Best Homeowners Insurance in North Carolina for 2024 | Bankrate (2024)

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Updated Jun 01, 2024

Compare the best homeowners insurance companies in North Carolina

The average cost of homeowners insurance in North Carolina is $2,495 per year, or about $208 a month, for $300,000 in dwelling coverage. North Carolina homeowners insurance is, on average, slightly cheaper than the national average of $2,230 per year. Keep in mind that your own rate is likely to differ since it is based on multiple factors that are unique to your situation, such as the age and condition of your home, your ZIP code and more.

Bankrate's research indicates that the top five North Carolina homeowners insurance companies are USAA, Travelers, State Farm, Erie and North Carolina Farm Bureau. We evaluated these companies based on premium data from Quadrant Information Services, as well as third-party scores from J.D. Power's 2024 U.S. Home Insurance Study and AM Best financial strength ratings. We also looked at factors like the functionality of each company's website and app. Taking all this into account, we gave each insurer a Bankrate Score out of 5.0, where higher-rated companies fared better.

*Premiums based on $300,000 in coverage **USAA not officially ranked by J.D Power due to eligibility restrictions

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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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, rate 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.

Cheapest home insurance companies in North Carolina

Recognizing which insurance providers usually offer the best rates in the state can help you get a jump on finding the cheapest homeowners insurance. The following providers offer some of the lowest average premiums in North Carolina. Keep in mind that coverage varies between the providers, so read policy quotes carefully.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

How to get cheap home insurance in North Carolina

It’s typically not difficult to find the best cheap home insurance in North Carolina if you take your time with the decision and consider all your options. There are a number of insurers writing cost-effective policies in the state, including Bankrate’s five chosen companies. Any of them might be able to offer you a policy that will provide excellent protection for your home and property.

Here is a good step-by-step strategy to use when you are looking for cheap home insurance in the state.

• Consider your property: Potential insurers will want to know all about your house, including its age, what it's made of and even details like the age of your roof. When you are ready to gather quotes, you'll need to have these details available in order to receive an accurate price.
• Consider the choices: Pick a handful of companies that interest you, such as the ones on our list. Check out each company’s website. See if it’s easy to use and they have the answers to your questions. If you like doing your insurance business online, make sure you can handle common tasks like paying your premium and filing claims via the website or an app. If you prefer an in-person approach, look for companies that have local agents in your area.
• Gather quotes: It's a good idea to request a free quote from more than one company. Many insurers let you get a quote online after answering a few questions about your home. Others require you to call an agent. Make sure you are quoting the exact same amounts from each company, so that you can do an apples-to-apples comparison of their rates.
• Choose the company that best meets your needs: Everyone’s needs are different and some companies may offer you the best price, while others will offer excellent customer service. Still others might offer lots of endorsem*nts that fit your needs. Compare your quotes and your research on each company to determine which one is right for you.

Best home insurance discounts in North Carolina

Utilizing discounts that you qualify for might be one of the best ways to save money on your homeowners insurance in North Carolina. Most insurers have at least a few discounts available and they are generally not difficult to qualify for. Here are some of the common ones you may see while searching for your own policy:

• Online purchase:Some insurers will offer a small discount just for applying for your policy online, rather than through an agent.
• Bundling:By purchasing multiple policies from one carrier, such as home and auto, you might qualify for a bundling or multi-policy discount.
• Newly purchased house:If you've purchased your home within the last year, you could save money from some insurers who offer this discount.
• Protective devices: Since protecting your home means you'll be less likely to file a claim, insurers will often offer a discount if you have smoke detectors, burglar alarms or other security devices or systems.
• Claim-free: If you've been claim-free for a certain number of years — usually between three and five — you may earn a discount, depending on the company.

