T
he Greenville real estate market is facing a new challenge: home insurance claims are being denied at an alarming rate. According to Angela Rodriguez, broker-in-charge and owner of Encore Realty, seeking insurance coverage used to be a straightforward process, but since Hurricane Helene, it's become a major hurdle in closing deals. Large insurance corporations are prioritizing risk management and using artificial intelligence to analyze claims, which has led to automatic denials for homes over 20 years old.

    Rodriguez cited an example of a client who couldn't secure insurance due to their home being more than 20 years old, despite having a relatively new roof. "It's not impossible, but it's hard and getting harder," she said. Clients are now faced with options such as opting for new construction, paying higher premiums, or using credit cards.

    Private insurance broker Stephen Piper attributed the issue to inflation and rising costs of labor and materials. Existing homeowners insurance rates have skyrocketed since 2021, leaving buyers with limited options. Rodriguez recommends that prospective buyers work ahead by getting an insurance quote before submitting an offer, considering roof certification or tree branch trimming, and working with local insurance brokers.

    Rodriguez hopes that higher wages and inventory can help balance out the issue, which she describes as a "perfect storm." She advises first-time homebuyers and young movers to be prepared for the challenges ahead.