SC will have one of largest insurance rate jumps by 2035, report says. Here’s why, how much

South Carolina is a beautiful state to live in, but it’s also one of the most expensive states for home insurance in the U.S., and a recent report warns that it’ll get even costlier in the coming years due to increasing climate risk.

For 2026, the state’s projected annual insurance premium is $3,370, making SC the 10th most expensive state for home insurance, right behind Illinois and Kansas, according to Grist, a nonprofit online magazine dedicated to climate change and environmental justice. In comparison, the national average for home insurance is $3,057.

Coalition for an Insurable Future, an advocacy group, and Mandala Partners, a public policy consulting firm, worked together to create a report that highlights how extreme weather is accelerating a systemic crisis in the U.S. home insurance market.

According to their report, there has been a 38% increase in homeowners insurance premiums in the U.S. since 2021, outpacing inflation and wage growth. The report correlates the rising rates to increasing climate disasters.

The frequency of billion-dollar climate-related disasters in the US has also risen substantially since 1980. Between 1980 and 1984 and 2020 and 2024, the count of such events increased from 16 to 112.

As a result, Coalition for an Insurable Future predicts that homeowners’ insurance premiums will rise by at least 35% by 2050. It will likely leave a significant wound on the national economy. Compounding premium hikes and uninsured individuals are expected to cost households, insurers, businesses, banks and the government $1 trillion by 2035.

SC will be one of the most impacted states in the nation. Here’s how much insurance rates in SC are expected to increase by 2035:

Homeowner insurance premiums will increase across the country, but the Southeast will see the biggest changes, and not for the better.

SC is especially sensitive to climate risks and is predicted to see the 2nd highest insurance premium increases in a decade, right behind Louisiana. By 2035, the report says premiums will rise by at least 60% on average and will push up to 203%. Premiums in Louisiana are expected to rise between 83% and 247%.

SC is one of the few states where households are expected to spend more on premiums per year than on groceries by 2035. Additionally by 2035, South Carolinians will spend more annually on home insurance premiums than they currently do on property taxes.

Coastal areas in SC will take most of the brunt. Here are the counties that will see the biggest spike in premium costs:

Coalition for an Insurable Future expects these 10 counties in SC to have the biggest premium increases by 2035:

You can’t stop rising climate events from increasing insurance premiums, but there are ways to reduce your risk and prepare for the worst:

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