How to save on home insurance policy renewals in North Carolina

Once you’ve found the best insurance provider for you, there are still ways you can save on your policy at renewal time:

• Maintain your roof: New roofs typically qualify for discounts or cheaper premium rates, since they’re less likely to become as damaged as older roofs. A new roof also does a better job at protecting your home and your personal belongings, which can save you and the insurance company money in the long run.
• Improve your credit score: While working on your credit score does take time, moving into a better credit score category can help you get a better policy rate at renewal time.
• Limit your claims: Homeowners insurance is there for you if you suffer a loss that you can’t pay for out of pocket. However, if you frequently file claims, your insurance company could raise your premium or decide not to renew your policy.
• Install wind and flood mitigation updates: If you’ve made improvements that protect your home and have had a home inspection, your insurance company might reward you with policy discounts. Popular improvements include retrofitting your roof to be more wind resistant, installing storm or hurricane shutters and installing roof fasteners, and installing impact-resistant windows.

How much is home insurance in North Carolina?

The average cost of North Carolina home insurance for 2023 is $2,495. This is 12 percent more than the national average of $2,230. Your rate may vary depending on where in the state you live, how populated your city is and what the crime rates are. Additionally, those in coastal regions may pay more to account for the increased risk of hurricanes and windstorms. Aside from your location, the current condition of your home and roof, as well as your claims history, might all impact your insurance rate depending on your state’s regulations.

North Carolina’s average annual home insurance rate falls between surrounding states’ rates. Tennessee homeowners pay $2,410 per year on average, and South Carolina homeowners pay $2,360 per year.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

North Carolina homeowners insurance rates by city

Home insurance prices vary by city throughout the Tar Heel State, from coastal towns to mountain cities. Take a look at the data below to get an idea of how much North Carolinians pay for homeowners insurance by city.

What does home insurance cover in North Carolina?

A standard HO-3 home insurance policy covers quite a few perils, like theft, vandalism, and hail, but there are some key perils that aren’t included, which is why it’s important to know what your policy covers. As a coastal state, North Carolina frequently sees damaging hurricanes and tropical storms that can lead to serious flooding. The state also experiences a high number of wildfires and damage caused by wind. Keep these weather events in mind when selecting your insurance coverage. Here are a few of the most common types of damage that might lead North Carolinians to file home insurance claims:

• Wind: Damage from wind might not sound serious, but wind-related damage from tropical storms and hurricanes can be devastating. Most home insurance policies include windstorm coverage, although the state does not require carriers to include wind damage. This is why it might be a good idea to check your policy to see if it’s included or if exclusions apply.
• Fire: If your home’s electrical system is damaged by severe storms, fire could destroy your home. This is why standard home insurance policies cover fire damage. However, you might want to check your coverage limits to ensure that your policy would pay out enough for your structure and belongings if your home was completely destroyed.

Additional home insurance coverage types 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 financial protection. Here are a few coverage types North Carolinians could benefit from:

• Flood insurance: Homeowners living in coastal regions or in an area that is prone to flooding may be required by their mortgage lenders to purchase flood coverage. Even if you aren’t, it could be a good idea to have. However, very few home insurers offer flood insurance as an endorsem*nt on a standard homeowners policy. Flood insurance is available through the National Flood Insurance Program and dozens of 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 to 5 percent of your home’s insured dwelling value.
• Earthquake damage: Earthquakes are more common in the western part of North Carolina. However, to date, North Carolina has only seen 22 earthquakes. An earthquake endorsem*nt may help cover repairs due to earthquake damage and might 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 widespread in the state, without the endorsem*nt, there is typically no coverage for earthquake damage on most North Carolina homeowners insurance policies.

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Common North Carolina home insurance problems

North Carolina faces its share of severe weather, from coastal flooding to hurricane and wind damage. Insurers in the state look at claims and risk assessment tools like the hurricane hazard assessment tool to determine how costly it is to provide insurance coverage. Unfortunately, more frequent and severe storms are just a few of the challenges facing North Carolinians. Here are a few more problems with getting homeowners insurance in the state:

• Rising insurance rates: More frequent, costly storms, along with litigation and inflation contribute to higher insurance premiums for North Carolinians.
• Unable to get insurance: Residents in high-risk flood areas, like along the North Carolina coast, are often required to carry flood insurance, which may be cost prohibitive for some people. Other homeowners might be denied for homeowners insurance if they’ve filed multiple claims in the past.

Methodology

Bankrate utilizes Quadrant Information Services to analyze June 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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