Travelers is the cheapest home insurance company in North Carolina, with an average rate of $734 per year.
The typical price of homeowners insurance in North Carolina is $1,800 per year. Besides Travelers, we also found cheaper-than-average rates from North Carolina Farm Bureau and State Farm.
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A good homeowners insurance policy should be affordable, reliable and broad enough for your needs. To find out which insurers offer the best coverage for homeowners in North Carolina, we gathered thousands of home insurance quotes and sifted through policy details from dozens of companies.
Best cheap home insurance in North Carolina
Best in NC
Best for most people: Travelers
Best for most people: Travelers
Best for military families: USAA
Best for military families: USAA
Best customer service: Farm Bureau
Best customer service: Farm Bureau
Cheapest options for homeowners insurance in North Carolina
The cheapest home insurance company in North Carolina is Travelers, where a policy costs $734 per year, on average.
That makes Travelers 59% less expensive than the average insurer statewide, and $222 per year less expensive than the second-cheapest option, North Carolina Farm Bureau.
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Best for most people: Travelers
Travelers stands out as the best home insurance option in North Carolina for the typical homeowner. Travelers has the best prices in the state. It also offers a variety of useful upgrades for consumers to add to their policies, such as protection for water backup or replacement cost coverage for their belongings.
Even without upgrades, homeowners insurance with Travelers comes with enough protection for most people at a price that's hard to beat. The company's average rate of $734 per year is the lowest in North Carolina. Travelers' list of discounts — like a new homebuyer discount and a green home discount — allows policyholders to lower their prices even further.
However, Travelers customer service has mixed reviews. Although it receives fewer customer complaints than other insurers of the same size according to the National Association of Insurance Commissioners (NAIC), Travelers received a poor customer satisfaction score from J.D. Power. That means homeowners can probably find a better customer service experience elsewhere.
Best-rated: North Carolina Farm Bureau
For home insurance customers who prioritize great service, while still valuing an affordable rate, we recommend North Carolina Farm Bureau. Although it's the second-largest homeowners insurance provider in the state, Farm Bureau maintains a network of agents who are truly local residents. This puts the company in a better position to provide coverage tailored to match your local needs.
Farm Bureau is the second-cheapest insurer statewide. Its average price of $956 per year is 47% less than the typical price in North Carolina overall. However, Farm Bureau doesn't have an online quote tool, which means homeowners will have to speak to an agent to compare rates.
North Carolina Farm Bureau has an A.M. Best financial strength rating of "A" (excellent). This means it has an excellent financial ability to pay out claims, even in times of high claim demand, such as after a hurricane.
Best for military families: USAA
USAA should be a familiar name to almost anyone with a connection to the armed forces — with good reason. USAA's stellar word-of-mouth reputation has a real basis in the numbers. It has an impressively low Complaint Index from the National Association of Insurance Commissioners (NAIC). Plus, an A.M. Best financial strength rating of A++ indicates that it's extremely unlikely to default on its claim payments.
Besides all these signs of quality service, USAA homeowners insurance comes with protections for damaged uniforms and replacement cost coverage — a useful way to replace your lost property for its full value. However, USAA is not the most affordable option In North Carolina. The average annual premium for a standard HO-3 policy is $1,775, which is slightly cheaper than the statewide average of $1,800.
USAA is only available to people who are associated with the U.S. military, or who have a current or former USAA member in their family. As long as you meet the eligibility requirements, we recommend USAA as a top option for home insurance and any other financial services you may need, from deposit accounts to loans.
Best homeowners insurance companies in North Carolina
The best-rated homeowners insurance companies in North Carolina are Farm Bureau and USAA. Both insurers received perfect scores in our national analysis of home insurance companies. Auto-Owners, Erie and State Farm were also highly ranked.
Biggest home insurance risks in North Carolina
Hurricanes are the biggest homeowners insurance concern for any state on the Atlantic Seaboard, and North Carolina is no exception. Each year, homes in the Tar Heel State suffer millions of dollars in damage from high winds and flooding. However, lightning strikes also cause significant losses to North Carolina homeowners.
