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Best homeowners insurance in North Carolina for 2022

Updated Dec 05, 2022
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How Bankrate chose the best home insurance companies in North Carolina

To help you find the best North Carolina homeowners insurance, Bankrate first assessed average rate data from Quadrant Information Services. We then analyzed coverage offerings and discounts, as well as how third-party organizations, including J.D. Power and AM Best, rank the carriers for customer service and financial strength. We compiled this information into a Bankrate Score. The better a company performed in each category, the higher its Bankrate Score, for a maximum score of 5.0 out of 5.0. Utilizing our Bankrate Score can help provide a quick picture of which insurance companies may be worth requesting quotes from during your home insurance search.

Best home insurance companies in North Carolina

After researching proprietary rate data provided by Quadrant Information Services, third-party scores from the J.D. Power 2022 U.S. Home Insurance Study and other important metrics, we chose USAA, North Carolina Farm Bureau, State Farm, Erie and Travelers as some of the best North Carolina homeowners insurance companies. If you’re shopping for North Carolina home insurance, you may want to get quotes from these carriers. Let’s dive a bit deeper into how these companies compare.

USAA
Rating: 4.8 stars out of 5
4.8
Bankrate Score
Info Hover for more
J.D. Power
884
/1,000
AM Best
A++
Average monthly premium
$133
Average annual premium
$1,598
Get a quote
North Carolina Farm Bureau
Rating: 4.7 stars out of 5
4.7
Bankrate Score
Info Hover for more
J.D. Power
Not rated
AM Best
A
Average monthly premium
$85
Average annual premium
$1,021
Get a quote
State Farm
Rating: 4.7 stars out of 5
4.7
Bankrate Score
Info Hover for more
J.D. Power
829
/1,000
AM Best
A++
Average monthly premium
$92
Average annual premium
$1,098
Read review
Erie
Rating: 4.6 stars out of 5
4.6
Bankrate Score
Info Hover for more
J.D. Power
827
/1,000
AM Best
A+
Average monthly premium
$123
Average annual premium
$1,509
Get a quote
Travelers
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info Hover for more
J.D. Power
791
/1,000
AM Best
A++
Average monthly premium
$87
Average annual premium
$1,043
Get a quote
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

*Average rates are for annual policies with $250,000 in dwelling coverage
USAA not officially ranked with J.D. Power due to eligibility restrictions

Best home insurance company for military-focused coverage

J.D. Power:
884 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,598
USAA Insurance review

Explore Bankrate's review

Best home insurance company for local knowledge

J.D. Power:
Not rated
AM Best:
A
Avg. annual premium for 250k dwelling
$ 1,021

Best home insurance company for local offices

J.D. Power:
829 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,098
State Farm Insurance review

Explore Bankrate's review

Best home insurance company for optional coverage

J.D. Power:
827 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,509
Erie Insurance review

Explore Bankrate's review

Best home insurance company for potential discounts

J.D. Power:
791 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,043
Travelers Insurance review

Explore Bankrate's review

How much is homeowners insurance in North Carolina?

The average cost of homeowners insurance in North Carolina is $1,317 per year for $250,000 in dwelling coverage. North Carolina homeowners insurance is, on average, slightly cheaper than the national average of $1,383 per year. North Carolina’s average annual home insurance rate falls between surrounding states’ rates, with Tennessee’s average at $1,644 annually and South Carolina’s average at $1,165 annually. The average rates in this state may be due to the fact that so much of the state is inland. Coastal states often see higher rates due to higher likelihoods of damage, but a large percentage of North Carolina is inland and therefore doesn’t experience severe damaging weather as often.

There are several factors that can affect your North Carolina insurance premium, like being in a more populated area with higher crime rates or in a hurricane zone. Geographical location aside, your marital status, credit-based insurance score and claims history might all impact your insurance rate, depending on your state’s regulations.

Home insurance in North Carolina

Homeowners may want to consider North Carolina’s weather conditions when searching for home insurance. If your home is located along the coast, there is a higher likelihood that severe weather events, including wind damage, hail and hurricanes, may cause home damage, and other parts of the state may also experience similar weather events. According to the Insurance Information Institute (Triple-I), an estimated 780,462 single-family homes in North Carolina could be at risk due to storms ranging from a Category 1 to a Category 5. Estimated reconstruction costs for these homes could top $172.3 billion. 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, parts of North Carolina suffer from frequent hail storms, tornadoes and other windstorms. Areas of the state may experience downed trees, damaged power lines and hail damage on a regular basis. The most common losses include:

  • Hail and wind: These are damages caused by severe weather events that have not been named and labeled as tropical storms or hurricanes. Storm season typically runs from June to November in North Carolina, creating a large window for possible damage.
  • 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. Based on the Federal Emergency Management Agency’s (FEMA’s) Declared Disasters tracker, these weather patterns have been a moderate threat in North Carolina for the last few years, with one declared disaster in 2021 and four in 2020.
  • Fire and lightning: These claims are not the most frequent but can be expensive. Fires usually result in structural damage, and water damage from firefighters can be a concern too. Additionally, fire by lightning strikes can damage a home’s entire electrical system and lead to damage.

Home insurance coverage options in North Carolina

Standard home insurance policies cover your home, detached structures, personal belongings and liability exposure, but you may want to consider additional coverage for more robust protection.

  • Flood insurance: Standard 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 some 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. If included in your policy, this coverage may come with a separate deductible, typically 1% of your home’s insured dwelling 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. While major earthquakes aren’t incredibly common in the state, without the endorsement, there is typically no coverage for earthquake damage on most North Carolina homeowners insurance policies.

Frequently asked questions

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute