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In North Carolina, homeowners insurance averages about $177 per month. But prices can vary depending on your coverage, deductible, and even your home’s location. Add-ons like flood insurance — which may be necessary in parts of North Carolina thanks to hurricanes — can also influence your rates.
While you don’t legally need home insurance in North Carolina, mortgage companies typically require it. Here’s what you need to know to choose the best plan to fit your needs.
Table of contents
- Best home insurance companies in North Carolina
- How much is homeowners insurance in North Carolina?
- What are the cheapest home insurance companies in North Carolina?
- How much homeowners insurance do you need in North Carolina?
- What are some of the biggest risks when owning a home in North Carolina?
- How can you save money on homeowners insurance in North Carolina?
- Average home replacement cost in North Carolina
- North Carolina homeowners insurance FAQs
Best home insurance companies in North Carolina
As a homeowner, you have many quality home insurance companies to choose from in North Carolina, including Allstate, Nationwide, and North Carolina Farm Bureau. But the right choice for you depends on your individual situation and needs.
Here’s a closer look at some of the top picks for the best home insurance companies in North Carolina.
Best large insurer: Allstate
Allstate is one of the top home insurance companies for customer satisfaction, with a score of 815, according to the J.D. Power 2022 U.S. Home Insurance Study. Allstate offers lots of discounts for things like paying on time, paying in full, and having multiple policies. You can also save up to 20% if you switch to Allstate without any recent home insurance claims with your last insurer.
Allstate also offers several types of optional coverage, such as identity theft restoration and protection for musical instruments. And if you experience a natural disaster, like a hurricane, Allstate has many resources, including local agents, that can help you navigate your recovery.
Lots of discount options
Many types of optional coverage
Mixed customer reviews
Checks credit scores
National, rather than local, insurer
Best insurer for cheap rates: Stillwater
Stillwater home insurance averages about $107 per month, which is far below the average cost in North Carolina. Stillwater’s products are limited to insurance policies and include home, auto, and business options, with a multiple-policy discount. But auto insurance isn’t available in North Carolina, which could limit your bundling options.
A+ Better Business Bureau rating
Special coverage options for catastrophic events
Limited product options
Auto insurance not available in North Carolina
Not ranked in J.D. Power U.S. Home Insurance Study
Best for hurricane coverage: Nationwide
Nationwide offers a wide range of insurance options, including homeowners, to customers across the country. The company ranks 10th for overall customer satisfaction on J.D. Power’s 2020 U.S. Home Insurance study, with a score of 816. A policy costs about $159 a month, which is lower than the average cost of insurance in North Carolina. Plus, you can get optional coverage to help replace your belongings in the event of a natural disaster, like a hurricane.
High customer satisfaction
Discounts for bundling policies
Rates below state average
Coverage can vary by state
Mixed customer reviews
Not strictly focused on insurance
Best insurer for high-value homes: Kemper
Kemper offers three levels of home insurance, and the top two tiers of coverage have higher coverage limits and useful add-ons, like identity fraud expense protection and personal property replacement cost coverage. It also offers the ability to combine coverage limits from separate coverage categories into a single maximum coverage amount, providing greater flexibility for coverage limits.
However, this insurance will cost you about $357 a month, which is more than double the state average.
Flexible coverage options
Rates are more than double the state average
Lacks hurricane resources
Best regional insurance company: North Carolina Farm Bureau Insurance
North Carolina Farm Bureau Insurance is a North Carolina-based organization that offers insurance products, including homeowners insurance. It also offers community-focused programs and banking. If you’re not sure what type of coverage you need, Farm Bureau agents across North Carolina understand what risk factors you need to consider. Plus, members get access to a wide range of perks, including discounts on rental cars, hotels, vehicles, and other purchases.
Exclusively serves North Carolina
Extra perks for members
Local agents that understand area risk factors
Doesn’t provide out-of-state coverage
Limited online quoting
No mention of insurance discounts on the site
Check Out: Homeowners Insurance Companies with the Cheapest Rates
Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in North Carolina?
The average cost of homeowners insurance in North Carolina is about $177 per month. Several factors can influence North Carolina home insurance prices, including the type of home insurance policy you select and your location.
