Is Renters Insurance Required in South Carolina?

If you’re signing a lease in South Carolina or already unpacking your boxes in a rented home or apartment, you may have noticed your landlord requires proof of renters insurance.

This is because your personal belongings aren’t covered by the property insurance – which is paid by your landlord or the owner – on your apartment building or rental house. 

While South Carolina law does not require a renter to take out personal property insurance, landlords often do. Property owners have the right to stipulate that renters provide proof of insurance and buy coverage worth a certain amount of protection – such as $100,000 in liability coverage.

Although renters may not have much choice on whether to obtain insurance, it’s still important to understand how renters insurance coverage works, the potential benefits, and how to shop for an affordable policy.

In this article, we’ll explain the protections commonly gained under renters insurance liability coverage as well as scenarios where you may need to file a claim for personal property loss. 

We’ll also tell you why landlords tend to insert insurance provisions in your lease agreement and how this coverage can benefit you financially in cases of theft, accidents, or natural disasters.

First, let’s go over the standard coverages you’ll typically find in a renters insurance policy:

• Personal property: Protects belongings like furniture, clothing, and electronics.
• Loss of use: Covers living expenses if your home is uninhabitable due to a covered loss.
• Personal liability: Financial protection if you’re responsible for injuries or property damage.
• Medical payments to others: Pays for medical expenses due to a covered incident.
  

Why You Need Renters Insurance

Failing to take out renters insurance as required by your landlord may find you in violation of your lease. But there are practical benefits to you for having this coverage too. For example, renters insurance will pay to replace covered property if valuable belongings are destroyed, stolen, or damaged in an event like a fire or home break-in.

In cases like this, your own insurance plus the landlord’s insurance may apply. In a fire, for instance, the property owner’s insurance would cover structural building damage or restoration. However, the landlord’s dwelling coverage won’t cover a renter’s belongings. Renters insurance would help you pay to replace important and extension possessions – like your furniture, clothing, and other items. Your policy may also foot the bill for a temporary hotel stay.

Having coverage to protect your possessions might be a reason to consider taking out a renters insurance policy, even if it’s not legally required. Consider the kinds of personal property that cost a lot to replace. Here are some examples:

• Electronics (TVs, game systems, laptops, smartphones)
• Furniture (sofas, beds, dining tables)
• Clothing (shoes, designer clothes, business attire)
• Jewelry and collectibles (watches, rings, artwork)
• Kitchen appliances (cooktops, food processors, knife set)
• Sports equipment (snowboard, golf clubs, hunting)

Renters insurance ensures that you can replace these items if they are damaged, lost, or stolen.

Can Landlords Require Renters Insurance?

In every state except Oklahoma, landlords have the right to require renters insurance. Some states and federal housing assistance programs have parameters around renters insurance but no jurisdiction requires renters to carry this insurance.

South Carolina does not mandate renters insurance but landlords often require tenants to have it. This requirement is usually stated in the lease agreement. You may have to show proof of your coverage before you move in, when your lease is up for renewal, or if the property is sold or management is transferred. 

Landlords largely prefer and require renters insurance as it cuts down on claims against their own policy. Frequent claims, of course, can drive up a property owner’s insurance premium cost. In many cases, an owner with one or more homes or buildings may also need umbrella insurance for rental property.

A landlord may require renters insurance in South Carolina in order to ensure extra protection against:

• Relocation expenses: Helpful if the renter needs temporary housing due to natural disaster or fire.
• Property damage: Tenants are less likely to sue landlords for personal property loss.
• Damage or injuries from pets: Landlords who allow dogs, especially, can benefit.

Lastly, requiring renters insurance is a way to screen potential tenants. However, landlords must follow all state and federal laws pertaining to housing discrimination and other insurance-related issues.

How Much Should Renters Insurance Cost? 

You’ll find a good deal of fluctuation between U.S. regions, in terms of how much renters insurance premiums cost. An analysis by NerdWallet found the average renter pays about $12 per month. 

Several factors typically influence the cost of renters insurance:

• Location
  Your state and ZIP code impact insurance rates as weather hazards, crime, and other risks vary by location.

• Coverage
  Higher liability coverage limits or including more valuables under personal property generally leads to higher premiums.

• Deductible
  The amount you’d pay out of pocket if you file an approved claim will vary. Higher deductibles can lower your monthly or annual premium.

• Bundling
  You almost always can save money by bundling policies, such as renters and auto insurance.

• Pets
  Some dog breeds won’t be covered at all. In other cases, an insurance provider may charge you more as there’s a higher risk of claims from a dog bite.

• History
  Your claims history on other insurance policies and your credit-based insurance score (whether you have a history of bad debt, for example) affect your rates.
  

Choosing a Renters Insurance Policy

As you compare your options for renters insurance, you want to go beyond looking for simply the cheapest rate. Make sure, for instance, the personal property coverage limit is appropriate for the overall value of your possessions. For many, a $30,000 policy is sufficient but your situation may require more or possibly less.

You can also ask your agent whether you might save some money on your premium by accepting a higher deductible or by paying your annual insurance cost in full in advance.

It’s also a good idea to make sure you’re comparing apples-to-apples on policies from various insurers. For example, the cheapest renters insurance could carry a long list of exclusions, per-item coverage caps, or stipulate some protection as ACV, or actual cash value. For personal property like furniture, clothes, kitchen appliances, and more, a policy that pays replacement costs on an insurance claim is overall more valuable. 

Often, a renters insurance policy is the first time someone is shopping for property-related coverage. Naturally, you may have a lot of questions about insurance terms or policy details. Or, you may be a homeowner searching for added coverage if you’re relocating or preparing to rent your own property. Understandably, you may be worried about buying coverage you don’t need or lowering the risk of being under-insured.

No matter your reason for looking for renters insurance, we’ll be glad to help you. Our dedicated brokers at Independent Insurance Associates work with all major insurers providing a range of policies, including renters’ needs. In just a short phone call, we can help you quickly shop for the right coverage – at a great price. Give us a call or request a quote online today!