GSP Insurance Group Blog |
![]() South Carolina's beautiful coastal region has always been a prime location for homeowners looking to enjoy the stunning beaches and year-round sunny weather. However, this picturesque region has faced its share of natural disasters, including hurricanes, flooding, and severe storms, leading to a significant impact on the coastal home insurance market. Over the past few years, South Carolina's coastal insurance market has undergone some significant changes. Let's take a closer look at the current state of the coastal home insurance market in South Carolina. The Impact of Hurricanes on Home Insurance Rates One of the most significant factors affecting the South Carolina coastal home insurance market is the threat of hurricanes. Home insurance rates in the coastal region have increased significantly due to the frequency of these natural disasters. Insurance companies have become increasingly hesitant to insure homes in the coastal areas, and many have either stopped writing new policies or have increased premiums significantly. Important Market Updates 2023 A record number of Coastal Insurers went bankrupt, were declared insolvent, or no longer write coastal properties in 2022 ( St. Johns, Gulfstream, Avatar, Lighthouse, Fed Nat, & Southern Fidelity). In 2023 we are seeing the market for coastal home insurance continue to shrink due to a number of factors such as mergers and acquisitions, State Auto was acquired by Liberty Mutual and their Individual Home and Auto Business is being folded in to Safeco (their commercial products remain) and will not write coastal business going forward. We are also seeing carriers like Homeowners of America (HOA) and Heritage that are non-renewing many policies or taking large rate increases for a significant number of clients IF they offer a renewal at all. The Coastal Market is shifting greatly to the Excess & Surplus and non-admitted markets as we are seeing those as the main options for Coastal going forward, which typically comes with higher deductibles and increased premiums. Final Thoughts In conclusion, the coastal home insurance market in South Carolina is facing significant challenges. Working with an independent agent such as GSP Insurance Group will help coastal residents find solutions to protect their homes and enjoy the stunning natural beauty of the region. Tyler Grizzle & Lee Songer- Partner GSP Insurance Group
|
Contact Us(843) 707-4473 Archives
March 2023
Categories
All
|