To keep your property financially protected in any event, you need to understand the average costs of these risks — as well as the rules that home insurers follow when paying for them.
Hurricanes and flood insurance in North Carolina
Hurricanes and tropical storms are common occurrences in North Carolina, with an average of two tropical storms per year and a hurricane about every three years. Because hurricanes and floods can be devastating one year and nonexistent the next, the best policy is to have active insurance coverage at all times.
Wind damage from hurricanes and storms is almost always covered as part of your standard homeowners insurance. This includes things like shingles falling off the roof and trees being uprooted. However, you should always confirm this by reading your coverage details. If you live in an area that insurers see as high-risk, they may exclude wind damage from your base policy and require you to purchase it as an additional coverage.
Flood damage, on the other hand, is never covered by standard home insurance. Floods can be extremely expensive for insurers when they occur, striking thousands of insured properties at the same time. If you're in a high-risk flood zone, you should consider obtaining a separate flood insurance policy through the government-sponsored National Flood Insurance Program (NFIP) or a private flood insurer.
Lightning strikes in North Carolina
Lightning strikes on private property are also responsible for thousands of claims in North Carolina every year.
On average, insurance claims involving lightning cost North Carolina homeowners just over $11,500 per incident. The most serious incidents involve fires started by a lightning strike, while the most common are usually ground surges that overload electronics and appliances plugged into the home.
Homeowners insurance covers most kinds of damage that lightning can inflict on your property. However, the amount you actually receive from insurance for lightning-related losses depends on your ability to prove the cause of damage. This can be easier for fires or stricken trees than for ground surges.
North Carolina home insurance rates by city
The most expensive city for home insurance in North Carolina is Atlantic Beach, where we found a typical price of $9,503 per year — more than five times the state average.
By contrast, the cheapest city for homeowners insurance in the state is Hayesville, where an equivalent policy costs just $843 per year.
The cost of homeowners insurance varies depending on where you live. For example, you will likely pay more for coverage if your home is near the coast, and therefore susceptible to tropical storms, hurricanes and flooding.
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If you're curious how North Carolina's premiums compare with home insurance rates in the rest of the country, you should start by understanding the state's unique rate-setting process. While most other states require insurance companies to file proposed rate changes on an individual basis, the North Carolina Rate Bureau (NCRB) fulfills that function in the Tar Heel State. The NCRB represents all North Carolina property insurers and proposes annual rate changes (almost always increases) that must be approved by the state's Department of Insurance.
Our survey of home insurance quotes in North Carolina included estimates from eight of the state's largest insurers. For each company, we collected quotes from every ZIP code in the state. The sample property we used in all quotes was built in 1985 and insured to $183,000 — the median age and value of owner-occupied homes in North Carolina.
The specific insurers we covered included:
- Farm Bureau
- State Farm
To determine the best home insurance companies in North Carolina, we consulted data from the National Association of Insurance Commissioners, J.D. Power and A.M. Best, alongside internal research and analysis.
Our analysis used insurance rate data from Quadrant Information Services. We publicly sourced these rates from insurer filings, which means they should only be used for comparative purposes. Rates you request for your own coverage may be different.
What is the average price for home insurance in NC? ›
North Carolina homeowners pay an average of $1,317 per year for a home insurance policy with $250,000 in dwelling coverage, which is slightly less than the national average.How much is homeowners insurance a month in NC? ›
Its average rate for North Carolina homeowners is $1,549 a year, or $129 a month. That's $1,482 less than the state average and about $1,230 less than the national average ($2,777). North Carolina home insurance rates vary by location and coverage level, and may include a hurricane deductible that can affect rates.Is USAA home insurance cheaper than others? ›
USAA home insurance rates
USAA's average annual homeowners insurance cost is $1,724, according to NerdWallet's rate analysis. This is lower than the national average of $1,784 per year but higher than the average rates of State Farm and Allstate, two large national competitors.
- Best Overall: Amica Mutual.
- Best for Military: USAA.
