Best cheap homeowners insurance in Raleigh

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The Raleigh housing market is projected to continue to be strong, since the city is located in North Carolina’s Research Triangle of emerging tech-startup cities. Homebuyers have probably seen the influx of new residents, due to reports naming Raleigh as one of the top emerging rental markets in the country.

Protecting your appreciating investment is essential. After all, Raleigh is vulnerable to hurricanes, flooding and tornadoes, which can be catastrophic. The average cost of homeowners insurance in Raleigh is $1,247 per year for $250K in dwelling insurance, according to quoted annual premiums. Home insurance in Raleigh, North Carolina is a way to financially safeguard your home against nature and other circumstances outside of your control.

Home insurance gives you the financial backing of an insurance carrier if you need to replace, repair or rebuild your home or its belongings. Even though rates in this city are lower than the national average cost for the same amount of coverage, Raleigh homeowners may be looking for the best deal. Here are five of the top home insurance companies in Raleigh, North Carolina, chosen based on low premiums and high levels of customer service.

Best cheap home insurance companies in Raleigh

Bankrate’s study of national and regional home insurance rates returned premiums for the top home insurance companies in Raleigh by market share. To narrow down the list even further for the sake of comparison, we also looked at what types of homeowners policies the companies offered and evaluated 2020 J.D. Power ratings for each, based on customer reviews.

Home insurance company Average annual premium for $250k dwelling coverage J.D. Power score
Kemper $774 NR
Travelers $873 803/1,000
Erie $1,390 839/1,000
Nationwide $1,421 808/1,000
USAA $1,427 889/1,000

Kemper

Kemper Insurance may be the first stop for homeowners on a tight budget. The average annual premium of $774 is well below the city’s average rate of $1,247 per year. Even homeowners in the pricier historic downtown Raleigh may find affordable coverage with Kemper, although your rates will vary based on your home’s value and other factors unique to you.

To keep it simple, Kemper provides customers packages of homeowners insurance called Kemper Prime Home Essential, Enhanced and Elite. Depending on the level of coverage you are in search of, you could start with Essential, the entry-level product. For more complete financial protection, the other two tiers provide higher limits and addons included in the cost, such as water backup and replacement cost.

Learn more: Kemper Insurance Review

Travelers

Travelers insurance is well-known to Raleigh and other North Carolina residents for vehicle coverage, but a homeowners insurance policy is also an affordable choice, based on quoted rates. Policyholders pay an average of $883 per year for home insurance in Raleigh. To get the best rates from the carrier, you might consider bundling policies for your home and your car. Bundling can also include boat and yacht insurance for those who enjoy watercraft.

Learn more: Travelers Insurance Review

Erie

Erie Insurance is the third-cheapest carrier in Raleigh based on rates evaluated by Bankrate, and has a solid local presence, with 20 offices in town. As an added feature, all Erie homeowners insurance policies include guaranteed replacement cost, which is typically an optional add-on with home insurance companies.

Guaranteed replacement cost pays out the full value to replace items due to a covered hazard or peril. Unlike most cash-value insurance policies which deduct the age and condition of the items in the claim, guaranteed replacement cost allows you to purchase a new version of the item.

Learn more: Erie Insurance Review

Nationwide

Nationwide Insurance is available in Raleigh through independent agents. There are 42 available to help you with everything from obtaining quotes to filing a home insurance claim. Nationwide has unique optional coverages to offer Raleigh homeowners, as well. For example, Better Roof Replacement allows you to upgrade your roof after a claim using longer-lasting materials. While many Raleigh residents may prefer asphalt roof shingles, Nationwide policyholders can choose from better materials the next time their roof needs work, should they choose to upgrade.

Learn more: Nationwide Insurance Review

USAA

Military personnel currently or formerly stationed in eight of the military bases in North Carolina (or elsewhere) may be eligible for affordable home insurance through USAA. The membership-based association allows veterans, retired and active-duty military (and families) to access coverage that comes loaded with extras at no charge.

HO-3 policies from USAA include identity theft protection and replacement cost coverage. In addition, Raleigh residents who are required to have flood insurance by their lender due to the zone their house is in can find coverage through USAA.

Learn more: USAA Insurance Review

Home insurance coverage options in Raleigh

Raleigh’s neighborhoods are fairly safe, especially areas such as Leesville, Bayleaf and Ten Ten Road. However, not all areas enjoy the same level of tranquility, making it necessary to have the proper amount of coverage for personal property in case of burglary. Other hazards Raleigh residents should look out for include floods. There are three major rivers that run through the city and areas designated as floodplains. Some coverages Raleigh residents should consider adding include:

  • Scheduled personal property: Items such as gold or diamond jewelry, electronics valued at over $1,000 or collectibles may need to be named on the policy separately for their full value to be accounted for. In case of break-in, these are the most expensive to replace.
  • Flood insurance: Raleigh is one of the country’s leaders in building homes in areas at risk for flood. Due to the increased likelihood that flash flooding or severe storms could cause extensive water damage, flood insurance could provide valuable financial protection against the hazard.
  • Water backup: Flooding is not the only type of water damage not covered by a standard policy. Damage from a failing sump pump or backed up sewer is not typically covered unless you purchase the add-on, and damage could create expensive bills if you need to fix and replace ruined and contaminated personal property.

Home insurance discounts in Raleigh

Home insurance in North Carolina averages $1,515 per year for $250K in dwelling coverage, with Raleigh rates coming in lower at $1,247 annually based on rates from Quadrant Information Services. However, you can potentially find even more competitive rates by comparing quotes from the cheapest home insurance providers, factoring in what discounts might save you the most. These can include:

  • Advance discount: Carriers prefer that policyholders do not lapse in home insurance coverage. Renewing a home insurance policy in advance may qualify you for a discount.
  • Bundling: Buying multiple policies, such as car and home insurance with one carrier could lower your premiums.
  • Home renovation: Raleigh’s historic neighborhoods such as Oakwood and Mordecai Place feature a variety of Victorian homes and bungalows of other styles. Upgrading plumbing, wiring and other features could potentially qualify you for an additional discount.
  • Protective devices: Securing your home can give you peace of mind, as well as help you save on coverage. Adding an alarm system, smoke and carbon monoxide detectors and deadbolt locks are just a few ways to reduce your premiums with some home insurers.

Of the discounts mentioned for Raleigh residents, bundling may provide the most sizable reduction. You could see a discount in all the coverages bundled, not just the homeowners portion.

Frequently asked questions

What is the best home insurance company in Raleigh?

To get the best home insurance rates in Raleigh for your situation, comparing quotes is essential. The best home insurance companies in Raleigh according to Bankrate (based on price and customer ratings) are USAA, Nationwide, Erie, Kemper and Travelers.

How much does home insurance Raleigh, NC cost?

Bankrate’s study found that home insurance in Raleigh, North Carolina averages $1,247 per year for $250K in dwelling coverage, lower than North Carolina’s average premiums of $1,515 per year.

Methodology

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.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Edited by
Insurance Editor