Best homeowners insurance in North Carolina for 2023
We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in North Carolina.
By
Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Edited by
Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.
With its breathtaking fall foliage, fast growing cities like Charlotte and Raleigh, and an affordable cost of living, North Carolina is a great place to settle down and buy a home. However, parts of the state are also prone to hurricanes, so it’s extra important to protect your house with a solid homeowners insurance policy. Fortunately for North Carolina residents, affordable premiums are available despite the severe weather risks.
To come up with our top picks, we looked at the 10 North Carolina companies with the highest market share in the state and chose the five with the highest overall Policygenius rating. Our ratings are based on each company's financial strength and customer satisfaction ratings, the number and quality of available coverages, and average policy premiums in 713 North Carolina ZIP codes.
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Nationwide drops over 10,500 home insurance policies in North Carolina
In September 2023, Nationwide announced it will not renew 10,525 home insurance policies in North Carolina — most in eastern parts of the state — due to hurricane risks.
If you were dropped by Nationwide, consider one of our other top choices for home insurance in North Carolina or check out our guide to coastal home insurance.
Best overall homeowners insurance in North Carolina: Auto-Owners
2023 Policygenius award winner
Auto-Owners Insurance
Policygenius rating
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
5.0
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Offers extended replacement cost
Offers flood insurance
Why we chose it
Auto-Owners Insurance is the best homeowners insurance company in North Carolina thanks to its extensive policy and coverage options, its high marks for financial strength, and its customer experience ratings.
Pros and cons
Pros
Offers a slew of extra coverage add-ons
Lots of discounts available
Flood insurance through the NFIP
Cons
Rates are higher than average
Not able to get quotes or file claims online
More details
Why Auto-Owners Insurance is our pick for best overall company
Auto-Owners Insurance is our pick for the best overall home insurance company in North Carolina. Auto-Owners scored at least a 4 out of 5 for customer experience, coverage options, and financial strength, which earned it a perfect 5 out of 5 Policygenius rating.
With endorsements like guaranteed replacement cost coverage, water backup protection, inland flood coverage, and a comprehensive Homeowners Plus endorsement package, Auto-Owners offers excellent value for the coverage you're getting.
Finally, although Auto-Owners' rates are more expensive than average in Alabama, the company offers a range of discounts that can help lower your insurance rates.
How much does Auto-Owners home insurance cost in North Carolina?
The average cost of Auto-Owners home insurance in North Carolina is $2,447 per year, according to sample quotes provided to us by Quadrant Information Services. This makes Auto-Owners Insurance about 58% more expensive than the statewide average.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.8
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm home insurance is one of the best overall home insurance providers in North Carolina thanks to low rates, a large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings.
Pros and cons
Pros
Rates are cheaper than average
Excellent line-up of policy add-ons, including extended replacement cost coverage
Save up to $1,127 per year when you bundle your home and auto insurance
Cons
20% more complaints filed with the NAIC than other companies of its size
More details
Why we chose State Farm
At a time when lots of competitors are no longer insuring homes in areas prone to wildfires or hurricanes, State Farm continues to offer its relatively affordable and highly-rated home insurance to homeowners in most parts of the country, including North Carolina.
While some of its competitors may not have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How do State Farm home insurance rates compare to the North Carolina average?
The average cost of State Farm home insurance in North Carolina is $900 per year, which is $600 cheaper than the average state annual premium of $1,545.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.5
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Mobile app
New homebuyer discount
Offers extended replacement cost
Why we chose it
Nationwide is one of the best homeowners insurance companies in North Carolina for people who want complete coverage. You can strengthen a basic Nationwide policy with the company's range of coverage add-ons.
Pros and cons
Pros
Multiple high-quality coverage options
Highly rated for claims satisfaction with J.D. Power
Cons
Rates are higher than average
Below-average customer satisfaction and digital experience ratings
Won’t cover Airbnbs or other short-term rentals
More details
Why we chose Nationwide
Nationwide is the best homeowners insurance company for those who can take advantage of its large selection of coverage options. These include guaranteed and extended replacement cost coverage, better roof replacement, new belongings coverage, water backup protection, and equipment breakdown coverage.
Nationwide has also received high ratings from J.D. Power for claims satisfaction, and it ranks fifth on J.D. Power's Property Claims Satisfaction Study from 2022. The company also receives far fewer complaints than other insurers, according to the National Association of Insurance Commissioners.
Although we found that Nationwide's rates are more expensive than average in North Carolina, you might be able to lower your premiums with the company's discounts. These include discounts for bundling, renovating your home, buying a new home, and others.
How do Nationwide home insurance rates compare to the North Carolina average?
The average cost of Nationwide home insurance in North Carolina is $2,395 per year, which is 55% more expensive than the state average of $1,277.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.5
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Mobile app
Bundle home & auto
Why we chose it
Erie's wide range of coverage options, industry-best customer service ratings, and private flood insurance add-on makes it one of the best companies in North Carolina.
