Homeowners Insurance in North Carolina

What factors influence my home insurance rate?

Your home insurance rate is calculated based on an amalgamation of factors. Some of the most common factors include: 

• Your location. According to Insurance.com, homeowners in the zip code 28445 (Surf City, Holly Ridge and Topsail Beach) pay the most for home insurance in North Carolina because they’re right on the coast. The average policy here is $8,737 compared to $1,752 for people in Catawba County (zip code 28658). 
• Home size. Large homes in Biltmore Forest will have higher premiums than tiny homes in Asheville.
• Claims history. It’s common for homeowners insurance rates in NC to increase if you’ve filed a claim in the past three to five years.
• Credit score. Insurers are allowed to use credit-based insurance scores in North Carolina. Nerdwallet reports that homeowners with poor credit in NC may pay around 80% more for insurance than those with good credit. 
• Coverage amount and deductible. Home insurance rates also fluctuate based on the coverage limits and deductibles you choose when signing up for a policy. 
• Special features. Items like pools, trampolines, or wood-burning stoves may increase your liability risk and, subsequently, your premium.

Common insurance discounts in North Carolina

North Carolina homeowners can take advantage of various discounts to lower their premiums. Some common insurance discounts include:

• Multi-policy discount. Bundling your home insurance with another policy from the same insurance company typically saves you up to 20% on premiums. 
• New home discount. You could potentially save up to 40% if you’re insuring a newly constructed home in North Carolina.
• Safety features discount. Many home insurance companies (like Hippo) give a discount for installing smoke detectors, burglar alarms, or sprinkler systems. 
• Storm-resistant features discount. Homes with impact-resistant roofs or hurricane shutters may qualify for discounts, especially in coastal areas of NC.
• Claims-free discount. You could save up to 20% on your premium by maintaining a clean claims history for three to five years.
• Retiree discount. Some homeowners over 55 may be able to save up to 10% on home insurance.
• HOA discount. If you need North Carolina condo insurance, you may qualify for a discount in an eligible homeowners association. 
• Loyalty discount. Staying with the same insurer for several years could earn you a discount between 5% and 10%.

Tips for lowering home insurance rates

Discounts aren’t the only way to make home insurance more affordable in North Carolina. You can also reduce premiums with these tips: 

• Fortify your home against hurricanes. More than 30 hurricanes and tropical storms have caused problems for NC homeowners since 1954. You can lower your risk of filing a claim by installing impact-resistant windows, reinforcing your roof, and adding storm shutters.
• Upgrade your home systems. Updating old electrical, plumbing, or HVAC systems can help your insurance premiums remain low.
• Raise your deductible. Opting for a higher home insurance deductible can lower your monthly premiums. But be sure you can comfortably afford the higher out-of-pocket cost if you need to file a claim.
• Improve your credit score. According to FICO, 85% of insurers use credit scores as a factor when calculating home insurance rates. By paying your bills on time and lowering your debt, you could potentially raise your credit score and lower your premiums.
• Install a home security system. Adding features like burglar alarms, smoke detectors, and monitored security systems can make your home safer and less risky to insure.
• Review and update your policy annually. If your current provider isn’t meeting your needs, get quotes from at least three other insurers to compare your options. (It takes as little as 60 seconds to get an NC homeowners insurance quote with Hippo.) Changing insurance providers can seem like a big deal, but companies like us will walk you through every step. 

What does North Carolina home insurance cover?

A typical North Carolina home insurance policy protects your home, personal belongings and liability. It shields you from financial losses caused by events like fire, theft, and storm damage.

Here are the main components of a standard policy:

• Dwelling coverage. Protects your main home and attached structures from covered damages, including plumbing, electrical wiring, and built-in appliances.
• Other structures coverage. Covers standalone structures on your property, like sheds or fences.
• Personal property coverage. Protects all the physical items you own, like furniture, clothing, and tech, while you’re at home and away. 
• Loss of use coverage. Helps with additional living expenses if you can't live in your home due to damage from covered perils. For instance, a tropical storm causes a large oak tree to crash through your house, and you can’t live in it until it’s repaired.
• Personal liability coverage. Protects you financially if you're responsible for injuring others or damaging their property. For example, if your dog bites a stranger in the park and they decide to sue.
• Medical payments coverage. Pays for minor injuries to guests on your property, regardless of who's at fault. For instance, if a child gets hurt on your trampoline, this part of your policy could cover medical expenses.

