The cost of homeowners insurance in North Carolina is $1,585 a year for the average amount of coverage. North Carolina residents can compare rates from multiple companies with Policygenius.
Published August 12, 2020|7 min read
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Homeowners insurance is essential financial protection for the 65% of North Carolina residents who own a house, covering Tar Heel State homes from tropical storm damage and cold temps during the winter months.
The statewide average cost of homeowners insurance in North Carolina is $1,585 per year, but the cost of your own policy will be determined by different factors related to your home, the details of your policy, and the strength of your credit. Your home’s age, build, location, your policy deductible, and your credit history will all play a factor when companies set your rates. North Carolina insurers may also price policies differently for the same amount of coverage, which is why it’s so important to compare insurance options from multiple insurers. That’s where we come in.
To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in North Carolina offered through our website and calculated the state’s cheapest and most expensive cities for home insurance based on hundreds of submitted quotes.
The average cost of homeowners insurance in North Carolina is $1,585 for $100,000–500,000 in coverage
The most affordable insurance company in North Carolina is Velocity, according to Policygenius quote data
When deciding on policy coverage, North Carolina residents should consider the state’s severe weather and tropical storms
Before deciding on a homeowners insurance policy, it’s worth doing a little research on the company insuring your home and assets. A great homeowners insurance company has affordable coverage, dependable customer service, flexible policy options, high-quality discounts, and is financially stable.
Velocity provides the cheapest North Carolina home insurance quote of any Policygenius partnering insurer. The average quote with Velocity is $1,109, more than $400 cheaper than the statewide average cost of $1,585. If you're a North Carolina resident looking for cheap but effective coverage, then Velocity might be the insurance company for you.
North Carolinians trying to maximize coverage for that volatile coastal weather should consider Safeco’s replacement cost coverage options. Safeco has four comprehensive tiers of coverage, and all include the option to add extended replacement cost, a policy add-on that increases your home’s coverage limits an additional 25% or 50% if rebuild costs exceed your dwelling coverage amount. Safeco’s “Premier Plan”, its highest level of coverage, includes guaranteed replacement cost, which pays for a rebuild of your home regardless of the price.
Read our full review of Safeco here
North Carolina residents with high-value homes should consider a homeowners insurance policy with AIG. This luxury insurance company provides guaranteed replacement cost dwelling coverage, replacement cost coverage on all personal property, and additional services like appraisals and risk protection consultations. Keep in mind that AIG only covers homes with an insured value of more than $750k and doesn’t provide monoline home insurance coverage, meaning you’ll need to insure your car or boat with AIG as well.
Read our full review of AIG here
In terms of discounts, Nationwide beats most North Carolina insurers. The insurance giant offers a generous multi-policy discount if you bundle your home insurance policy with their auto insurance or another type of property insurance. Nationwide also offers discounts for securing and strengthening your home and roof from break-ins and bad weather. If you haven’t filed a claim in three years or if you recently purchased your home, that can also land you a discount.
Read our full review of Nationwide here
One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is their financial stability, and Travelers is among the highest-rated insurers in that area. With an A++ rating with A.M. Best, Travelers has the highest score a company can receive with the insurance company credit rating agency. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.
Read our full review of Travelers here
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When comparing insurance companies, North Carolina residents may find that rates differ greatly from company to company for the same level of coverage. Certain companies may offer more coverage add-ons in a basic plan than competitors, or some may simply have higher rates in certain areas than others.
After reviewing hundreds of quotes submitted with Policygenius, we found that Velocity is the cheapest insurance company in North Carolina with a $1,109 average annual premium for $100,000–500,000 in coverage. Progressive is the most expensive with a $2,197 average annual premium.
The average cost of homeowners insurance in North Carolina will also differ considerably based on the amount of insurance you have for your home. Below is the average homeowners insurance quote for five different levels of coverage.
|Coverage Amount||Average Cost|
|Greater than $500,000||$ 2,411|
Insurance companies will also price policies differently based on where in the state you live. We found that the coastal city of Wilmington, North Carolina has the highest rates in the state with a $4,838 average annual premium for $100,000-500,000 in coverage. High Point in the Piedmont Triad region of North Carolina is the cheapest city for home insurance, on average, with a $994 average annual premium.
|Chapel Hill||$ 1,165|
|High Point||$ 994|
|Rocky Mount||$ 1,430|
|Wake Forest||$ 1,260|
We selected the 20 largest cities in North Carolina by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.
North Carolina is the third most hurricane-prone state in the country with 57 landfall hurricanes in recorded history, including major storms like Hurricane Hazel in 1954 and Hurricane Fran in 1996. Hurricane Dorian in 2019 is the most recent hurricane to make landfall in North Carolina.
The Western region of North Carolina also experiences tornado and severe thunderstorm outbreaks in the late spring and summer. Although the Tar Heel state doesn’t see as many twisters as states in the Midwest and Tornado Alley, it still sees an average of around 31 tornadoes a year. Hailstorms are also frequent events in North Carolina, which has resulted in the state filing the 10th most hail loss claims in the country.
A standard home insurance policy covers hurricanes, wind and hail, and tornado losses, but North Carolina residents should consider purchasing coverage enhancements — like extended or guaranteed replacement cost dwelling coverage, or additional personal property coverage — to ensure their home and items can be fully replaced in the event of a total loss.
No, homeowners insurance does not cover flood damage in North Carolina or any of the other 49 states. North Carolina residents can supplement that gap in coverage by purchasing a flood insurance policy. Flood insurance can typically be provided through the same insurance company that insures your home.
Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.
North Carolina is vulnerable to floods, including flash floods, precipitation from severe storms, and hurricane storm surge. If you live in coastal North Carolina or areas that experience frequent flash floods, particularly in cities like Asheville along the French Broad River, you should consider a flood insurance policy.
The North Carolina Department of Insurance is a great resource both for North Carolina homeowners purchasing coverage for the first time or those who are already insured. The NCDOI website provides educational information, customer tips, a guide to state insurance laws, customer complaint forms, and more.
Homeowners insurance companies can cancel your insurance for a number of reasons — maybe you filed too many claims in a short period of time, maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.
North Carolina insurance companies may also require a separate windstorm, named storm, or hurricane deductible, or they could exclude windstorm or hail coverage from your policy entirely if your home is deemed too high risk.
The NCJUA is a not-for-profit insurance association that provides basic coverage for North Carolina residents who are unable to get home insurance on the open market. To qualify for a Fair Access to Insurance Requirements (FAIR) Plan with the NCJUA, you need to demonstrate that you’ve had at least three unsuccessful attempts to buy insurance from other companies.
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