Best homeowners insurance in North Carolina of 2021
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. Your North Carolina homeowners insurance protects you from damage to your home and liability concerns.
The average premium for homeowners insurance in North Carolina is $1,515 per year, which is slightly above the national average of $1,477. Your rate will depend on personal factors, such as the age and condition of your home and your credit rating.
The best home insurance companies in North Carolina
When analyzing North Carolina home insurance, 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 as well as how third party organizations rank the providers. 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.
If you’re interested in seeing how the best home insurance in North Carolina ranks on the national playing field, take a look at our list of the best homeowners insurance companies of 2021.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
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.
Learn more: Erie Insurance review
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.
Learn more: Farm Bureau Insurance review
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.
Learn more: State Farm Insurance review
Travelers gave us the lowest home insurance quote for our sample home, and it 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 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.
Learn more: USAA Insurance review
Average cost of homeowners insurance in North Carolina
The average premium cost of homeowners insurance in North Carolina in 2020 was $1,515. North Carolina homeowners insurance is in the midrange as far as pricing goes; its average is 3% higher than the national average of $1,477. In comparison to surrounding states, Tennessee’s average is $1,670 and South Carolina’s average is $1,532.
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 score, and claims history can all impact your insurance rate.
Home insurance considerations in North Carolina
Homeowners should consider North Carolina’s weather conditions when searching for home insurance. The weather conditions, from wind damage to flooding to hurricanes, provide some of the main reasons for home damage and loss. According to the Insurance Information Institute, of the 11 most hurricane-prone counties, two are in North Carolina.
Below are a few important factors for North Carolina residents to keep in mind.
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 want to add specific wind, flood and hail damage coverages onto your policy. Flood insurance is typically an add-on coverage available through the National Flood Insurance Program.
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 has experienced downed trees, power lines and hail damage on a regular basis. The most common losses include:
- 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.
- 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.
- 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.
- 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 the entire electrical system and lead to a fire.
Common coverages in North Carolina
More times than not, if your home is damaged or destroyed, your policy’s hazard insurance will cover it. With personal property, liability, and other standard coverages, you’re more than likely covered for most situations. However, with the common causes of loss from weather-related disasters in North Carolina, there are recommended additional coverages for homeowners:
- 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 the National Flood Insurance Program.
- 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.
- 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.
Frequently asked questions
What is the cheapest homeowners insurance in North Carolina?
The cheapest home insurance provider for you will depend on your ZIP code, personal factors like credit history and 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 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 they might cost. When something unexpected happens, and you cannot cover the expenses it causes, your insurance is there to help.
Bankrate utilizes Quadrant Information Services to analyze 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 may be different.