Additional North Carolina insurance coverage options

According to FEMA data, NC has had 53 declared natural disasters, including hurricanes, tornados and flooding, since 1954.

Outside of the baseline protection, homeowners in North Carolina should consider adding these coverages to their policies due to the nature of their state:

• Flood insurance. Standard home insurance policies don't cover flood damage. Given North Carolina's coastal location and frequent hurricanes, flood insurance is a must. You can get a policy privately or through the National Flood Insurance Program.
• Wind and hail coverage. Some standard policies exclude wind and hail damage in coastal areas. You may need to purchase a separate windstorm policy or add a wind and hail endorsement to an existing policy.
• Hurricane insurance. While not a separate policy, review your home insurance to ensure it offers enough hurricane coverage. You may also want to check if you have a separate deductible for hurricane damage.
• Sewer backup coverage. This rider protects against damage from backed-up sewers or drains, which isn't typically covered by standard policies.
• Sinkhole coverage. Parts of North Carolina are prone to sinkholes. Consider adding this coverage if you live in an at-risk area.
• Earthquake insurance. Although less common, earthquakes can occur in North Carolina. You can add earthquake coverage as an endorsement or a separate policy.
• Valuable items coverage. If you own high-value items like jewelry or artwork that exceed your policy's standard limits, consider scheduled personal property coverage.
• Home-based business coverage. If you run a business from home, you may need additional coverage to protect your equipment and liability.
• Identity theft protection. This rider can help cover costs associated with identity theft, which affects roughly 23.9 million U.S. residents, according to the Bureau of Justice Statistics.

🔍 Did you know? 

Some homeowners in North Carolina have a separate deductible for named storms or hurricanes. This deductible can be a fixed amount or a percentage of your home's insured value. 

What coverage is recommended in North Carolina?

Homeowners in North Carolina need comprehensive insurance that addresses both common and state-specific risks. Here's what's typically recommended:

• Dwelling coverage equal to 100% of your home's rebuild cost.
• Enough personal property coverage to replace all your belongings.
• Liability coverage of at least $300,000 to $500,000 (or enough to fully protect your assets). 

Given North Carolina's propensity for natural disasters, you may also want to add:

• Flood insurance, especially if you're near the coast or in a flood-prone area.
• Wind and hail coverage which may require a separate policy in coastal regions.
• Hurricane coverage with big enough limits to cover potential storm damage.
• Sewer backup coverage to protect against water damage from backed-up drains.
• Valuable items coverage for expensive items you own that exceed your standard policy limits.

Insuring your home in North Carolina

You can make sure you get the right home insurance policy in NC with these steps: 

1. Determine how much home insurance you need.
2. Compare home insurance quotes from at least three reputable companies in North Carolina. 
3. Review the terms, conditions, coverage limits, deductibles, and exclusions to decide which policy fits your needs best.
4. Decide if you need to add any additional coverage options based on your location and risk factors.
5. Finalize your policy with your preferred insurer and pay your premium. Your policy will become effective on the agreed date.

Everyone deserves access to home insurance coverage. If you're unable to get coverage through traditional means — maybe because your home is deemed too high risk or you have a long history of claims — you may be eligible through the North Carolina Joint Underwriting Association's FAIR Plan.

You can learn more about home insurance through the North Carolina Department of Insurance.                                                                        

Is North Carolina homeowners insurance required by law?

The state of North Carolina doesn’t require homeowners insurance — but mortgage lenders do. If you’re still paying on your house, you will be required to have home insurance to protect your mortgage lender’s investment in your property. 

If your lender requires home insurance and you don’t have it, they will force-place insurance on your property and charge you for it. Generally, force-placed policies are often expensive and only protect your lender’s investment in your house (meaning they don’t include personal property or liability coverage).

If you’re mortgage-free, home insurance is still highly recommended. All it takes is one hurricane to rip through your home and destroy everything you own. If you can’t comfortably rebuild your home, replace your belongings, and cover your legal liability on your own, you need home insurance in NC.

Looking for homeowners insurance in a different state?

Click anywhere on the map to explore home insurance costs in neighboring states like South Carolina, Georgia, Tennessee, Virginia—or anywhere else in the U.S.