Best Homeowners Insurance in North Carolina: Homeowners insurance is one of those things you don’t think much about—until you need it. Whether you’re dealing with storm damage, theft, or a kitchen fire, the right homeowners insurance policy can save you from devastating financial losses. In North Carolina, where hurricanes and coastal weather can pose serious risks, having robust homeowners insurance is not just a smart idea—it’s essential.
In this guide, we’ll walk you through the best homeowners insurance options in North Carolina, what they cover, and how you can get a free quote tailored to your needs.
Understanding Homeowners Insurance
Before diving into specific providers, it’s important to understand what homeowners insurance actually is. Simply put, homeowners insurance is a type of property insurance that protects your home and belongings from damage or theft. It also provides liability coverage in case someone gets injured on your property.
A typical policy covers:
- Dwelling Protection: The structure of your home
- Personal Property: Items inside your home, like furniture, electronics, and clothing
- Liability Coverage: Legal and medical expenses if someone is injured on your property
- Additional Living Expenses: If you need to live elsewhere temporarily while your home is repaired
Why Homeowners Insurance is Essential in North Carolina
North Carolina homeowners face a unique set of risks, particularly in coastal areas. Hurricanes, tropical storms, and flooding are common occurrences, and the damage they cause can be extensive. Without adequate insurance, you could end up shouldering thousands of dollars in repair costs. Moreover, mortgage lenders typically require homeowners insurance to protect their investment, so if you have a home loan, you’re likely obligated to carry coverage.
Types of Homeowners Insurance Policies in North Carolina
There are different types of homeowners insurance policies designed for various needs. Here’s a quick breakdown:
- HO-1 (Basic Form): Limited coverage, not common in NC.
- HO-2 (Broad Form): Covers more perils but still somewhat limited.
- HO-3 (Special Form): The most popular option, covers all perils unless specifically excluded.
- HO-5 (Comprehensive Form): Provides the broadest coverage, often used for high-value homes.
- HO-6 (Condo Insurance): Covers condos and typically insures the interior of the unit.
- HO-8 (Older Home Insurance): Tailored for older homes that might cost more to repair.
Coverage Options in North Carolina
In North Carolina, specific coverage is essential given the state’s natural disaster risks:
- Flood Insurance: Since flooding is a common issue, you’ll need a separate policy for flood damage, as it’s not included in standard homeowners insurance.
- Hurricane Insurance: Coverage for wind and hail damage is crucial, particularly for coastal properties.
Factors Affecting Homeowners Insurance Rates in North Carolina
Your homeowners insurance rates will depend on several factors:
- Location: Coastal homes tend to have higher premiums due to hurricane and flood risks.
- Home Characteristics: Older homes or those made with expensive materials may cost more to insure.
- Your History: If you have a history of claims or a low credit score, insurers may charge higher rates.
- Discounts: Many insurers offer discounts for bundling policies (like home and auto) or installing security systems.
Top Homeowners Insurance Providers in North Carolina
Here are some of the top insurance providers in North Carolina:
- Nationwide: Known for comprehensive coverage options and excellent customer service.
- State Farm: A great option for those looking for personalized service and a variety of discounts.
- Allstate: Offers plenty of coverage add-ons, including flood and windstorm protection.
- North Carolina Farm Bureau: Popular among residents for competitive rates and local expertise.
- USAA: An excellent choice for military families, offering competitive rates and excellent customer service.
- Erie Insurance: Known for its high customer satisfaction and affordable premiums.
Cheapest Home Insurance Companies in North Carolina
Homeowners insurance rates in North Carolina differ based on the insurance company you choose. Safeco offers the best deal on home insurance in North Carolina, at just $659 yearly. This compares favorably to the state average cost of $1,166, providing a $507 price break on rates typical to the state.
Begin your search for affordable homeowners coverage by reviewing the best North Carolina insurance companies, listed below. Or, check out the results of The Zebra’s Customer Satisfaction Survey featured in our guide to the best home insurance companies.