How your policy choices affect home insurance rates in North Carolina
From the type of homeowners coverage, also called a policy form, to your coverage level and deductible, your policy choice can affect your home insurance rates in North Carolina. Here are some key components so you can understand their potential impact.
Your policy form
In North Carolina, four types of policy forms cover single-family homes. These include:
Broad form (HO-2)
Modified coverage form (HO-8)
Each of these policies covers a range of damage from perils such as fire, lightning, windstorms, hail, explosions, civil commotion, aircraft, vehicles, smoke, and volcanic eruption. They typically also cover damage from theft or vandalism.
Your coverage level
When you select a homeowners insurance plan, you’ll be able to choose the amount of coverage to buy. This is a set dollar amount that will cover your home and possessions, along with providing personal liability protection. Typically, the higher the coverage, the more expensive your plan.
Your deductible is a fixed amount you’ll need to pay when you make a claim before your insurance company will start providing coverage. While the standard deductible is $250, you may be able to choose from several deductible options when you sign up. Selecting a higher deductible amount could help you lower the cost of your plan, but be sure you can afford to pay that deductible should the need to make a claim arise.
See More: Top 12 Home Insurance Discounts and Savings: Guide on How to Qualify
How location affects home insurance rates in North Carolina
In North Carolina, the location of your house can affect home insurance rates. Things like crime rates and a history of natural disasters, such as hurricanes, can all influence your quote. The home’s proximity to a fire department or fire hydrant can also affect your premium.
Here’s a closer look at some of the average monthly rates across North Carolina:
|City||Average Monthly Quote|
What are the cheapest home insurance companies in North Carolina?
These companies can potentially help you save about $50 to $70 on your monthly premium compared to the state average of $177 per month. But remember, your specific coverage needs may result in a more expensive quote.
|Insurance Company||Average Monthly Quote|
|Homeowners of America||$130|
|Midvale Home & Auto||$180|
How much homeowners insurance do you need in North Carolina?
While homeowners insurance isn’t legally required in North Carolina, your mortgage company will usually require you to have a home insurance policy. Your lender might even require you to have a certain amount of coverage.
Before buying a policy, it’s important to understand exactly what’s covered so that you can have coverage that meets your needs.
Learn More: How Much Homeowners Insurance Do You Need?
What home insurance coverages should you buy in North Carolina?
Home insurance policies in North Carolina typically include the following coverages:
Coverage A: Your house, or dwelling, including attached structures, fixtures like plumbing, and permanently installed systems like electrical wiring
Coverage B: Other structures that aren’t attached to your house, such as a garage or shed
Coverage C: Personal property and belongings
Coverage D: Loss of use covers expenses like hotels and meals that you may incur due to the loss of use of your home
Coverage E: Personal liability to cover lawsuits if someone not in your household gets hurt on your property
Coverage F: Medical expenses when someone not in your household has an accident on your property
What optional home insurance coverages should you buy in North Carolina?
Homeowners in North Carolina may want to consider adding coverage for events that a standard home insurance policy generally doesn’t cover. These may include:
Flooding: Your lender may require flood insurance if you live in an area prone to flooding, or you can choose to add it as a precaution. Flood insurance is available through the National Flood Insurance Program (NFIP), but your insurance company can usually help you complete the application. Some private insurers also offer flood insurance.
Guaranteed replacement cost: If your regular policy doesn’t cover the full cost to replace your home, this type of add-on ensures your insurance company will cover the difference.
Extra personal property: This extra coverage can help extend limits for personal property reimbursement. You can also add a “personal article floater” to cover high-value items, like jewelry, computers, or coins.
Water backup and sump overflow: If your home experiences damage from water backup or a sump overflow, this additional coverage can help you cover any losses.
Inflation: This add-on can help keep the value of your coverage in line with your home’s current replacement value.
Other types of additional coverage you may be able to add to your plan include:
Unauthorized credit card use coverage
Tree and shrub replacement
Coverage for damage due to fungi, wet or dry rot, and bacteria
Refrigerated property replacement
And if you have a watercraft, you might consider asking about a watercraft endorsement, which can extend your personal liability protection and medical payments outside of the home.
How much home insurance coverage should you have in North Carolina?
