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.
The average cost of homeowners insurance in North Carolina is $1,678 per year or $140 a month. This is around 12% lower than the national average of $1,899 per year.
But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in North Carolina.
Best homeowners insurance companies in North Carolina
Of the companies we evaluated, State Farm has the lowest rate, with an average annual policy cost of $904 per year — almost $775 less than the state average. Allstate’s premium is also considerably less than the state average with an average policy premium of $923.
Though price is an important factor to consider when shopping around for homeowners insurance, it shouldn’t be the only one. Customer service, claims reputation, and quality of coverage should all bear weight when it comes to making a decision about which homeowners insurance company to get your policy from.
Policygenius analyzed thousands of quotes from the 5 largest North Carolina insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of North Carolina residents to find the best homeowners insurance in North Carolina.
Why State Farm tops our best list
State Farm’s score of 835 out of 1,000 in J.D. Power’s 2021 home insurance study makes it a highly rated home insurance provider for North Carolina residents, but it’s also the cheapest of the top companies we evaluated. With a $904 average policy premium cost, you can top-rated homeowners insurance coverage at an affordable cost.
How to get a quote
Online through State Farm
Why North Carolina Farm Bureau Insurance tops our best list
While a Farm Bureau membership is required for coverage, getting a homeowners insurance policy through North Carolina Farm Bureau Insurance is a great option for North Carolina residents for a multitude of reasons. In addition to its slew of insurance products that lets you bundle your homeowners insurance policy with other policies like auto and life insurance, Farm Bureau also offers flood insurance and windstorm/hail-only policies. Not only is this a rarity among insurers, it’s also a great add-on for North Carolinians who live in areas prone to these weather events.
How to get a quote
Online through North Carolina Farm Bureau Insurance
Why USAA tops our best list
With highly-rated customer service and a J.D. Power score of 882, USAA has a lot going for it. While the company is only available to military families, North Carolina has the fifth-highest military population in the country making this a viable option for many residents.
How to get a quote
Online through USAA
Why Nationwide tops our best list
We love Nationwide’s slew of coverage options for every home type and income level. While it’s the priciest policy of the top companies on our list with an average premium rate of $2,973, it offers an array of discounts for things like living in a gated community and having a new roof. It also has a flood coverage add-on option — something to consider if you live in a coastal area prone to flooding during hurricane season.
How to get a quote
Online through Policygenius or Nationwide
Why Allstate tops our best list
Customers with Allstate have plenty of opportunities to save. Whether it’s bundling your homeowners insurance policy with your auto policy to earn 25% off your premium or opting into an autopay or a new homebuyer discount, there are several ways to keep your costs affordable.
How to get a quote
Online through Policygenius or Allstate
Cheapest homeowners insurance companies by city in North Carolina
Looking at average home insurance costs for the 15 most popular insurers in North Carolina, we found that the cheapest homeowners insurance companies in the state are Erie, Farmers, and USAA. Cities with lower populations and towns in rural areas often enjoy these lower rates.
Home insurance costs in North Carolina can vary substantially depending on where you live. Cities with a high risk of natural disasters like hurricanes may have higher average home insurance rates, however, the size and age of a home can also factor into the cost of a policy premium. No matter where you live, you should make sure to compare multiple policy options.
The table below highlights the most affordable homeowners insurance policy option in several North Carolina cities.
Shopping for homeowners insurance in North Carolina
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.
North Carolina residents in particular will want to make sure their dwelling coverage limit is high enough to cover the cost of repairs should their home be substantially damaged by severe weather like a hurricane, which is especially common in coastal cities.
In this section, we break down the average annual home insurance rates in North Carolina for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with poor credit scores, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in North Carolina.
North Carolina home insurance costs by coverage amounts
Dwelling coverage is the part of your homeowners insurance policy that protects your house from covered losses, such as a major weather event like a hurricane.
