Sales prices were not the only skyrocketing home-related costs South Carolina residents have dealt with over the past year.
The average price of South Carolina homeowners’ premiums have shot up 22% since 2021 — the second biggest increase nationwide, according to a new analysis by LendingTree, an online insurance marketplace. In comparison, premiums are up just 2% nationwide on average.
South Carolina homeowners on average are paying $2,493 a year in premiums in 2022, up from $2,048 last year.
The analysis shows that inflation and the rising price of homes are the two main factors for increasing premiums in South Carolina and other states.
South Carolina has seen consistent increases in home sales prices over the last two years.
The median sales price for South Carolina was $300,993 from January through April, up 17.1% over the same period last year, the latest South Carolina Realtors data shows.
“Simply put, the more expensive your home, the more expensive your home insurance,” the analysis report states.
And with inflation, it now costs $36,000 more on average to rebuild a home than it did a few years ago, adding to premium costs.
“Add to that the increased cost of replacing the items in your home and your existing policy may no longer fully cover the cost of rebuilding your home after a total loss,” the report notes. “Many homeowners may now need to recalculate the amount of coverage they have for their home.”
Climate change and the rise in natural disasters have also had an impact on recent homeowner insurance premiums, given that most policies do not cover specific types of disasters, the report states.
There has been an 83% increase in billion dollar floods over the last 20 years but floods, earthquakes and mudslides are not covered by homeowners insurance. They’re instead covered under specific policies, the report states.
Key findings in the analysis for South Carolina include:
- The average premium is now $2,493
- The average premium increase nationwide is 2%
- Home prices are up 37% since 2020
These five states had the biggest increases in home insurance premiums since 2021.
- Idaho — 34%
- South Carolina — 22%
- Missouri — 21%
- Kansas — 16%
- New Mexico — 13%