Some North Carolina homeowners make the mistake of not buying enough coverage, or they end up sticking with the coverage level they originally purchased. While no single home insurance policy will work for every homeowner, you’ll want to work with an agent to understand how much home insurance you need and be sure to review your plan yearly.
When getting quotes, consider the value of your home and its replacement cost, the value of your personal property, and how much liability protection you’ll need in the event you have to pay damages. You’ll also need to take into account any lender requirements, which may include private mortgage insurance (PMI), mortgage life insurance, title insurance, or force-placed insurance.
Aim to get at least three quotes so that you can compare different plan options and insurance companies.
What are some of the biggest risks when owning a home in North Carolina?
In North Carolina, it’s important to consider whether your home is in a high-risk location, such as a coastal area. If so, your house might be at risk for things like coastal flooding, windstorms, and hurricanes. There were 17 major storms in 2022, according to the North Carolina State Climate Office, including eight hurricanes, two of which were Category 4 with wind speeds as high as 155 miles per hour.
While most standard policies do cover damage from perils like windstorms and hail, if you’re in a high-risk location, such as near the beach, these might be excluded from your policy.
In North Carolina, if you can’t get enough coverage from your insurer, you may be able to get protection through the FAIR Plan or the Coastal Property Insurance Pool. Both offer peril coverage and plans administered by the North Carolina Joint Underwriting Association (NCJUA).
Flood insurance is never included in homeowner insurance policies. But if you’re in a floodplain or on the coast, you might want to add this protection. Sometimes, flood insurance might even be a lender requirement, depending on where you’re located.
Flood insurance is available from the federal government through the National Flood Insurance Program (NFIP), and your insurance company should be able to help you apply. But to qualify, the community your house is in needs to meet certain zoning requirements, and there’s a 30-day waiting period before your policy goes into effect.
Learn More: What Are Perils in Insurance?
How can you save money on homeowners insurance in North Carolina?
From shopping around to bundling policies, you may be able to save some money on your North Carolina homeowners insurance. Here are a few ways to get a discount:
Since quotes can vary widely when looking for a new homeowners insurance policy, it’s a good idea to shop around. Just make sure that when reviewing quotes, you’re comparing identical coverage options.
Bundle different policies
Some insurance companies may offer discounts for bundling more than one type of policy. You can consider a multi-peril policy, which can help you save by bundling a range of peril policies. Or you might get a discount for using the same insurance company for auto or other types of insurance.
Choose a high deductible
Opting for a higher deductible can help reduce the cost of your home insurance policy. Just make sure that you can afford the higher amount should you need to file a claim.
Add security upgrades
Many home insurance companies offer discounts for certain types of security features in your home. These may include an alarm system, deadbolts on your doors, and window security devices.
Understand how much coverage you need
While carrying extra coverage may be tempting, it’s not always necessary. Working with your insurance agent to understand how much coverage you actually need can help keep your costs down.
Average home replacement cost in North Carolina
In North Carolina, the average cost to replace or rebuild your home is about $374,141. With homeowners insurance, this is also known as the replacement cost. It’s determined by the market, the purchase price, and some other factors, such as the type of materials that would be needed to rebuild. When choosing a home insurance policy, you’ll want to be sure you’re covered for at least 80% of your home’s full replacement cost.
|City||Average Home Value|
North Carolina homeowners insurance FAQs
Here are answers to some commonly asked questions about homeowners insurance in North Carolina.
The average cost of homeowners insurance in North Carolina is about $177 per month, or $2,100 annually. But if you include any add-ons, such as flood insurance or extra property coverage, this will likely affect the total cost for home insurance.
The average annual cost of homeowners insurance in North Carolina is about $2,124, which is higher than the national average of $1,398. This could be due to North Carolina having higher rebuild costs than other states.
In North Carolina, you’re not required by law to have homeowners insurance. But if you have a mortgage company, your lender will likely require you to have a policy. Having insurance not only covers your home structure but also protects your personal property and your personal liability.
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- JD Power. "Bundle Fumble? Rising Auto Insurance Premiums are Killing Home Bundles, J.D. Power Finds." Accessed January 28, 2023
- National Association of Insurance Commissioners. "Homeowners Insurance." Accessed February 6, 2023
- NC Department of Insurance. "A Consumer's Guide to Homeowners Insurance." Accessed February 6, 2023