The Cost of Flood Insurance in South Carolina

How much does flood insurance cost?

This is a question we hear almost daily. As of October 2021, FEMA changed the way flood rates are calculated. The rates are no longer solely based on risk factors. FEMA has now changed to an equity rating system. What does this mean? Without the need for a semester length class, the short answer is new flood rates along the coast of South Carolina have increased an average of 2-3x. We have seen a standard flood policy rate for a home in an AE zone go from $450 per year to $1,400 per year. FEMA bases a large portion of the rate on the square footage of the home. Therefore a 4,000 square foot home fifty miles inland may have a much larger flood premium than a home that is 1,500 square feet oceanfront.

How to we lower flood premiums?

Fortunately, Dunes Insurance can insure your home with private carriers. We have over ten private flood carriers to compete for your business. The coverage is the same, if not better than a FEMA flood policy. Private carriers are the same as what insures your home insurance, car insurance, life insurance, etc. Private companies can insure your flood premium much lower than FEMA in most cases. Over ten years ago we had 100% of flood policies being insured through FEMA. Today, we probably have 80% of new business insured with private markets. FEMA is not only increasing flood rates for new business, but renewal rates are slowly increasing as well. We believe by 2030, flood insurance will be part of a normal home insurance policy for some policyholders, similar to fire coverage, wind coverage, etc.


FEMA seems to change rating guidelines every few years. Therefore, it’s possible the rating platform will change soon. If it does, Dunes Insurance will continue to find ways to lower your premium while still offering you better coverage. Give us a call today at 843-737-6236 or review our website and we will be happy to review your flood insurance.


Matt Turbeville



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