It’s important to note that your dwelling coverage amount should be equal to your home’s replacement cost. That means your coverage is calculated based on things like construction costs in your ZIP code and your home’s square footage, not the amount it would go for on the open market.
As the table below highlights, more dwelling coverage means higher homeowners insurance rates. In North Carolina, the most significant rate jump occurs in the $200,000 to $300,000 range — an over $550 difference in premiums between those two coverage levels.
The personal liability portion of your homeowners insurance policy pays for things like legal fees and medical bills in the event you’re legally responsible for property damage or an injury.
For example, if your dog bites a neighbor walking down the street or you have a friend who slips and falls in the kitchen, personal liability coverage would cover any related medical expenses. This coverage also covers you in the event of a lawsuit if the injured party decides to pursue legal action.
As seen in the table below, more liability coverage doesn’t necessarily correlate with higher average home insurance premiums in North Carolina. Opting for high liability coverage limits often has a minimal impact on your overall rate, making it a great value add for any policy.
North Carolina home insurance costs by deductible amount
Your homeowners insurance deductible is the amount you must pay toward a covered loss if you file a claim. So, if you filed a claim for $3,000 in water damage and you have a $1,000 deductible, your insurer would pay you $2,000 for the damage.
A higher policy deductible usually means lower premiums, and a lower policy deductible usually means higher premiums. In North Carolina, the average yearly savings between deductible amounts varies, but only slightly. If you live in an area with a high hurricane risk, you may want to consider a deductible that’s not too high since there’s a chance you’ll need to file multiple property damage claims.
As seen in the table below, North Carolina residents can save around $305 on home insurance by choosing a $2,000 deductible over the $500 option.
Home insurance discounts in North Carolina
In North Carolina, you may be eligible for discounts if your dwelling has certain safety features like a deadbolt or burglar alarm. Since these features can reduce the chance of a filing a claim, insurers incentivize customers to install or choose homes that already have these features.
While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in North Carolina with deadbolts, smoke alarms, or burglar alarms.
Home insurance companies in North Carolina for dog owners
If you’re a dog owner, it’s important to research whether insurers categorize your dog as a higher risk breed as it will impact your insurance costs. Insurance companies frequently categorize certain dog breeds as more dangerous due to the high amount of dog bite liability claims that are filed. Additionally, some companies deny coverage altogether for specific breeds, so make sure to explore your options.
With an average rate of $791 per year, Kemper has the cheapest home insurance rates in North Carolina for a home with a dangerous dog breed, while Nationwide’s average yearly premium of $2,973 is the highest.
Home insurance companies in North Carolina for poor credit
Generally, individuals with better credit scores enjoy lower home insurance premiums. Insurance companies have found that customers with lower credit scores are more likely to file claims for small losses, like a damaged roof, since they may not be in a financial position to pay for these damages out of pocket.
It’s important to note that while your credit score impacts your policy premiums, some insurance companies don’t weigh this factor as heavily as others, so it’s important to do your research and shop around.
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.
Home insurance companies in North Carolina for pool owners
Being a southern state, North Carolina has longer-than-average warm seasons that extend from the end of spring through the summer and into the early fall. If you’re a North Carolina resident with a backyard pool, you’ll want to look into how having a pool impacts your home insurance rates.
Since pools are considered an “attractive nuisance” aka a liability risk, your insurance company will charge you higher rates to reflect that risk
Since a pool is considered a “structure” you’ll need extra dwelling or other structures coverage to cover the value of the pool if it gets damaged by a covered peril
In general though, some companies will put less weight on having a pool than others when determining your policy premiums.
With an average rate of $822 per year, Kemper has the cheapest home insurance rates for North Carolina homes that have a swimming pool, while Nationwide’s average yearly premium of $2,973 is the most expensive.
How to buy homeowners insurance in North Carolina
With so many insurance companies available in North Carolina, it’s important to compare policies from multiple companies to make sure you’re getting the best coverage at the fairest price.
Here are a few steps to follow as you shop for homeowners 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 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.
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:
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
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.