Pros and cons
Pros
Cheap rates
Guaranteed replacement cost comes standard on Erie policies
Excellent customer service and claims satisfaction ratings
Cons
Only available in 12 states
Just three available discounts
Can’t get quotes or file claims online
More details
Why we chose Erie
Erie is one of the best homeowners insurance companies in North Carolina for residents who want to add more flood protection to a basic policy. Its Extended Water endorsement is effectively a flood insurance policy and sewer and drain backup coverage rolled into one.
Home insurance policies from Erie also come standard with guaranteed replacement cost coverage — which you often have to pay extra for at other companies. On top of this, a basic policy covers lost and misplaced items, jewelry, and gift cards to closed businesses.
Erie also offers a range of add-ons that you can purchase, like short-term rental coverage, equipment breakdown coverage, underground service line coverage, and more.
How do Erie home insurance rates compare to the average in North Carolina?
The average cost of Erie home insurance in North Carolina is $1,876 per year, which is 21% higher than the state average of $1,545.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.5
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Smart home discounts
Why we chose it
Allstate is one of the top home insurance companies in North Carolina. Its rates are lower than average in the state, and Allstate also offers a few add-ons that can make a basic policy stronger.
Pros and cons
Pros
Offers HostAdvantage for short-term rental coverage
Low rates compared to competitors
Offers water backup protection, other endorsements
Cons
Beginning to pull back coverage in high-risk areas
Below-average digital experience rating with J.D. Power
More details
Why we chose Allstate
Allstate is a top home insurance company in North Carolina. We like that Allstate offers some home insurance coverages that you can add to your policy for more protection, like water backup protection, scheduled personal property coverage, and identity theft restoration coverage.
If you're looking to cover your short-term rental, Allstate's HostAdvantage is another perk. HostAdvantage comes with theft protection, coverage for your damaged property ($10,000 per host period), and a $25 discount on cleaning services from Merry Maids.
How do Allstate home insurance rates compare to the North Carolina average?
The average cost of Allstate home insurance in North Carolina is $923 per year, which is 40% cheaper than the statewide average.
How to get a quote
Online through Policygenius or Allstate, or by contacting a local Allstate agent
How much is homeowners insurance in North Carolina?
The average cost of homeowners insurance in North Carolina is $1,545 per year for an insurance policy with $300,000 in dwelling coverage. This is around 12% cheaper than the nationwide average of $1,754.
North Carolina homeowners insurance rates by city
Home insurance costs in North Carolina can vary depending on where you live. Cities with a high risk of natural disasters, such as hurricanes or other extreme weather conditions, will likely have higher average home insurance rates.
Here’s a look at the average cost of home insurance in the 20 largest cities in North Carolina.
City
Average monthly cost
Average annual cost
Difference from state average (%)
Charlotte
$134
$1,605
4%
Raleigh
$147
$1,760
14%
Greensboro
$123
$1,471
-5%
Durham
$146
$1,749
13%
Winston-Salem
$118
$1,415
-8%
Fayetteville
$188
$2,250
46%
Cary
$147
$1,758
14%
Wilmington
$96
$1,146
-26%
High Point
$122
$1,468
-5%
Concord
$123
$1,481
-4%
Asheville
$99
$1,193
-23%
Greenville
$185
$2,217
43%
Gastonia
$116
$1,390
-10%
Apex
$147
$1,759
14%
Jacksonville
$71
$847
-45%
Huntersville
$130
$1,558
1%
Chapel Hill
$123
$1,475
-5%
Burlington
$120
$1,440
-7%
Kannapolis
$123
$1,481
-4%
Rocky Mount
$167
$2,000
29%
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North Carolina homeowners insurance rates by coverage amount
The table below highlights the average annual premium in North Carolina for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.
Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Cheapest homeowners insurance companies in North Carolina
Based on our analysis, Kemper, State Farm, and Allstateare the three cheapest home insurance companies in North Carolina, with statewide average premiums ranging from $791 to $923 per year.
Bankers Insurance, Lititz Mutual Insurance, and Farm Bureau Insurance are also among the most affordable home insurance carrier options for North Carolina residents in 2023, as detailed in the table below.
Cheapest North Carolina homeowners insurance if you have poor credit
Generally, individuals with better credit scores enjoy lower home insurance premiums. Insurance companies have found that customers with lower credit scores file more claims for small losses, like a pipe leak, since they may not be in a financial position to pay for these damages out of pocket.
With an average rate of $923 per year, Allstate has the cheapest home insurance rates in North Carolina for a homeowner with poor credit, while Auto-Owners Insurance average yearly premium of $8,534 is the highest.
Company
Average annual cost
Allstate
$923
Kemper
$1,129
Farm Bureau Insurance
$1,210
Lititz Mutual Insurance
$1,210
Bankers Insurance
$1,411
Lighthouse Property Insurance
$1,522
State Farm
$1,549
Universal Property
$1,718
Narragansett Bay
$1,839
Farmers
$2,180
Nationwide
$3,376
USAA
$3,401
Erie
$4,964
Auto-Owners Insurance
$8,534
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Cheapest North Carolina homeowners insurance if you have an older home
The median age of homes in North Carolina is 32 years old, according to an analysis of U.S. census data by House Method. And like many other factors, the age of your home plays a role in how much you pay for home insurance in North Carolina.
