Orlando Harmon
Finding affordable homeowners insurance in North Carolina can be challenging due to rising premiums, insurance companies exiting the state, and severe weather events. The average cost of home insurance in North Carolina is $2,403 per year for $300,000 in dwelling coverage, but rates vary depending on location and home characteristics. To find affordable coverage, it's recommended to shop around and compare quotes from different companies. Some of the cheapest insurance providers in North Carolina include State Farm, Farm Bureau, Allstate, and USAA, each offering a range of coverage options and customer service experiences.
| Characteristics | Values |
|---|---|
| Average cost of homeowners insurance in North Carolina | $2,403 per year or $200 a month for $300,000 in dwelling coverage. Other sources state the average cost to be $2,490, $2,941, or $1,545 per year. |
| Average premium based on dwelling coverage for average home value | $300,000 in dwelling coverage and $100,000 in liability coverage. |
| Average annual rate for cheapest insurance company | State Farm: $1,170, $1,290, or $846. |
| Second cheapest insurance company | Farm Bureau.. |
| Companies with the best homeowners insurance in North Carolina | Chubb, Erie, Amica, USAA, Auto-Owners Insurance, Travelers, State Farm. |
| Factors that affect insurance rates | Location, size, and age of the home. Rebuild cost and proximity to a fire station. Credit-based insurance score. |
| Types of damage covered by basic homeowners insurance policy | Hurricane and tropical storm damage, wind damage. |
| Types of damage not covered by basic homeowners insurance policy | Flood damage, damage from earthquakes, water backup, or personal injury. |
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What You'll Learn
The average cost of home insurance in North Carolina
It is important to note that rates are expected to rise in the coming years. The Insurance Department has agreed to an increase of about 15% by 2026, with an average 7.5% increase already implemented on June 1, 2025. This rise in rates is attributed to factors such as severe weather occurrences, inflation, and rising material costs.
The cost of home insurance in North Carolina also varies depending on location and coverage level. For example, the ZIP code 28445 has the highest average annual cost of $8,737. Additionally, certain counties in North Carolina are subject to a hurricane deductible, which can impact rates.
When considering affordability, it is worth noting that the cheapest homeowners insurance company in North Carolina, according to ValuePenguin, is State Farm, with an average rate of $1,170 per year. US News, on the other hand, claims that the cheapest option is Amica, with an average annual rate of just over $1,290.
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What does a standard insurance plan cover?
Homeowners insurance in North Carolina is not required by law. However, if your home is mortgaged, your lender may require you to purchase insurance. A standard homeowners insurance plan in North Carolina covers your home at its current value with no depreciation. This includes detached garages, tool sheds, etc. It also covers personal property, including furniture, clothing, and electronics.
A standard HO-3 home insurance policy covers 16 named perils like theft, vandalism, and hail. However, there are some hazards that aren't included in a standard home policy, such as flooding, earthquakes, mudslides, mudflows, and landslides. Windstorm and hail coverage may also be excluded from your standard coverage, depending on your location and insurance company.
Most policies do not protect against losses from floods. However, you can purchase a separate policy, such as a private flood insurance policy or NFIP, to protect your property and belongings against flood damage. Similarly, an earthquake endorsement may be necessary to cover repairs due to earthquake damage, which typically is not covered under standard policies.
Homeowners insurance also provides liability coverage for accidents that injure other people or damage their property. It covers medical expenses for persons accidentally injured on your property, excluding members of your household. It also provides coverage for additional living expenses if your home is damaged by an insured peril and you cannot live in it.
Some insurance companies offer enhanced versions of their standard homeowners plans, providing increased liability and credit card protection. You can also purchase add-ons like water backup, sump pump overflow, and special computer coverage.
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Companies with the cheapest rates
The cheapest homeowners insurance in North Carolina will depend on a variety of factors, including the location, size and age of your home, its rebuild cost, and its proximity to a fire station. Here are some of the companies with the cheapest rates:
State Farm
State Farm offers a great combination of good customer service and cheap coverage. It has the lowest rates in the state and some of the highest-rated customer service. The average annual rate is just over $1,290, or $846 per year according to another source. However, you won't have as many options to customize with extra coverages or lower rates with discounts.