AFFORDABLE HOME INSURERS IN NORTH CAROLINA
| Insurance Company | Average Yearly Rate in North Carolina |
| Safeco | $659 |
| North Carolina Farm Bureau | $1,249 |
| Liberty Mutual | $1,297 |
| State Farm | $1,443 |
| Nationwide | $1,841 |
North Carolina Home Insurance Prices by Coverage Levels
The level of home coverage you select has an impact on your insurance premiums. In North Carolina, maintaining $100K dwelling coverage costs an average of $706 per year, while carrying dwelling coverage up to $400K costs $2,071 per year.
POPULAR COVERAGE LIMITS IN NORTH CAROLINA
| Coverage Level | Average Annual Cost |
| $100,000 Dwelling | $706 |
| $200,000 Dwelling | $1,166 |
| $250,000 Dwelling | $1,430 |
| $400,000 Dwelling | $2,071 |
Homeowners Insurance Deductibles in North Carolina
Homeowners have a lot of choices to make when deciding on a homeowners policy, including how high or low to set their deductible. The deductible is the total amount that the insured contributes toward a covered loss. Where you set your deductible can play a significant role in the cost of your insurance coverage.
In short, having a higher deductible leads to lower insurance premiums. Therefore, consider a higher deductible if you aim to lock in lower home insurance premiums. Remember that your deductible should only be set as high as you can reasonably afford in the event of a covered loss.
The chart below displays the average premium costs associated with standard homeowners deductibles.
HOME INSURANCE PREMIUMS BY DEDUCTIBLE IN NORTH CAROLINA
| Deductible Tier | Average Annual Homeowners Insurance Rate |
| $500 | $1,633 |
| $1,000 | $1,430 |
| $1,500 | $1,330 |
| $2,000 | $1,124 |
| $5,000 | $976 |
North Carolina Homeowners Insurance Costs by City
Home insurance rates in North Carolina vary depending on the city. Rates depend on locally specific variables such as the number of claims filed in the immediate area, meaning your specific ZIP code impacts how much you pay.
The best home insurance rates in North Carolina are available in Alexander. An average home insurance policy in Alexander costs $863 each year — $303 less than the average homeowners policy in other North Carolina cities. The below cities have the most affordable homeowners insurance in North Carolina.
Home and Auto Insurance Bundling in North Carolina
If you want to save, consider purchasing both your homeowners and auto insurance policies from one company. Bundling homeowners and auto insurance in North Carolina can save you a substantial sum each month on auto insurance. Bundling policies in North Carolina leads to yearly savings of $55.
HOME AND AUTO BUNDLING DISCOUNTS IN NORTH CAROLINA
| Avg. Annual Rate (No Bundle) | Avg. Annual Rate (w/ Bundle) | Annual Savings ($) | Annual Savings (%) |
| $939 | $884 | $55 | 6% |
Comparing Insurance Quotes: What to Look For
When comparing insurance quotes, it’s crucial to consider more than just the premium. Look at:
- Coverage Limits: Does the policy cover the full cost to rebuild your home?
- Deductibles: How much will you pay out of pocket before the insurance kicks in?
- Company Reputation: How reliable is the provider when it comes to handling claims?
- Financial Strength: You want a provider that’s financially stable to ensure they can pay out claims.
How to Get a Free Homeowners Insurance Quote in North Carolina
Getting a free quote is easy. You can:
- Use online comparison tools to view quotes from multiple providers.
- Visit insurance provider websites to request quotes directly.
- Contact local agents for personalized advice and rates.
Be sure to compare multiple quotes to find the best value for your needs.
Discounts and Savings Opportunities
There are several ways to save on homeowners insurance:
- Bundle Policies: Insure your home and car with the same company for discounts.
- Home Security: Installing alarm systems and smoke detectors can lower premiums.
