Pawleys Island lives by the motto "arrogantly shabby," and that laid-back coastal charm is part of what makes this barrier island community so special. But while life on the Grand Strand might feel relaxed, your insurance needs are anything but simple. Between hurricane exposure, flood zones, and coastal property challenges, getting the right coverage here requires understanding some unique local factors.
Whether you're a year-round resident, own a vacation home, or just moved to Georgetown County, this guide covers everything you need to know about insurance in Pawleys Island. We'll walk through the specific challenges of insuring coastal property, explain why rates are higher here, and help you find the right local agents who understand this unique market.
Why Pawleys Island Insurance Costs More
Let's be direct: Pawleys Island has the most expensive homeowners insurance rates in South Carolina, averaging $4,728 per year. That's nearly double the state average. Why? Three words: barrier island exposure.
As a narrow strip of land directly facing the Atlantic Ocean, Pawleys Island takes the full brunt of hurricanes and tropical storms. The island has experienced multiple major flooding events, including repeat damage from storms in 1987 and Hurricane Hugo in 1989. Insurance companies look at this history and see significant risk, which translates directly into higher premiums.
Here's what drives those costs up: wind-driven storm surge from the Atlantic, the island's low elevation, limited escape routes during evacuations, and a concentration of high-value coastal properties. Some national insurers have stopped offering coverage for coastal properties altogether, forcing homeowners into specialized wind and hail pools or excess markets where rates are even steeper.
The Flood Insurance Reality: It's Not Optional
Every single property on Pawleys Island sits in a FEMA-designated high-risk flood zone, classified as either Zone AE or Zone VE. What does that mean for you? If you have a mortgage from a federally backed lender, flood insurance isn't just recommended—it's required.
But here's the thing most people miss: your standard homeowners policy doesn't cover flood damage at all. Zero. Even if you're paying those high coastal premiums, you still need a separate flood insurance policy. Georgetown County adopted new flood insurance rate maps in 2023, and the average NFIP policy here costs around $1,257 annually—already the highest in South Carolina, and expected to jump another 113% as FEMA's Risk Rating 2.0 fully phases in.
There is good news: Pawleys Island participates in FEMA's Community Rating System, which earns residents a 25% discount on flood insurance premiums. That discount recognizes the town's floodplain management efforts and can save you hundreds of dollars each year. Properties on Pawleys Island have a 26% chance of experiencing flooding during a standard 30-year mortgage period, so this coverage protects what's likely your biggest investment.
Auto Insurance Requirements in South Carolina
Good news here: auto insurance is more straightforward. South Carolina requires what's called 25/50/25 liability coverage. That breaks down to $25,000 per person for bodily injury, $50,000 total per accident for all injuries, and $25,000 for property damage. You also need matching uninsured motorist coverage at the same limits, typically with a $200 deductible.
These are the legal minimums, and they haven't changed for 2025. But here's the reality: $25,000 doesn't go far if you cause a serious accident. Medical bills from even a moderate injury can exceed your coverage limits, leaving you personally liable for the difference. Most insurance professionals recommend at least 100/300/100 coverage, and if you own property or have significant assets, consider even higher limits or an umbrella policy.
Living on Pawleys Island, you're probably driving the causeways and bridges to Litchfield, Georgetown, or up to Myrtle Beach regularly. Summer tourist traffic increases accident risk, and higher coverage limits give you peace of mind whether you're commuting or just heading to the hammock shops.
Finding the Right Local Agent
Working with a local independent insurance agent who knows the Georgetown County market makes a real difference. At least five established agencies serve Pawleys Island directly, with several more in nearby Georgetown and Murrells Inlet. These agents understand coastal property challenges, know which carriers still write policies here, and can help you navigate the complexities of wind, flood, and standard homeowners coverage.
When you're choosing an agent, ask about their experience with coastal properties specifically. How many Pawleys Island clients do they serve? Which carriers do they work with that still write wind coverage for barrier islands? Can they help coordinate your homeowners, flood, auto, and umbrella policies to ensure there are no gaps? A knowledgeable local agent will walk you through elevation certificates, wind mitigation credits, and the specific endorsements that matter for coastal properties.
What Coverage You Actually Need
For Pawleys Island property owners, you're really looking at three separate policies working together. First, your standard homeowners policy covers fire, theft, liability, and most perils except wind and flood. Second, your wind and hail coverage (which might be through the South Carolina Wind and Hail Underwriting Association if you can't get it privately) protects against hurricane and storm damage. Third, your NFIP or private flood policy handles rising water and storm surge.
Pay close attention to replacement cost coverage versus actual cash value. Replacement cost pays to rebuild your home at today's construction prices, while actual cash value deducts depreciation. On a barrier island where building codes are strict and construction costs are high, replacement cost coverage is essential. Also, make sure your dwelling coverage limits account for the increased costs of building in coastal zones.
Don't forget about liability coverage. If someone gets injured on your property, your homeowners liability coverage protects you. Consider adding an umbrella policy that sits on top of your auto and home coverage, providing an extra $1-2 million in liability protection. It's surprisingly affordable and gives you substantial additional security.
Getting Started With Your Insurance Coverage
Start by getting your property's elevation certificate if you don't already have one. Georgetown County requires this document for building permits in flood zones, and it's essential for properly rating your flood insurance. Your insurance agent or a local surveyor can help you obtain this.
Next, contact at least two or three local independent agents for quotes. Give them the same information so you're comparing apples to apples. Ask each agent to explain the coverage differences between their quotes—sometimes a lower premium means higher deductibles or coverage gaps that aren't obvious at first glance.
Review your coverage annually, especially after any major storms or changes to your property. Keep detailed home inventory records and photos of your belongings—after a major hurricane, you'll be glad you documented everything. And don't wait until hurricane season to buy flood insurance; there's typically a 30-day waiting period before coverage takes effect.
Yes, insurance costs more on Pawleys Island than almost anywhere else in South Carolina. But this barrier island offers something special—peaceful beaches, historic charm, and that legendary laid-back lifestyle. Working with experienced local agents who understand coastal insurance challenges helps you get the right protection at the best possible price, so you can enjoy everything that makes Pawleys Island home.