Farm Bureau
Farm Bureau offers the convenience of knowledgeable local agents and some of North Carolina's cheapest coverage. It is a strong option for home insurance customers who want great service and an affordable rate.
USAA
USAA sells homeowners insurance to veterans, active military members and their families. The company’s homeowners insurance has certain features that other insurers may charge extra for. For example, USAA automatically covers your personal belongings on a replacement cost basis. However, USAA can be expensive.
Chubb and Erie
Chubb and Erie are among the best home insurance companies in North Carolina, according to NerdWallet.
Allstate
According to Policygenius, Allstate is the cheapest homeowners insurance company in North Carolina, costing about 40% less than the statewide average.
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How to find the right coverage for your property
Homeowners insurance is a necessity as it protects your home and possessions against damage or theft. It also covers destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. When determining how much homeowners insurance you need, start by considering the following:
Determine the cost to rebuild your home
First, you need to determine the cost of rebuilding your home. You can find a base cost by multiplying your home's total square footage by the per-square-foot building cost in your area. You must also account for the cost of rebuilding other structures like pools, garages, and fences.
Inventory your items
Conduct a home inventory to assess the value of your belongings. This will help you figure out how much insurance you need and serve as a record if you need to make a claim. Most policies will insure your belongings between 50% and 70% of the policy amount. You can insure your belongings for their actual cash value or for their replacement cost.
Assess your risk factors
Consider the risk factors that could impact your home and property. Do you live in an area prone to floods, hurricanes, or earthquakes? If so, you may need additional coverage for these disasters. Also, consider the type of exterior wall construction, the style of your house, and any improvements or renovations you've made that have added value to your home.
Shop around for quotes
To get the most coverage at the best price, shop around and get quotes from multiple companies. Compare the covered perils, coverage limits, and deductibles offered by each insurer. Pay attention to any discounts or bundling opportunities that could lower your premiums.
Review your policy carefully
Always read through the fine print of your policy to understand what is and isn't covered. Make sure you have the right level of protection for your property and consider adding any necessary endorsements or riders to cover high-value items.
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How to save on your insurance premiums
The average cost of home insurance in North Carolina is $2,403 per year for $300,000 in dwelling coverage. However, rates vary depending on your coverage levels, where you live, and your home's specifics. Here are some ways to save on your insurance premiums:
- Shop around and compare quotes from different insurance companies. The cheapest company will depend on factors such as your home's location, size, age, and rebuild cost.
- Consider bundling your home and auto insurance. For example, AAA offers homeowners insurance that includes roadside assistance and other benefits.
- Pay your premiums all at once instead of in monthly installments.
- Choose a higher deductible. This means you'll pay less to your insurance company when your home is damaged, but keep in mind that you should still choose a deductible that you can afford in an emergency.
- Re-shop your home insurance every year to get the best rates.
- Look for insurance companies with discounts or lower rates for extra coverages. For example, State Farm offers cheap coverage but fewer options to customize with extra coverages.
- Consider the insurance company's customer service ratings. You may be able to find a better customer service experience with a different company, which can save you time and hassle in the long run.
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Frequently asked questions
The average cost of homeowners insurance in North Carolina varies depending on the source. According to one source, the average cost is $2,403 per year, or about $200 a month, for $300,000 in dwelling coverage. Another source states that the average cost is $2,490 per year, while yet another source claims that the average cost is $2,941 per year, or $245 per month.
State Farm is consistently ranked as one of the most affordable homeowners insurance companies in North Carolina, with an average annual rate of around $846 to $1,290. Other affordable options include Farm Bureau, which offers the convenience of knowledgeable local agents, and Travelers, which provides many ways to add to your policy.
The cost of homeowners insurance in North Carolina is influenced by various factors, including the location, size, and age of the home. The rebuild cost and proximity to a fire station also impact the rates. Additionally, rates may vary by county and ZIP code, and certain areas may be subject to a hurricane deductible, which can affect the overall cost.
