South Carolina House Bill H5063

South Carolina 2025-2026 Regular Session

• Introduced: 1/29/26
• Refer: 1/29/26

Caption

A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 38-75-70 SO AS TO REQUIRE PERIODIC FULL STRUCTURAL INSPECTIONS OF CERTAIN COASTAL MULTI-STORY BUILDINGS BY CERTIFIED STRUCTURAL EXPERTS AS A CONDITION OF PROPERTY INSURANCE RENEWAL, TO PROVIDE INSURERS MAY CONSIDER THE FINDINGS AND CONCLUSIONS OF STRUCTURAL INSPECTION REPORTS WHEN DETERMINING WHETHER TO RENEW, NONRENEW, OR CONDITIONALLY RENEW A POLICY, AND TO PROVIDE A POLICY RENEWED FOLLOWING A QUALIFYING INSPECTION MUST PROVIDE COVERAGE FOR LOSS OR DAMAGE UP TO POLICY LIMITS AND COVERAGE FOR REASONABLE ALTERNATIVE LIVING EXPENSES WHEN EVACUATION IS NECESSARY DUE TO STRUCTURAL DEFICIENCIES.

Summary

H5063 would create a new property-insurance-related structural inspection requirement for certain coastal buildings in South Carolina. The bill applies to residential or mixed-use buildings in the coastal area that are at least four stories or 49 feet tall and at least 15 years old. Those buildings would have to undergo a full structural inspection by a certified structural expert at least once every five years as a condition of renewing property insurance. The Department of Insurance would also be required to maintain a public database of certified structural experts. The inspection report would be provided to both the insured and the insurer, and insurers could use the findings when deciding whether to renew, nonrenew, or conditionally renew coverage. If a policy is renewed after a qualifying inspection, the bill requires the insurer to provide coverage up to the full policy limits for loss or damage to the building, and to cover reasonable alternative living expenses if occupants must be evacuated because of structural deficiencies identified between inspections. The act would apply to policies issued or renewed after December 31, 2026.

Impact

The bill would add Section 38-75-70 to Title 38 of the South Carolina Code, creating a new regulatory framework for property insurance on certain coastal multi-story buildings. It would impose a recurring inspection obligation tied to insurance renewal, expand the information insurers may consider in underwriting and renewal decisions, and require specified coverage protections for renewed policies following a qualifying inspection. The measure would directly affect building owners, condominium and mixed-use property stakeholders, structural engineers, and property insurers operating in coastal South Carolina.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears to be precautionary and consumer-protective rather than contentious on its face. The bill is framed as a safety and insurance-stability measure, likely reflecting concern about structural integrity in older coastal buildings and the need to ensure continued coverage and evacuation-related living expenses when defects are found. Because no transcripts or voting history are provided, there is no documented public split or formal opposition in the available record.

Contention

The main points of potential contention are likely to be the cost and feasibility of mandatory five-year structural inspections, the burden on owners of older coastal buildings, and the extent to which insurers may rely on inspection findings to deny, nonrenew, or condition coverage. Property owners may view the requirement as expensive or disruptive, while insurers may support the added risk information but could be concerned about the mandated coverage terms after renewal. Another possible issue is the scope of the bill’s geographic and building-height thresholds, which target coastal multi-story structures and may raise questions about whether the requirements are sufficiently broad or narrowly tailored.