Paul Sanchez
Homeowners insurance in North Carolina varies depending on location, with those in coastal regions paying more due to the risk of hurricanes and flooding. The average annual cost of home insurance in North Carolina is $2,490, 18% more than the national average. However, this figure can vary depending on location, with homeowners in Charlotte paying an average of $2,550 per year, while those in Wilmington pay an average of $7,210 per year. Progressive's HomeQuote Explorer® tool allows North Carolina residents to compare insurance rates and coverages from multiple companies. While homeowners insurance isn't required by state law, lenders typically require it for financed homes.
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What You'll Learn
Average cost
The average annual cost of home insurance in North Carolina is $2,490, 18% more than the national average of $2,110. However, the cost of homeowners insurance in North Carolina varies depending on where you live within the state. For example, the average cost of homeowners insurance in Charlotte is $2,550 per year, while homeowners in the coastal city of Wilmington pay an average of $7,210 per year.
The cost of homeowners insurance in North Carolina is influenced by factors such as home type, roof construction, past claims, coverage amounts, and deductibles. Additionally, the state is prone to severe weather conditions, including hurricanes, tropical storms, flooding, and hail, which can impact the cost of insurance. Standard homeowners insurance policies in North Carolina typically do not cover flood damage, and residents may need to purchase separate flood insurance, especially if they live in coastal or flood-prone areas.
In recent years, there have been disputes over proposed increases in homeowners insurance rates in North Carolina. In 2024, the average monthly price of Progressive homeowners policies in the state was $150.21, or $1,802.52 annually. However, in 2025, it was reported that North Carolina homeowners would experience an average rate increase of 15% over two years, with a maximum increase of 35% in any territory. This rate increase was attributed to the higher cost of doing business due to climate change and the increased frequency and severity of natural disasters.
It's worth noting that homeowners insurance is not required by state law in North Carolina. However, if you have a mortgage, your lender will typically require you to have homeowners insurance until you have paid off your loan. When considering the cost of homeowners insurance in North Carolina, it's essential to understand what your policy covers and doesn't cover, especially regarding natural disasters and additional protection you may need.
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Location-based pricing
The cost of home insurance in North Carolina varies depending on location within the state. The average annual cost of home insurance in the state is $2,490, which is 18% more than the national average. However, this figure can vary greatly depending on your ZIP code. For example, the average cost of homeowners insurance in Charlotte is $2,550 per year, while homeowners in Wilmington pay an average of $7,210 per year. North Carolina homeowners insurance rates are the most expensive for ZIP code 28445, with an average annual cost of $8,737.
Location is the biggest factor affecting home insurance rates in North Carolina, with rates varying by up to 378%. Weather risks, home value, and population density in an area play a major role in determining costs. For example, the mountainous western part of North Carolina is likely to see severe winter storms with ice and hail, while the coast is more prone to tropical storms and hurricanes coming off the Atlantic. As a result, homeowners in coastal regions may pay higher insurance premiums due to the increased risk of storm damage.
Additionally, homeowners in North Carolina may need to purchase separate flood insurance, as flooding is typically not covered under standard homeowners insurance policies. The risk of flooding is higher in coastal areas and regions prone to severe weather, which can further increase the cost of home insurance in these locations.
To mitigate the higher insurance costs in certain locations, North Carolina homeowners in coastal regions may qualify for homeowners insurance discounts by retrofitting their homes for wind resistance. By using certified FORTIFIED home contractors for roofing or new home construction, homeowners can reduce their insurance premiums.
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Discounts for wind resistance
The average annual cost of home insurance in North Carolina is $2,490, 18% more than the national average. However, this figure can vary depending on where you live within the state. For instance, the average cost of homeowners insurance in Charlotte is $2,550 per year, while homeowners in Wilmington, a coastal city, pay an average of $7,210 per year. This is because coastal regions are more prone to tropical storms and hurricanes, which can cause wind and flood damage.
Homeowners insurance in North Carolina isn't required by state law. However, if your home is financed, your lender will typically require you to have homeowners insurance until you've paid off your mortgage.
North Carolina homeowners in the coastal region may qualify for homeowners insurance discounts by retrofitting their homes for wind resistance. To be eligible for these discounts, you must use certified FORTIFIED home contractors to reroof or build your new home. FORTIFIED methods are an excellent way to prepare your North Carolina home for hurricanes.
You can also save money on wind and hail insurance rates by installing total hip roof and opening protections, which can provide savings of between 8% and 10%. You can increase your savings by bringing your roof up to FORTIFIED status, which encourages homeowners to make their homes even more wind-resistant than standard building codes. Maximum wind mitigation discounts range from 15.8% to 17.4%, depending on home construction, location, and FORTIFIED status.