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.
Company
Average annual cost
Kemper
$791
State Farm
$903
Allstate
$923
Bankers Insurance
$1,036
Farm Bureau Insurance
$1,210
Lititz Mutual Insurance
$1,210
Lighthouse Property Insurance
$1,522
Universal Property
$1,786
USAA
$2,037
Farmers
$2,094
Narragansett Bay
$2,278
Auto-Owners Insurance
$2,315
Erie
$2,488
Nationwide
$2,970
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Cheapest North Carolina homeowners insurance if you have a history of claims
One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.
Here's the cheapest home insurance companies in North Carolina for a homeowner with three claims within a five-year period:
Company
Average annual cost
State Farm
$903
Allstate
$923
Lititz Mutual Insurance
$1,210
Farm Bureau Insurance
$1,210
Kemper
$1,328
Bankers Insurance
$1,504
Lighthouse Property Insurance
$2,302
Auto-Owners Insurance
$2,483
Erie
$2,488
Narragansett Bay
$2,585
USAA
$3,082
Universal Property
$4,368
Nationwide
$4,810
Farmers
$6,028
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North Carolina coverage options for hurricanes and flooding
In addition to looking at how much each insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
When buying homeowners insurance in North Carolina, there are two additional insurance options you may need to consider to protect against the state’s hurricanes and flooding.
Windstorm insurance
Homeowners insurance generally covers the cost of repairs if your home is damaged by wind or hail. However, since North Carolina sees hurricanes and tropical storms, policies often exclude coverage for wind and hail in high-risk areas.
If that’s the case, you’ll need windstorm insurance — a special type of property insurance that specifically covers your home and belongings from wind or hail damage. Windstorm insurance is sometimes available as an add-on to your homeowners insurance, though it can also be purchased as a separate wind-only policy.
Flood insurance
Homeowners insurance policies don’t cover flood damage, so North Carolina residents in at-risk areas will want to consider flood insurance on top of their coastal home insurance policy.
In addition to comparing home insurance quotes, North Carolina homeowners can also compare private flood insurance rates with Policygenius, or choose a policy through the government-backed National Flood Insurance Program.
When looking for the best homeowners insurance for you, it’s best to shop around and compare policy options from several companies. Researching your options, exploring discounts, and comparing rates are all important factors when searching for a policy that fits your homeownership needs.
Here are a few steps to follow as you shop for homeowners insurance in North Carolina.
6 simple steps to buying home insurance in North Carolina
Reach out to a licensed Policygenius agent. Our team of licensed insurance experts are at the ready to help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.
Ask about the North Carolina Joint Underwriting Association (NCJUA) — North Carolina’s FAIR Plan provider. NCJUA is a tax exempt association of insurance companies “created to act as a market of last resort” if property owners can’t get adequate homeowners insurance in the traditional marketplace. If you live in a coastal area at high risk of storm surge or flooding, ask your Policygenius agent about whether a policy through North Carolina’s FAIR Plan makes more sense than going with a traditional insurance company.
Consider purchasing flood insurance. Since standard home insurance policies don’t cover flooding, you’ll want to add flood coverage or purchase a separate flood insurance policy in North Carolina to make sure you’re fully protected. A Policygenius agent can help you do this, too.
Figure out how low of a deductible you can afford. Since homeowners in North Carolina have different deductible amounts that you can choose from, you’ll want to consider how often you’ll need to file a claim and how much you’d be able to afford to pay out of pocket in the event of a loss.
Compare quotes from a Policygenius agent. Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent will walk you through quotes from multiple companies to help you find the best homeowners insurance for your needs.
Sign the policy and pay your first premium. After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you. The only thing left to do is sign the policy and pay your first premium. They’ll even cancel your old policy for you if it’s not up yet.
North Carolina experiences hurricanes — how does extreme weather impact my policy?
Average homeowners insurance policy costs in North Carolina are lower than the national average. However, depending on where you live in North Carolina, you may be at risk for severe weather like hurricanes and extreme wind.
Due to the state’s extreme weather conditions, there is a higher chance of claims being filed for things like property damage, so some companies raise the costs of premiums to cover the risk.
How can I lower my homeowners insurance in North Carolina?
You can lower your homeowners insurance in Florida by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts of up to 25% off your premiums, or opting into a new homebuyer discount.
Another way to lower your homeowners insurance rates is by opting for a higher deductible. Just keep in mind a higher deductible means you’ll have to pay more money out of pocket when you file a claim before your insurance company kicks in to cover the rest.
Is it mandatory to have homeowners insurance in North Carolina?
While it’s not legally required to purchase homeowners insurance in North Carolina, most mortgage lenders require you to purchase home insurance before they’ll extend a home loan to you. This is because they have a financial investment in the property until you pay off your mortgage, so they want to ensure it’s fully protected.
Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.