Homeowners Insurance in South Carolina

If the property insurance premium on your legal residence is more than 5% of your adjusted gross income, you can take a state income tax credit for the part above 5%.

Example: your adjusted gross income is $50,000, so 5% is $2,500. If your home insurance premium is $3,200, the excess is $700. You could claim a $700 credit.

• The credit is capped at $1,250 a year.
• If it's more than your tax bill, you can carry the unused part forward for up to 5 years.

If you strengthen your home against hurricanes, you may get two credits:

• 25% of the cost, up to $1,000, for qualifying retrofits.
• Up to $1,500 back on the state sales tax you paid for the materials.

Qualifying work includes stronger roof deck attachment, roof-to-wall connections, a secondary water barrier under the roof, and protection for windows and doors. The work has to meet the state's standards, and you'll need receipts plus a certification or affidavit.

You can open one catastrophe savings account at a bank to save for your hurricane deductible and other storm losses insurance won't cover.

• Money you put in, and the interest it earns, isn't taxed by South Carolina as long as you use it for qualified storm costs.
• Withdraw it for anything else and you pay state tax plus an extra 2.5%.
• It has to be an interest-bearing account. Stocks and bonds aren't allowed.

With percentage hurricane deductibles common on the coast, this is a tax-friendly way to have the cash ready. Ask a tax professional how it fits your situation.