Grand Strand town has highest coastal flood insurance rate in SC. 5 things to know
Rising flood insurance premiums are forcing South Carolina coastal homeowners to choose between paying thousands more each year or risk leaving the communities they love. Several South Carolina cities rank among the highest average flood insurance costs along the southern Atlantic coast.
FULL STORY: Beachfront dream, billionaire budget: Flood insurance pricing SC buyers from paradise.
Here are key takeaways:
• Premiums are climbing: FEMA’s Risk Rating 2.0 model, launched in 2021, bases premiums on property-specific flood risk rather than just flood zone. National Flood Insurance Program policies predating the change face annual increases up to 18% to 25% until they reach their full risk-based rate. Policies obtained after 2021 could increase up to 18% to adjust for inflation. Private insurance policies do not have caps on annual increases.
• South Carolina is losing thousands of policies: Between 2024 and 2025, Charleston and Horry counties each lost nearly 1,300 NFIP policies, Georgetown County lost about 300 and Beaufort County lost about 950. The state lost nearly 5,000 policies, but average policy costs increased.
• Pawleys Island has the state’s highest coastal average: The average annual NFIP payment in Pawleys Island was $4,199 in 2025, according to FEMA data. Georgetown’s average was $2,078, Surfside Beach was $1,216, Beaufort was $1,142 and Hilton Head Island was $913.
• Flood risk extends well beyond flood zones: Nearly 150,000 properties across Horry, Georgetown, Charleston and Beaufort counties face major, severe or extreme flood risk over the next 30 years, according to First Street. Only about 100,000 are mapped in zones that require flood insurance with a mortgage.
• Discounts exist but have limits: Communities can qualify for NFIP premium discounts of 5% to 45% through the Community Rating System. Charleston County earns a 40% discount, while Horry and Beaufort counties get 25%. However, these discounts do not apply to private insurance policies.
The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at top was reported, written and edited entirely by journalists.