In addition to wind resistance measures, you can also lower your insurance costs by paying in full, bundling your home and auto policies, installing alarm and security systems, and going paperless.
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Additional coverage options
The average cost of homeowners insurance in North Carolina is $2,087 per year, or about $174 a month, for $300,000 in dwelling coverage. However, this figure can vary depending on where you live in the state. For instance, the average cost of homeowners insurance in Charlotte is $2,550 per year, while homeowners in Wilmington pay an average of $7,210 per year.
Homeowners insurance in North Carolina isn’t required by state law. However, if your home is financed, your lender will typically require you to have homeowners insurance to protect your property until you have paid your mortgage in full.
Basic homeowners insurance in North Carolina combines property and casualty coverages. It protects your house and attached structures, such as a porch, and covers medical expenses for persons accidentally injured on your property. However, standard homeowners insurance doesn't cover damage caused by floods, earthquakes, mudslides, mudflows, or landslides. It may also exclude windstorm or hail coverage. Therefore, you may want to consider the following additional coverage options:
- Flood insurance: Flooding is not typically covered under a homeowners policy. If you live in a flood plain, near a river, or on the coast, you should consider purchasing flood insurance. You can buy it through the National Flood Insurance Program (NFIP) managed by the Federal Emergency Management Agency (FEMA).
- Windstorm and hail coverage: If you live in an area prone to bad windstorms or hail, you can purchase separate windstorm and hail coverage. In North Carolina, this is usually written by the North Carolina Insurance Underwriting Association (NCIUA), also known as the Coastal Property Insurance Pool.
- Earthquake coverage: Standard homeowners insurance doesn't cover damage caused by earthquakes. However, you can add earthquake coverage as an endorsement to your policy.
- Green home coverage: This coverage pays to repair, replace, or rebuild your home with green materials following a covered loss.
- Water backup coverage: Sewage backup or sump pump overflows aren't typically included in standard coverages. Adding water backup coverage can help protect you in the event of heavy storms.
- Umbrella policy: An umbrella policy provides additional liability coverage if you exceed the personal liability coverage on your homeowners policy.
- Identity fraud protection: This optional coverage provides up to $25,000 in coverage for identity fraud.
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Cheapest insurance providers
The cost of homeowners insurance in North Carolina varies depending on where you live within the state. For example, the average cost of homeowners insurance in Charlotte is $2,550 per year, while homeowners in Wilmington pay an average of $7,210 per year. The average annual cost of home insurance in North Carolina is $2,490, which is 18% more than the national average.
State Farm
State Farm is the cheapest insurance company in North Carolina, with policies costing $846 per year, on average. State Farm also has one of the highest-rated customer services in the state. However, you won't be able to customize your policy with extra coverages or lower rates with discounts.
Farm Bureau
Farm Bureau is the second-cheapest insurance company in North Carolina. However, they don't have an online quote tool, so you'll need to speak to an agent to compare rates.
Travelers
Travelers offers standard homeowners insurance that covers dwelling, other structures, personal property, loss of use, and personal liability. You can also add extra protection to your policy, such as water backup protection or replacement cost coverage for your belongings. However, Travelers has received mixed reviews for its customer service.
Progressive
Progressive offers homeowners insurance in North Carolina with an average monthly price of $150.21 or $1,802.52 annually. Your rate could be higher or lower depending on factors such as home type, roof construction, and past claims. Progressive offers several discounts to make their homeowners insurance more affordable.
It's important to note that the cost of homeowners insurance can vary depending on your specific needs and circumstances. It's always a good idea to compare rates and coverages from multiple companies to find the best option for you.
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Frequently asked questions
The average cost of homeowners insurance in North Carolina is $2,490 per year, which is 18% more than the national average. However, the cost of insurance depends on where you live within the state. For example, the average cost of insurance in Charlotte is $2,550 per year, while homeowners in Wilmington pay around $7,210 per year.
The cost of homeowners insurance in North Carolina can be influenced by factors such as home type, roof construction, past claims, coverage amounts, and deductibles. Additionally, the risk of natural disasters, such as hurricanes, storms, and flooding, can impact insurance rates.
Homeowners insurance is not required by state law in North Carolina. However, if you have financed your home through a lender, they may require you to have insurance until you have fully paid off your mortgage.
Homeowners insurance in North Carolina typically covers damage caused by windstorms and hail. However, it usually does not cover flood damage or earthquake damage. Additional coverage for these perils may be purchased separately or added as endorsements to your policy.
