In North Carolina, the average cost of $250k in dwelling coverage is $1,409 per year, according to Bankrate’s current study of quoted annual premiums. Homeowners insurance is a smart investment to safeguard your property and financially protect you and your family. It may even be required by your lender if you have a mortgage plan. North Carolina homeowners insurance provides protection for your home, personal belongings and potential liability exposures.
How much you pay for homeowners insurance is based on several factors, including your ZIP code and the age and condition of the home. To find the best homeowners insurance in North Carolina, compare quotes from several companies with the same level of coverage.
Best home insurance companies in North Carolina
When analyzing North Carolina home insurance, there are a few guidelines from insurance experts that are tried and true. To pick these five insurance companies, Bankrate assessed competitive rates sourced from Quadrant Information Services and range of coverage, as well as how third-party organizations rank the carriers for customer service and financial strength. The better a company performed in each category, the higher its Bankrate Score, for a maximum score of 5 out of 5. Utilizing our Bankrate Score can help provide a quick picture of which insurance companies may be worth requesting quotes from during your home insurance search.
If you are interested in seeing how the best home insurers in North Carolina rank on the national playing field, take a look at our list of the best homeowners insurance companies of 2021 in the Tar Heel State.
|Home insurance company||Bankrate Score||Average annual home insurance premium for $250,000 in dwelling coverage||J.D. Power score|
|North Carolina Farm Bureau||5||$1,047||Not rated|
*Not officially ranked with J.D. Power due to eligibility restrictions
North Carolina Farm Bureau
If you are a member of the North Carolina Farm Bureau, you have access to home insurance through the organization. Specializing in farm and ranch coverage, the Farm Bureau also covers standard homes. A policy with the Farm Bureau is a great way to support other agriculturists in the state while benefiting from the range of insurance products. While you can manage your policies online at Farm Bureau’s website, its mobile app is not highly rated in either the Android or App Store.
Learn more: Farm Bureau Insurance review
USAA homeowners insurance in North Carolina provides comprehensive coverage for your home and property at a competitive price. The company earned a high customer satisfaction score from J.D. Power, but is disqualified from official ranking in the study due to its membership eligibility restrictions. USAA insurance is available to military members, veterans and their eligible immediate family members.
Learn more: USAA Insurance review
Erie is a regional carrier that specializes in providing homeowners insurance for East Coast residents in 12 states and Washington, D.C. The company offers the standard range of property coverages and discounts but adds a couple of unique features. Erie includes animal coverage up to $500 and optional coverage for computer and equipment breakdowns. Although Erie is highly rated, its Bankrate Score also reflects its limited state availability and average home insurance premium, which was the second-highest on this list.
Learn more: Erie Insurance review
Travelers is known for competitive rates that are complemented by a handful of discounts that may lower your rate even more — including a home buyer discount and one for having a green home. You can personalize your policy with endorsements for jewelry, furs and other high-value items and add coverage for water backup and sump pump overflow. While coverage comes at a premium lower than the state average, it may be worth considering that Travelers ranked near the bottom for customer satisfaction in the 2021 J.D. Power Home Insurance Study, indicating that some policyholders may have been left feeling dissatisfied with its service.
Learn more: Travelers Insurance review
How much is homeowners insurance in North Carolina?
The average premium cost of homeowners insurance in North Carolina is $1,409 per year for $250,000 in dwelling coverage. North Carolina homeowners insurance is slightly higher than the national average of $1,393 per year. North Carolina’s average annual home insurance rate falls between surrounding states’ rates, with Tennessee’s average at $1,745 annually and South Carolina’s average at $1,235 annually.
There are several factors that can affect your North Carolina insurance premium, like being in a more populated area with higher crime rates or in a hurricane zone. Geographical location aside, your age, gender, marital status, credit-based insurance score and claims history might all impact your insurance rate, depending on your state’s regulations.
