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.
Compare the best homeowners insurance companies in North Carolina
Auto-Owners, State Farm, and Nationwide top our list of the best homeowners insurance companies in North Carolina.
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.
Company | Best for... | Average monthly cost | Policygenius rating |
|---|---|---|---|
Overall | $204 | 5.0 out of 5 | |
Low rates | $75 | 4.8 out of 5 | |
Robust coverage options | $200 | 4.5 out of 5 | |
Water damage protection | $156 | 4.5 out of 5 | |
Short-term rental coverage | $77 | 4.4 out of 5 |
Methodology & why you can trust our rates
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.
Best overall homeowners insurance in North Carolina: Auto-Owners
2023 Policygenius award winner
Auto-Owners Insurance
5.0
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.
Best for low rates: State Farm
2023 Policygenius award winner
State Farm
4.8
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.
How to get a quote
Online through State Farm
Best for robust coverage options: Nationwide
2023 Policygenius award winner
Nationwide
4.5
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.
How to get a quote
Online through Policygenius or Nationwide
Best for water damage protection: Erie
2023 Policygenius award winner
Erie
4.5
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.
How to get a quote
Online through Erie
Best for short-term rental coverage: Allstate
2023 Policygenius award winner
Allstate
4.5
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% |
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.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $664 |
$200,000 | $1,024 |
$300,000 | $1,545 |
$400,000 | $1,928 |
$500,000 | $2,308 |
Cheapest homeowners insurance companies in North Carolina
Based on our analysis, Kemper, State Farm, and Allstate are 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.
Company | Average annual cost |
$791 | |
$900 | |
$923 | |
Bankers Insurance | $1,036 |
Lititz Mutual Insurance | $1,210 |
$1,210 | |
Universal Property | $1,384 |
Lighthouse Property Insurance | $1,433 |
$1,735 | |
$1,764 | |
$1,809 | |
$1,876 | |
$2,395 | |
$2,447 |
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 |
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 |
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 |
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.
Learn more >> Flood insurance in North Carolina: Coverage & costs
How to buy 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.
Here are a few steps to follow as you shop for homeowners insurance in North Carolina.
Frequently asked questions
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.
