The best North Carolina home insurance companies of 2020

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Homeowners insurance is 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. Your rate will depend on personal factors.

On average, homeowners file an insurance claim roughly every ten years. In North Carolina, these are most commonly claims related to storms. Storm damage from floods and wind are more common than you think. Homeowners may wake up to discover downed power lines and trees now and then. Because of this, there are some things to make sure you get coverage for in your policy.

If your home is within, or near, locations that commonly experience hurricane damages, make sure to get coverage for storms, hail and wind damage and find a North Carolina insurance provider that will meet all your needs.

The best home insurance companies in North Carolina

  • Amica Mutual: Chosen for excellent consumer and credit ratings.
  • Erie Insurance: Chosen for the overall best aggregate score.
  • Farm Bureau: Chosen for best farmhouse and ranch coverage.
  • State Farm: Chosen for top scores and breadth of coverage types.
  • USAA: Chosen for excellent consumer and credit ratings.
J.D. Power rating AM Best Rating BBB rating
Amica Mutual 902/1,000 A+ A+
Erie 885/1,000 A- A+
Farm Bureau NR A A+
State Farm 878/1,000 A++ A+
USAA 904 A+ A+

Amica Mutual

Customers in the J.D. Power satisfaction study gave Amica Mutual the highest rating. Amica has a variety of coverages and savings for homeowners, regardless of whether they live in the mountains or coasts. If you sign up for a dividend-paying policy, you can apply the small annual income towards your homeowners insurance North Carolina premiums.

Erie Insurance

Erie Insurance specializes in insurance for east coast residents in 12 states. The company provides the standard range of coverage and discounts but adds a couple of unique features. Erie includes animal coverage up to $500 and optional coverage for computer and equipment breakdowns.

Farm Bureau

If you are a member of the North 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.

State Farm

State Farm has an A++ rating from AM Best, which means means State Farm is one of the most financially stable homeowners insurance companies in North Carolina. State Farm is known for offering good home insurance coverage, affordable rates and helpful online resources where you can learn more about how insurance works.

USAA

USAA homeowners insurance North Carolina provides comprehensive coverage for your home and property at a competitive price. The company usually ranks at the top of the best homeowners insurance North Carolina companies, but is only available to military members and their families.

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 2020.

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 2020 Home Insurance Study, the AM Best rating system and information from iii.org.

For some of these companies, rating information can be hard to obtain as they are predominantly a specialty insurer. For example, Farm Bureau specializes in insuring farms and ranches.

Average homeowners insurance cost in North Carolina

The average premium cost of homeowners insurance in North Carolina in 2017 was $1,086. North Carolina homeowners insurance is in the midrange as far as pricing goes and ranks 28th in the country for the cost of home insurance.

Common causes of home insurance losses in North Carolina

Besides the threat of hurricanes and tropical storms, North Carolina suffers from frequent hail, tornadoes and other windstorms. It is so common that Citizens Time reports rolling storm damage in real-time. To date, the state experienced downed trees, power lines and hail damage in just one day. The most common losses include:

  • Wind and flooding: This type of damage is specifically damage caused by storms that have been named and labeled as either a tropical storm or a hurricane.
  • Hail and wind: These are specifically damages caused by storms that have not been named and labeled as tropical storms or hurricanes.
  • Theft and burglary: 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 is injured 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.

Get several insurance quotes North Carolina to find the best coverage at a price you can afford. 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

Frequently asked questions

What is the cheapest homeowners insurance in North Carolina?

The cheapest provider for you will depend on your ZIP code, personal factors like credit history and discounts available to you. However, if you qualify, USAA is likely to be the most affordable option.

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?

Homeowners insurance 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 cannot cover the expenses it causes, your insurance is there to help.