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Finding a fair price on home insurance is top of mind for many North Carolina homeowners. The best way to find the coverage you need at a reasonable cost is to compare rates among multiple home insurance companies. We evaluated average rates for large home insurance companies in North Carolina to help you find an affordable policy.
Cheap Home Insurance in North Carolina Cost Comparison
Related: Best home insurance companies
Homeowners Insurance Cost Factors
Several cost factors will influence your ability to find cheap home insurance in North Carolina, such as:
- The materials your home is made of, such as wood or masonry
- The cost to rebuild the home
- The age of your home
- Your personal claims history
- The claims history of your location
- The fire rating of your location
- The types of coverage you choose
- Your policy limits
- Your deductible amount
- Your credit
What Does Homeowners Insurance Cover?
A standard home insurance policy, also known as an HO-3, covers a home for problems like theft, fire and tornadoes. It won’t cover you for problems excluded from your policy, like floods, sinkholes, earthquakes, wear and tear, power failure, and insect and vermin infestations.
Your personal belongings are covered for specific problems with a standard policy. Fire, theft, vandalism and explosions are just some examples of problems covered by home insurance.
Here are the main types of coverage in a standard home insurance policy:
- Dwelling: This covers the costs to repair or rebuild your home if it’s damaged. It also covers attached structures, like a deck or garage.
- Other structures: This covers the costs to repair or rebuild structures that are not attached to your house, like a gazebo or fence.
- Personal property: This covers the costs to repair or replace your personal belongings, which includes items such as your furniture, art, clothing, rugs and other items.
- Liability: This pays for property damage and injuries you accidentally do to others. For example, if someone on your property falls and injures themselves, your liability insurance can cover your legal costs and a settlement or court judgment against you.
- Medical payments to others: This covers smaller medical claims made by guests, no matter who was at fault for the injury. For example, if your friend slips on your stairs, this coverage could pay for their trip to the emergency room. Coverage is usually sold in small amounts, such as $1,000.
- Additional living expenses: If you are displaced because of a problem covered by your policy (like a fire), additional living expenses coverage pays for costs like takeout meals, hotel bills and other expenses, like pet boarding or laundry services.
Related: How much home insurance do you need?
What’s Not Covered by Homeowners Insurance?
Many problems are not covered by a standard home insurance policy. Common exclusions include problems like sinkholes, earthquakes, floods, nuclear hazard, power failure, vermin and insect infestations, intentional loss and wear and tear.
We recommend you read your policy closely to understand what is excluded from coverage.
Most Common Disasters in North Carolina
North Carolina homeowners have to contend mainly with severe storms, hurricanes and flooding.
On Aug. 3, 2020, Hurricane Isaias made landfall near Ocean Isle Beach, North Carolina as a Category 1 hurricane and devastated the area. The storm also produced six confirmed tornadoes. As a result, a federal disaster was declared.
Here’s a look at federal disasters declared in North Carolina since 1953.
Disasters by Month in North Carolina
September is the peak of hurricane season in North Carolina and by far the busiest month for declared disasters.
Disasters in North Carolina by Year
Since 2000, North Carolinians have dealt with an average of about two declared disasters per year, but recent years have been busier than others.
Since 2018, there have been 10 declared disasters. Eight of those declared disasters were related to severe storms and hurricanes, while two declared disasters in 2020 were related to the Covid-19 pandemic.
Flood Insurance in North Carolina
A standard home insurance policy does not cover flood damage. With the number of severe storms and hurricanes that hit North Carolina, you don’t want to go without flood insurance.
On Aug. 16 and 17, 2021, Tropical Storm Fred hit North Carolina, which caused devastating floods. The storm damaged more than 680 homes in western North Carolina and six people died. It was declared a federal disaster.
Many areas in North Carolina experience flooding that is costly and destructive, but may not have been declared a federal disaster. Here’s a look at the number of recent floods in North Carolina.
Financial help from the government after a flood may be limited or not available. It’s best to have your own flood insurance to rely on. Most people who purchase flood insurance get it from the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available.
FEMA’s Individuals and Households Program (IHP) can provide financial and direct assistance after an emergency or major disaster (if you are eligible). This program helps folks find housing after a problem caused by a disaster and that’s not covered by insurance or other sources.
Tips for Buying Homeowners Insurance in North Carolina
First time home buyers and longtime homeowners both want the same thing: good coverage at a fair price. Here are some tips to buy homeowners insurance in North Carolina:
- Assess your rebuilding costs. Your dwelling coverage should be adequate enough to cover the amount it would cost to rebuild your home. To get an idea of this cost, talk to your insurance agent or a trusted contractor about what the cost would be to rebuild your home with equitable materials and account for the labor costs in your area.
- Cover your assets. Your liability coverage should be adequate enough to cover what you could lose in a lawsuit, such as your savings.
- Upgrade to replacement cost coverage. If you want your damaged items to be replaced with new items, it’s better to buy replacement cost coverage. Actual cash value coverage will only pay the depreciated value of your items.
- Schedule your high-value items. A standard home insurance policy has sub-limits on certain types of items, like jewelry. You may want to schedule personal property so your high-value items are insured for what they are worth.
- Close coverage gaps. You can buy add-on coverage types like water backup and sump-pump overflow coverage, or higher limits for landscaping.
- Ask for discounts. You may qualify for discounts such as home security, upgraded electrical wiring or bundling your auto with your home insurance.
- Look at financial ratings. Check your insurer’s financial strength ratings from companies such as Standard & Poor’s or A.M. Best.
- Compare quotes from multiple insurers. Not all insurers price their products the same. The best way to save is to get quotes from several different insurance companies.
Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with dwelling coverage of $300,000 and liability coverage of $100,000.
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