Sky Noir Photography by Bill Dickinson

Homeowners insurance isn’t just required by law – it’s also a smart investment to safeguard your property. Anything that happens on your property, whether to your home or someone visiting your home, is your legal responsibility. These features will vary based on the specifics of your property.

The average premium for homeowners insurance in North Carolina is $1,098 per year. On average, homeowners file an insurance claim roughly every ten years. In North Carolina, these are most commonly claims related to storms. Because of this, there are some things you’ll want to make sure you get coverage for in your policy. If your home is within, or near, locations that commonly experience hurricane damages, you’ll want to make sure and get coverage for these types of storms. The same goes for hail and wind damage as these impacts can spread further inland and even occur independently of hurricanes and tropical storms.

Five best home insurance companies in North Carolina

  • Farm Bureau – Chosen for best farmhouse and ranch coverage.
  • Amica Mutual – Chosen for excellent consumer and credit ratings.
  • State Farm – Chosen for top scores and breadth of coverage types.
  • Erie Insurance – Chosen for the overall best aggregate score.
  • USAA – Chosen for excellent consumer and credit ratings.
Carrier Rating Why?
American Family #1 Choice for Renters Insurance Its affordability, paired with its unrivaledcustomer-service interaction, policy offerings…more below
State Farm Best for Most People It has a huge share of the market, rock-solid financialstanding and low premiums…more below
USAA Best Overall If You Qualify Must be enlisted or have served in the United Statesmilitary, but if you qualify, it’s hard to find a better option on thenational market…more below
Allstate Best for Online Resources& Digital Experience The premiums are at or below average, but if you live in ahigh-risk area, the policies can be far more expensive than othercompanies…more below
Nationwide Best for Discounts It has coverage for medical payments to others, personalliability, credit card coverage for unauthorized usage…more below

If you’re interested in seeing how homeowners insurance companies rank on the national playing field, take a look at our list of the best homeowners insurance companies of 2019.

When analyzing insurance plans and companies there are a few guidelines that are tried and true. To pick these five insurance companies we looked for competitive rates and range of coverage; then, we cross-referenced that with the Better Business Bureau ranking system, the J.D. Power 2018 Home Insurance Study, the AM Best rating system, and information from iii.org.

For some of these companies, like Farm Bureau, rating information can be hard to obtain as they are predominantly a specialty insurer. In the case of Farm Bureau, they specialize in the insuring of farmhouses and ranches.

Average homeowners insurance cost in North Carolina

You may be asking, “just how much is home insurance?” According to research done by iii.org, the average premium cost of homeowners insurance in North Carolina in 2016 was $1,098. The home insurance quotes were calculated using Zillow.com’s median home sale price in NC of $204,000.

Company Annual premium fora home worth $204,000
USAA $796
Erie Insurance $812
Amica Mutual $831
State Farm $974
Farm Bureau $1,029

Common causes of home insurance losses in North Carolina

  • Wind and flooding damage from hurricanes and tropical storms.
    • This is specifically damaged caused by storms that have been named and labeled as either a tropical storm or a hurricane.
  • Hail and wind damage, not including tropical storms and hurricanes.
    • These are specifically damages caused by storms that have not been named and labeled as tropical storms or hurricanes.
  • Hail and wind damage, not including tropical storms and hurricanes.
    • These are specifically damages caused by storms that have not been named and labeled as tropical storms or hurricanes.
  • Theft and burglary of property.
    • This applies to objects taken from your property without your consent.
  • Accidental Injury sustained by others.
    • This claim type is to cover the related medical and legal fees if a visitor sustains an injury while on your property.

Key home insurance coverage options in North Carolina

Due to the threats of tropical storms and hurricanes in NC, you’ll likely want flood and windstorm coverage, especially if you live near the coast or a floodplain. This coverage kicks in specifically once a storm has reached the point where it receives a name and is labeled either as a hurricane or tropical storm. Once that happens, most basic coverage will no longer apply to damages caused by these storms.
To deal with the possible losses from these storms, you may need to add specific wind, flood and hail damage coverages onto your policy. With these perils in mind, you may want to focus on the HO-3 with an additional flood coverage package added to the policy. Flood insurance is typically an add-on coverage available through the National Flood Insurance Program

Common home insurance coverage types

  • HO-2 : A form of basic coverage, this covers eleven specific kinds of damage to your home. These are windstorms and hail; explosion; aircraft; vehicles; vandalism and malicious mischief; riots and civil commotion; smoke; fire and lightning; theft; glass that is part of the home; and volcanic eruptions. This type also covers damage from falling objects; and water damage from accidental overflow of plumbing, heating, air-conditioning, and household appliances.
  • HO-3 : This is an extended policy option has among the broadest range of coverage. It is one of the most common types of policy. It covers the previously mentioned perils from the HO-2, as well as many other forms, usually only excluding specifically mentioned perils such as flood, sinkholes, nuclear accident, earthquake, landslide or mudslide.
  • HO-5 : This a more comprehensive version of the HO-3, with coverage of more perils—though still excluding the individually listed ones. While it has a greater range of coverage, it runs a higher premium as a result.

Frequently asked questions

What is the cheapest homeowners insurance in North Carolina?

USAA offered the cheapest basic home insurance package in North Carolina with an annual rate of $796 for a $204,000 home.

Are hurricanes and tropical storms covered in my basic homeowners insurance policy?

Hurricanes and tropical storms are not covered in most basic policies. For these, you will usually need to get extended coverage.

If I take good care of my property, why do I need insurance?

Homeowner’s isn’t just required by law to help the insurance companies make a profit; it is an authentic and essential safety net for your property and your finances. No one can fully predict what damages might occur, or how much it might cost. When something unexpected happens, and you can’t cover the expenses it causes, your insurance is there to help.