

Why?

Because flood damage can be devastating, and flood losses are not limited to oceanfront properties. Heavy rain, storm surge, drainage issues, and rising water can affect properties that are not directly on the beach.

Before closing, it is a good idea to ask:

• Is flood insurance required by the lender?
• What FEMA flood zone is the home in?
• Is private flood insurance available?
• Is NFIP flood insurance a better fit?
• Are contents covered?
• Is there a waiting period?
• What deductible options are available?

Flood insurance can be one of the most important parts of protecting a coastal property.

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3. Wind and Hail Coverage in Coastal South Carolina

In Myrtle Beach, wind and hail coverage deserves special attention.

Even if a policy includes wind coverage, that does not mean every wind-related claim will have the same deductible as the rest of the policy.

Many coastal policies may include:

• A separate wind and hail deductible
• A hurricane deductible
• A named storm deductible
• A percentage deductible
• Special exclusions or limitations

For example, if a home is insured for $400,000 and has a 3% hurricane deductible, the out-of-pocket deductible could be:

$400,000 x 3% = $12,000

That is a very different conversation than a flat $2,500 deductible.

This is why buyers should review more than just the annual premium. A lower premium may come with a much higher wind, hail, hurricane, or named storm deductible.

Before closing, ask your agent:

• Is wind and hail included?
• Is there a separate hurricane or named storm deductible?
• Is the deductible a flat amount or a percentage?
• Are there any wind exclusions?
• Is a separate wind policy needed?
• Does the roof age affect eligibility?

These details matter in coastal South Carolina. Here is more about Wind & Hail Deductibles from a previous blog post.

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How Much Is Home Insurance in Myrtle Beach, SC?

Home insurance premiums in Myrtle Beach can vary widely.

The cost depends on several factors, including:

• Location of the home
• Distance to the coast
• Age of the home
• Age and type of roof
• Construction type
• Coverage amount
• Deductibles
• Wind and hail exposure
• Flood zone
• Claim history
• Occupancy type
• Whether the property is rented

As a general range, many Myrtle Beach-area home insurance policies may fall somewhere around $2,500 to $4,000+ per year, but some homes may be lower or much higher depending on the risk.

At our agency, our local average has been around $3,215 per year, but that number includes a variety of homes, carriers, locations, and coverage situations.

Rental homes, older homes, oceanfront homes, homes with older roofs, and properties close to the coast may fall on the higher end.

The best approach is to quote the home as early as possible once you are under contract. That gives you time to review options instead of rushing right before closing.

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Why Occupancy Matters So Much in Myrtle Beach

Occupancy matters everywhere, but it is especially important in the Myrtle Beach area.

That is because our market has a mix of:

• Primary homes
• Second homes
• Vacation homes
• Investment properties
• Long-term rentals
• Short-term rentals
• Condos
• Coastal homes
• Homes in flood-prone areas

Insurance companies want to know how the property is occupied because the risk changes based on usage.

A full-time owner-occupied home is different from a beach house rented every weekend during the summer. A long-term rental is different from a second home used only by the owner. A condo used personally is different from a condo rented through a vacation rental program.

Choosing the wrong policy can create serious issues, including:

• Coverage gaps
• Claim problems
• Lender issues
• Incorrect rating
• Possible cancellation
• A denied claim in certain situations

The safest approach is to explain the true use of the property upfront.

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When Do You Need Insurance Before Closing?

You will usually need the policy to be active on the day of closing.

Most lenders will require proof of insurance before they finalize the loan. This is often called an insurance binder, evidence of insurance, or proof of coverage.

A typical process looks like this:

1. You go under contract on the home.
2. You tell your insurance agent how the home will be used.
3. Your agent works with you to quote the correct type of policy.
4. You and your agent review flood insurance.
5. You and your agent also review your wind and hail coverage.
6. You or your agent sends proof of insurance to the lender.
7. The policy becomes effective on the closing date.

It is best not to wait until the last minute.

Starting early is especially important if:

• The property is near the beach
• The home is in a flood zone
• The property will be used as a rental
• The roof is older
• The home is vacant
• The home is under renovation
• The closing date is coming up quickly

Insurance can sometimes affect the closing timeline, so it is smart to get the conversation started as soon as possible.

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Common Insurance Mistakes to Avoid Before Closing

Here are some common mistakes we see buyers make in the Myrtle Beach area.

Mistake 1: Choosing the wrong policy type

A primary home, second home, and rental property may all need different insurance solutions.

Do not assume a standard homeowners policy is correct for every property.

Mistake 2: Not disclosing rental use

If you plan to rent the home, tell your agent before the policy is written.

This includes occasional rental use, short-term rental use, seasonal rental use, or long-term tenants.

Mistake 3: Skipping flood insurance because it is not required

Just because a lender does not require flood insurance does not mean the risk is not there.

Flood insurance is worth discussing for many Myrtle Beach-area homes.

Mistake 4: Looking only at the premium

The cheapest policy is not always the best fit.

Look at coverage limits, deductibles, wind and hail terms, exclusions, roof settlement terms, liability limits, and flood options.

Mistake 5: Waiting until right before closing

Coastal insurance can take more time than buyers expect.

It is better to start early and have time to compare options.

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Questions to Ask Your Insurance Agent Before Closing

Before you close on a house in Myrtle Beach, consider asking:

• What type of policy do I need based on how I will use the home?
• Are you quoting this as a primary home, second home, or rental property?
• Is short-term rental use allowed?
• Is flood insurance required?
• Should I consider flood insurance even if it is optional?
• Is wind and hail included?
• Is there a separate hurricane or named storm deductible?
• Are there roof age restrictions?
• Does the policy cover replacement cost or actual cash value?
• Are my personal belongings covered?
• Do I need higher liability limits?
• Should I consider an umbrella policy?

These questions can help you avoid surprises after closing.

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Final Thoughts

If you are asking, “What insurance do I need before closing on a house in Myrtle Beach, SC?”, the answer depends on two major things:

How you plan to use the property and where the property is located.

A home you live in full-time may need a homeowners policy.
A second home may need a secondary home policy.
A rental property may need a dwelling fire or landlord policy.
A property near water may need flood insurance.
A coastal property needs careful review of wind and hail coverage.

Getting the insurance correct before closing helps protect your home, your loan, your investment, and your peace of mind.

At Davis Insurance Associates, we help Myrtle Beach-area buyers compare options from multiple insurance companies so they can make a more informed decision before closing.

Disclaimer: This article is for general informational purposes only and does not provide legal, lending, or coverage advice. Insurance requirements and coverage options vary by property, lender, insurance company, occupancy, policy language, endorsements, exclusions, and underwriting guidelines. Your actual coverage will depend on the specific terms and conditions of your policy.