Home insurance in North Carolina
Homeowners should consider North Carolina’s weather conditions when searching for home insurance. Severe weather events, from wind damage to hail to hurricanes, provide some of the main reasons for home damage and loss. According to the Insurance Information Institute (Triple-I), an estimated 780,462 single-family homes in North Carolina could be at risk due to storms ranging from a Category 1 to a Category 5. Estimated reconstruction costs for these homes could top $172.3 billion. Below are a few important factors for North Carolina residents to keep in mind when shopping for homeowners coverage:
Common causes of loss in North Carolina
Besides the threat of hurricanes and tropical storms, North Carolina suffers from frequent hail storms, tornadoes and other windstorms. It is so common that Citizens Time reports rolling storm damage in real-time. The state experiences downed trees, power lines and hail damage on a regular basis. The most common losses include:
- Hail and wind: These are damages caused by severe weather events that have not been named and labeled as tropical storms or hurricanes. Storm season typically runs from June to November in North Carolina, creating a large window for possible damage.
- Hurricane wind and flooding: This category of damage is caused by storms that have been named and labeled as either a tropical storm or a hurricane. Based on FEMA’s Declared Disasters tracker, these weather patterns have been a frequent threat in North Carolina for the last few years, with one declared disaster in 2021 and four in 2020.
- Fire and lightning: These claims are not the most frequent, but are typically the most expensive. Fires usually result in structural and water damage and can be caused by human error as well. Additionally, fire by lightning strikes can fry a home’s entire electrical system and lead to damage.
Home insurance coverage options in North Carolina
If you have the appropriate level of coverage, according to insurance experts, your home insurance in North Carolina should cover your property, personal belongings and liability. However, with the common causes of loss from weather-related disasters in North Carolina, there are some additional coverages for homeowners that might be worth considering:
- Flood insurance: Standard homeowners insurance does not cover flood damage, so you will need to obtain flood insurance separately if you want it. Flood insurance is available through FEMA’s National Flood Insurance Program and private flood insurers.
- Windstorm and hail: Depending on where you live in the state and your insurance company, windstorm and hail coverage may be excluded from your standard coverage. Some homeowners may need to purchase a separate windstorm and hail policy. If included in your policy, this coverage may come with a separate deductible, typically 1% of your home’s insured dwelling value.
- Earthquake damage: An earthquake endorsement can cover repairs needed due to earthquake damage and may cover other structures not attached to your house, like a garage or shed. It can also insure your personal property, the cost to remove debris and extra living expenses you may have while your home is being rebuilt or repaired after an earthquake. While major earthquakes aren’t incredibly common in the state, without the endorsement, there is typically no coverage for earthquake damage on most North Carolina homeowners insurance policies.
Frequently asked questions
What is the cheapest homeowners insurance in North Carolina?
The cheapest home insurance provider for you will depend on numerous rating factors. These factors typically include your home’s size, age and rebuild cost, proximity to a fire station, your ZIP code and other personal factors. If any discounts are available to you from your provider, your premium may be reduced.
Are hurricanes and tropical storms covered in my basic homeowners insurance policy?
Hurricanes and tropical storms are not always covered in standard homeowners policies, but this varies by company. Some coastal areas exclude coverage for hurricanes and tropical storms in North Carolina. Check with your insurance company to find out if these perils are covered under your basic homeowners insurance policy.
Does my homeowners policy include additional living expenses?
Most standard homeowners policies in North Carolina include additional living expenses (ALE) coverage, also known as loss of use coverage. ALE pays for your cost of living away from home – above and beyond your customary expenses – if you cannot live at home due to damage caused by a covered claim that makes your home temporarily uninhabitable.
If I take good care of my property, why do I need insurance?
Homeowners insurance provides financial peace of mind for you and your family. No one can fully predict what damages might occur, or how much they might cost. When something unexpected happens, and you cannot cover the expenses it causes, insurance can protect you from financial devastation.
Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
City rates are based on 2021 premium data for $250,000 in dwelling coverage.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
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