- Claims-Free Discounts: Some companies reward policyholders who haven’t filed any claims.
What to Do When Filing a Homeowners Insurance Claim
If disaster strikes and you need to file a claim:
- Contact your insurer as soon as possible.
- Document the damage with photos or video.
- Prevent further damage (e.g., tarping a leaky roof).
- Keep receipts for any temporary repairs.
Common Exclusions in North Carolina Homeowners Insurance
Not everything is covered under a standard homeowners insurance policy. Some common exclusions include:
- Flood Damage: You’ll need a separate flood insurance policy.
- Earthquake Damage: Also requires separate coverage.
- General Wear and Tear: Insurance doesn’t cover routine maintenance issues.
Special Considerations for Coastal Homes in North Carolina
If you own a home near the coast, special considerations are necessary:
- Wind and Hail Coverage: Essential for homes in hurricane-prone areas.
- NC Joint Underwriting Association (NCJUA): A last-resort option for homeowners who can’t get coverage through traditional insurers.
Tips for Lowering Your Homeowners Insurance Premiums in North Carolina
Want to save on your premiums? Here are some tips:
- Improve Home Security: Add alarms, deadbolts, and smoke detectors.
- Raise Your Deductible: A higher deductible means a lower premium.
- Review Coverage Annually: Make sure you’re not over-insured or paying for coverage you don’t need.
FAQs about Best Homeowners Insurance in North Carolina
1. What factors affect homeowners insurance rates in North Carolina?
Insurance rates in North Carolina are influenced by several factors including the location of your home, its age and construction type, your home’s value, and your insurance claims history. Additionally, proximity to the coast can also affect rates due to higher risks of hurricanes and flooding.
2. Is homeowners insurance required in North Carolina?
While North Carolina law does not mandate homeowners insurance, most mortgage lenders require it as part of their lending conditions. It’s advisable to have insurance to protect your property against losses like fire, theft, and natural disasters.
3. What does a standard homeowners insurance policy cover in North Carolina?
A typical policy includes coverage for the structure of your home, personal belongings, liability protection, and additional living expenses if your home is uninhabitable due to a covered loss. Specifics can vary, so reviewing your policy details or discussing with an agent is recommended.
4. How can I save money on homeowners insurance in North Carolina?
You can lower your insurance premiums by raising your deductible, maintaining a good credit score, installing safety features in your home, and regularly reviewing and comparing insurance quotes to ensure competitive pricing.
5. Are there any specific coverages I should consider in North Carolina?
Given North Carolina’s susceptibility to hurricanes and flooding, homeowners should consider adding flood insurance and windstorm coverage, which are not typically included in standard policies.
Conclusion
Securing the best homeowners insurance in North Carolina requires understanding your risks, comparing quotes, and tailoring your coverage to fit your home’s needs. Whether you’re dealing with potential flood risks on the coast or simply want to protect your family’s biggest asset, getting the right insurance is crucial. Take the time to compare providers and get a free quote today to ensure you’re properly protected.
References
For further reading and to validate the information provided about the best homeowners insurance in North Carolina, consider exploring these reputable sources:
- North Carolina Department of Insurance (NCDOI) – The NCDOI provides comprehensive guides, regulatory updates, and consumer insurance information that can help homeowners understand insurance policies and state regulations. Visit NCDOI.
- National Association of Insurance Commissioners (NAIC) – The NAIC offers a unique tool for comparing insurance providers nationwide, including those operating in North Carolina, which can be beneficial when choosing a homeowners insurance policy. Explore NAIC Resources.
- Consumer Reports – Known for unbiased reviews and consumer advocacy, Consumer Reports provides detailed analyses and comparisons of homeowners insurance companies, which can aid in making an informed choice. Read Consumer Reports.
These sources are reliable for those looking to dive deeper into the specifics of homeowners insurance in North Carolina and ensure they choose a policy that best suits their needs.
