Best homeowners insurance in North Carolina of 2021
Homeowners insurance is a smart investment to safeguard your property and financially protect you and your family. North Carolina homeowners insurance provides protection for your home, personal belongings and potential liability exposures.
The average premium for homeowners insurance in North Carolina is $1,295 per year, which is slightly below the national average of $1,312. Your cost will depend on numerous rating factors, such as the age and condition of your home and your credit-based insurance score. To find the best homeowners insurance in North Carolina, compare quotes from several companies with the same level of coverage.
The 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 and range of coverage, as well as how third-party organizations rank the carriers.
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||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
|North Carolina Farm Bureau||$982||NA|
Erie Insurance is a super-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.
Learn more: Erie Insurance review
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.
Learn more: Farm Bureau Insurance review
State Farm is one of the most financially strong homeowners insurance companies in North Carolina and maintains an A++ (“Superior”) financial rating from AM Best. State Farm is known for offering comprehensive home insurance coverage, affordable rates and helpful online resources where you can learn more about how insurance works.
Learn more: State Farm Insurance review
Travelers is known for competitive rates that are augmented by a handful of discounts that can lower your rate even more — including a home buyer discount and one for having a green home. You can customize your policy with endorsements for jewelry, furs and other high-value items and add coverage for water backup and sump pump overflow.
Learn more: Travelers 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 ranking in the study due to only being available to military members, veterans and their immediate family members.
Learn more: USAA Insurance review
How much is homeowners insurance in North Carolina?
The average premium cost of homeowners insurance in North Carolina is $1,295 per year for $250,000 in dwelling coverage. North Carolina homeowners insurance is right on par with the national average of $1,312 per year. In comparison to surrounding states, Tennessee’s average is $1,625 and South Carolina’s average is $1,142.
There are several factors that can affect your North Carolina insurance premium such as your home being in a hurricane zone or floodplain. Geographical location aside, your age, gender, marital status, credit-based insurance score and claims history can all impact your insurance rate, according to the Insurance Information Institute (Triple-I).
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 flooding to hurricanes, provide some of the main reasons for home damage and loss. According to the Triple-I, three of the top five most hurricane-prone counties in the U.S. are in North Carolina – Cateret, Dare and Hyde counties.
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:
- Accidental injury sustained by others: This claim type covers the related medical and legal fees if a visitor is injured while on your property.
- Hail and wind: These are damages caused by severe weather events 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.
- 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.
- Fire and lightning: These claims are not the most frequent, but are typically the most expensive. Fires usually result in structural and water damage, while lightning strikes can fry a home’s entire electrical system and lead to a fire.
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: Basic 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. This coverage also includes a separate deductible, typically 1% of your home’s insured 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.
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 include your ZIP code, the age, and size of your home, its rebuild cost, proximity to a fire station, your credit-based insurance score, claims history, marital status, coverages and deductibles you select, as well as discounts available to you.
Are hurricanes and tropical storms covered in my basic homeowners insurance policy?
Hurricanes and tropical storms are not covered in most standard homeowners policies. For these, you will usually need to get extended coverage.
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 2021 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).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.