By Alex Stalvey
In South Carolina, it’s legal to own your home outright without carrying homeowners’ insurance. With premiums climbing every year, many families are tempted to drop it.
A 2025 LendingTree study found that nearly one in seven U.S. owner-occupied homes, over 11 million households, were uninsured in 2023. At the same time, premiums rose 11.4% in 2024, after jumps of 11% in 2023 and 5.4% in 2022. That’s more than 40% growth since 2019.
So yes, it’s legal. But is it wise?
I can certainly understand why it would be a consideration. But as a personal injury attorney, I see what happens when someone gets hurt and there’s no insurance coverage in place. Even something as routine as the cost of treating a fractured bone can quickly erase any savings gained by skipping on a premium.
Before you decide to drop your coverage, ask yourself these five questions:
- If a guest is injured on my property, could I afford the medical bills and legal costs out of pocket? Liability claims average more than $20,000, and in South Carolina, we’ve handled cases where damages reached into the hundreds of thousands.
- Do I have children who bring friends over, or pets that could injure someone? South Carolina’s dog bite law makes owners automatically liable. We often represent families in these cases, and the costs of medical care, therapy, and recovery can escalate quickly.
- Do I ever hire contractors, housekeepers, or landscapers to work at my home? More people on your property means more risk. These are the types of claims and scenarios that are ripe for legal disputes.
- Could my business assets be exposed if I’m sued? If you operate as a sole proprietor or run an LLC but blur the lines between business and personal finances, liability can extend to your company. We’ve seen cases where a home office became part of the dispute, and suddenly, both personal and business assets were at risk.
- Am I willing to put my savings and retirement at risk? Without insurance, one lawsuit could wipe out emergency funds, retirement accounts, or even the equity in your home.
Why Liability Is the Bigger Risk
Most people think of homeowners insurance as a way to replace a roof or repair storm damage. The bigger issue is liability.
It’s not just catastrophic or serious injuries that lead to lawsuits. Yes, a housekeeper could fall down the stairs and face life-altering paralysis. But it could also be something more benign, like a neighbor’s child fracturing an ankle during a soccer game in your backyard.
Medical bills mount quickly, and even the friendliest of neighbors would be wise to seek legal counsel once they realize your insurance isn’t available to cover those costs. That’s when my team gets involved, to protect the injured person’s rights and make sure expenses are fairly covered.
The Cost of One Incident
The Insurance Information Institute reports the average liability claim is more than $20,000. But averages don’t tell the whole story. In South Carolina, we’ve represented clients where settlements climbed to $850,000 and beyond. Without coverage, those costs fall directly on the homeowner.
Bottom Line
Yes, premiums are expensive. And yes, you can remove your policy. But you need to consider your answers to the questions above and think about how comfortable you’d be opening yourself up to that kind of liability.
If you are having trouble securing the compensation you believe you deserve due to an accident, we’re here to help.
