FORTIFIED Roof Insurance Credits & Tax Credits in South Carolina

What South Carolina law requires of insurers

South Carolina does not set a fixed FORTIFIED discount. What the law does require:

• Coastal rating plans must include mitigation credits. Under S.C. Code § 38-73-1095(C), rating plans for property insurance in the coastal and seacoast areas must include discounts or credits for storm shutters, roof tie-downs, construction standards and building codes, among other factors.
• Insurers must tell you about them. § 38-75-755 requires every insurer to disclose, at issue and at every renewal, the available premium discounts and credits for wind-resistant construction.
• The amounts are the insurer's. SCDOI Bulletin 2007-15 says state law "does not specify the discounts or credits insurers must offer". It does name IBHS FORTIFIED construction among the standards rating plans must credit.

So the honest answer to "how much will a FORTIFIED roof save me?" is: it depends on your carrier's filed credits, and you are entitled to see them.

Questions to ask your agent — before construction

• Does my carrier credit an IBHS FORTIFIED Roof designation, SC Safe Home compliance, or both?
• What is the credit on my policy, in dollars or percent?
• Does it apply to the whole premium or only the wind portion?
• Does it stay only while the designation is active? (FORTIFIED designations run five years, and IBHS says many insurers require renewal.)
• Which document do you need — the IBHS certificate, an inspection report, both?
• If my wind coverage is with the SC Wind Pool, which company applies which credit?

Ask for the answer in writing. Your FORTIFIED evaluator's documentation is what you will hand over, so it pays to know the requirement up front.

The SC Wind Pool is not SC Safe Home

The South Carolina Wind and Hail Underwriting Association — the SC Wind Pool — writes wind and hail coverage in a defined coastal territory. It does not run the grant; SCDOI does.

The Wind Pool's dwelling mitigation notice and rates and rules manual list these credits — on Wind Pool policies only:

Read the 20% line carefully. It is written for IBHS's older Fortified … For Safer Living new-construction program. The manual does not name today's FORTIFIED Roof, Silver or Gold designations, so do not budget a 20% Wind Pool credit for a FORTIFIED Roof without written confirmation from the Wind Pool (803-779-8373).

The Wind Pool's territory is also narrower than SC Safe Home's: it writes in parts of Horry, Georgetown, Charleston, Colleton and Beaufort counties only. More in SC Wind Pool vs SC Safe Home.

State tax credit: 25% of retrofit costs, up to $1,000

S.C. Code § 12-6-3660 gives an income-tax credit of 25% of qualifying costs, up to $1,000, for retrofitting your legal residence to resist hurricane, flood and windstorm damage. The qualifying fortification measures are set by SCDOI regulation, and the statute excludes "ordinary repair or replacement of existing items."

Grant money cannot be counted twice. The statute excludes the cost of items paid for with SC Safe Home grant funds that are not included in your taxable income. If the grant covered part of the roof, only the part you paid can support the credit.

Sales-tax credit: up to $1,500

§ 12-6-3665 gives a credit for the South Carolina sales or use tax paid on qualifying materials used to fortify your legal residence, up to $1,500. It is a credit for tax paid, not an extra $1,500 for every roof, and it carries the same exclusion for grant-funded purchases.

Both credits are claimed on SC Form TC-43. SCDOI explains them on its tax-credit page. Keep itemized invoices and proof of payment, and talk to a tax professional before you count either credit in your budget.

Catastrophe savings accounts

South Carolina also allows catastrophe savings accounts: interest-bearing accounts at a state or federally chartered bank whose deposits and interest are free of state income tax when used for hurricane and windstorm deductibles and other uninsured catastrophe costs. They are not a way to pay for a retrofit — a bill to allow that (H.4817) has not passed. See SCDOI's catastrophe savings account page.

Three promises to be wary of

"Your new roof will cut your insurance 20%." Not necessarily. Credits are carrier-specific, and the Wind Pool's 20% line is for a legacy program.

"The state will give you $7,500 plus $2,500 in tax money." No. The grant is a ceiling, not a guarantee, and grant-paid costs come out of the tax-credit math.

"Any Class 4 shingle gets FORTIFIED discounts." No. An impact rating describes one product. FORTIFIED is a documented installation, verified by an evaluator and designated by IBHS. See FORTIFIED Roof vs a Class 4 Shingle.