South Carolina (SC)
Short-Term Rental Insurance in South Carolina
South Carolina applies a statewide accommodations tax to short-term rentals, but Charleston's short-term rental ordinance layers a strict overlay-district and licensing system on top that is considerably more restrictive than the more permissive licensing found in Myrtle Beach and other Grand Strand resort towns.
South Carolina at a glance
- State tax
- Statewide accommodations tax administered by the Department of Revenue
- Charleston overlay districts
- Non-owner-occupied short-term rentals restricted to designated overlay districts with capped licenses
- Grand Strand licensing
- Myrtle Beach and nearby towns maintain comparatively open vacation-rental licensing
- Primary regulator
- South Carolina Department of Insurance
Marketplace facilitator provisions can shift remittance duty to the platform.
A property outside a designated district may not legally operate as a short-term rental.
No overlay-district caps like Charleston's peninsula restrictions.
Confirm current insurance-producer and coverage questions with the department or a licensed agent.
State accommodations tax and business license baseline
South Carolina's statewide accommodations tax applies to short-term rentals the same way it applies to hotels, administered by the Department of Revenue, and hosts renting directly must register and remit unless a marketplace facilitator handles collection under the state's marketplace facilitator provisions. This state-level tax layer applies uniformly whether a rental sits on Charleston's peninsula or along the Grand Strand, but the right to actually operate the rental legally depends heavily on local licensing that varies sharply between those two markets.
Charleston's restrictive short-term rental overlay districts
Charleston restricts most non-owner-occupied short-term rentals to specific overlay districts and caps the total number of licenses available, a response to concerns about short-term rentals displacing long-term residents on the historic peninsula. Owner-occupied rentals face a somewhat lighter path than whole-unit investment rentals, but even owner-occupied hosts must obtain a business license and comply with the applicable overlay district's rules, which can mean a property just outside a designated district cannot legally operate as a short-term rental at all.
Grand Strand resort-town licensing is comparatively open
Myrtle Beach and neighboring Grand Strand towns have historically built their local economies around vacation rentals and generally maintain more permissive licensing than Charleston, without the same overlay-district caps limiting where a rental can legally operate. High-rise oceanfront condo towers common along the Grand Strand also carry a very different fire-protection and building-class profile than Charleston's historic single-family and rowhouse rental stock, which should be reflected directly in how a program underwrites building and contents coverage.
Who we write this for in South Carolina
Short-term rental FAQs for South Carolina
General guidance, not legal advice. South Carolina requirements change and apply differently by entity type, class code and contract. Confirm current rules with the South Carolina Department of Insurance or talk with a licensed Provident agent.
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