Just a few years ago, it was a very simple thing to line up homeowners' insurance on short notice in Charleston - just before going to closing. 

Today, in the nervous post-Katrina insurance world, insurance companies are much more careful about how they issue policies. Insurance companies today have become very sensitive to what they call, "probable maximum loss."

It is not unusual now for companies to limit the number of policies they issue in certain areas, place more restrictive maximums and minimums on policies, and take other actions to reduce their risk of exposure. They are careful about where they offer policies and how his policies are structured. As a result, it just takes longer than before to get your insurance for your new home.

Many outstanding insurance companies offer homeowners' insurance in the Charleston area. If you start early, you should have no problem obtaining homeowners' insurance. Failing to have your homeowners' insurance lined up in advance will delay your closing.

As a home buyer, it is a good idea to line up your insurance company even before you are sure about which home you will be buying. Of course, the insurance company cannot move forward with issuing a policy until you buy the home; but, they can give you an idea about coverage costs and coverage availability. Shop around and be sure you're getting the very best deal.

Your insurance agent can provide you with the information you need on suggested coverage levels. Discuss deductibles with your agent and make sure that you are paying for only what you want. Many people find that, by raising their deductible, they can reduce their insurance costs substantially. Ask your insurance agent about that.

In the Charleston South Carolina area, insurance costs vary depending on how close you are to the coast.

The areas that are close to the water or east of Highway 17 A, will pay  more for certain types of homeowners' insurance - such as wind and hail damage coverage. Flood insurance may also be required. (your insurance agent can tell you whether or not a certain home will require flood insurance).

Not every insurance company offers homeowners’ insurance in the Charleston area. Some companies that offer homeowners' insurance in the Charleston area do not offer homeowners’ insurance in every part of the Charleston area.

Most people will not make a buying decision based on insurance costs. However, interestingly enough, many people do make buying decisions based on differences in taxes on properties (I am often asked about which county has the lowest taxes). Insurance cost differences are often more dramatic than differences in property taxes from one part of the greater Charleston area to another. While everyone expects homeowners’ insurance and taxes to be more for more expensive homes, few people factor in the location of the home when considering the impact of homeowners’ insurance costs. 

If the cost of insurance is important to you, speak with your insurance representative to get some ideas about the difference in the cost to insure similar homes in different areas of town. Location makes a difference.

Summary:

1. Line up your insurance early do avoid delays in closing

2. Speak with insurance representatives about coverage levels, limits, and costs

3. Insurance will have an impact on your monthly payment.

4. Location makes a difference in cost and availability

5  In Charleston, be especially sensitive to the cost of wind and hail insurance.

6. Flood insurance may be required in some areas. For more on this, go to: Flood Insurance