Community Association Insurance in South Carolina

South Carolina at a glance

Condominium statute

Horizontal Property Act, S.C. Code chapter 27-31

Foundational statute for South Carolina's Horizontal Property Regime (HPR) condominiums.

HOA framework

Separate Homeowners Association Act provisions govern planned communities

Distinct from the older Horizontal Property Act condominium regime.

Coastal wind market

South Carolina Wind and Hail Underwriting Association available for coastal wind coverage

Often layered alongside a separate property policy for other perils.

Primary insurance regulator

South Carolina Department of Insurance

Confirm current filing and licensing guidance directly with the department.

Horizontal Property Act and coastal HPR condominiums

South Carolina's Horizontal Property Act, chapter 27-31 of the state code, is the foundational statute for the state's condominium regimes, generally called Horizontal Property Regimes or HPRs, and it requires the association to maintain insurance on the building consistent with the master deed. Myrtle Beach, Hilton Head, and other coastal HPR condominiums represent some of the state's highest property values per association, and their master policies typically need higher wind and flood limits than an inland HPR would carry.

Homeowners Association Act and planned communities

South Carolina's newer statutory framework for homeowners associations sets out governance and disclosure requirements for planned communities distinct from the older Horizontal Property Act condominium regime, and associations should confirm which statute actually governs their community rather than assuming HPR terminology and rules apply to a detached-home HOA. Fast-growing inland South Carolina communities around Columbia, Greenville, and the I-85 corridor are predominantly HOA-governed rather than HPR condominiums.

Wind and Hail Underwriting Association coastal availability

Coastal South Carolina associations, particularly along the Grand Strand and in the state's beach and barrier-island communities, sometimes rely on the South Carolina Wind and Hail Underwriting Association for wind coverage when standard-market capacity is limited, layering that coverage alongside a separate property policy for other perils. Boards in these coastal HPRs should expect more complex placement structures than an inland South Carolina association, often involving multiple carriers rather than a single master policy.

Fidelity coverage and reserve funding

South Carolina associations pursuing Fannie Mae, Freddie Mac, FHA, or VA-eligible financing for unit sales generally need fidelity coverage sized to reserves and assessment income, and reserve study quality varies significantly across the state's mix of decades-old Grand Strand HPR buildings and newer inland HOA developments. Older coastal HPR buildings with deferred exterior maintenance are a common source of both reserve-funding concerns and elevated wind-related claims after storm events.

Who we write this for in South Carolina

Community association FAQs for South Carolina