- Best for Customer Satisfaction: State Farm.
- Best for Cheap Homeowners Insurance: GEICO.
- Best for Hawai'i: Island Insurance.
- Best for Alaska: Umialik.
- Best for Investors: Allstate.
Although insurance on your home is not required by North Carolina law, if your home is mortgaged your lender may require the purchase of insurance on your home. Additionally, if you are a renter your landlord may suggest that you purchase insurance to cover your personal property.Is home insurance worth paying? ›
Home insurance offers you a certain amount of cover, which you can use to rebuild your home should disaster strike. Your home is by far the most valuable thing that you own and many of you will have spent years saving for it.What is a good monthly payment for home insurance? ›
Home insurance costs an average of $126 per month in the United States, but prices vary significantly by state. The average cost of home insurance ranges from $57 to $242 per month, depending on which state you live in.Is it better to pay homeowners insurance monthly or yearly? ›
Benefits of Paying Homeowners Insurance Yearly
Typically, you'll get a lower rate than you would if you paid it monthly. Even if your mortgage lender allows you to make monthly payments, when you're allowed to pay the premium outright, the savings can be significant.
North Carolina's property tax rates are nonetheless relatively low in comparison to what exists in other states. The average effective property tax rate in North Carolina is 0.70%, which compares rather favorably to the 0.99% national average.How affordable is USAA? ›
In addition to strong survey scores, USAA has the lowest rates and is No. 1 in our Cheapest Car Insurance Companies of 2023 rating. On average, USAA customers pay $1,000 annually for coverage, nearly 35% less than the national average.
What is the most basic homeowners insurance policy? ›
An HO-1 policy is the most basic of all the types of homeowners insurance policies. It only provides coverage for the structure of your home, attached structures like garages, and appliances and home features like carpeting. It does not include coverage for personal property, liability or additional living expenses.Can anyone get USAA homeowners insurance? ›
Who can join? Our products and services are open to current and former military and their spouses. Children of USAA members can join, too.What is the most trusted insurance company? ›
- USAA. 4.3. U.S. News Rating. USAA is the best insurance company in our ratings. ...
- State Farm. 4.2. U.S. News Rating. ...
- Farmers. 4.1. U.S. News Rating. ...
- Nationwide. 4.1. U.S. News Rating. ...
- Geico. 4.1. U.S. News Rating. ...
- Allstate. 4.0. U.S. News Rating. ...
- Travelers. 4.0. U.S. News Rating. ...
- Progressive. 3.9. U.S. News Rating.
Most insurance companies require homeowners to purchase replacement cost coverage worth at least 80% of their home's replacement cost in order to receive full coverage.How do you negotiate with homeowners insurance? ›
- Get Quotes from Multiple Insurance Companies. ...
- Research How Much It Would Cost to Rebuild Your Home. ...
- Monitor Your Credit. ...
- Consider Disaster Resistant Improvements. ...
- Consider Installing a Home Security System. ...
- Take Advantage of Discounts. ...
- Choose a Deductible You Can Afford.
If you have a mortgage on it, your lender will require you to have insurance until the loan is paid off. In fact, lenders can legally force borrowers to carry insurance to cover the amount of the mortgage. In addition, going without insurance puts you at risk for life-altering financial loss.Does home insurance cover storm damage to roof? ›
Typically, your home insurance policy can cover the following issues resulting from hail, wind, rain, snow or ice: roof damage. water damage. wind damage.Who is liable when a tree falls on a neighbor's property in North Carolina? ›
If the tree was healthy and it fell due to high winds during the disaster, your neighbor is not responsible. If the tree was in poor condition prior to the disaster, then your neighbor should have had the tree removed or taken other reasonable measures prior to the storm.What should you not say to homeowners insurance? ›
You should never admit any fault or even partial liability for what occurred. Often, the less you say, the better. Don't offer theories about the damage. All repair and replacement costs should be substantiated rather than based on your opinion.How to choose the right home insurance? ›
- provides coverage in your area.
- has competitive rates and good discounts.
- has a good financial strength rating.
- has good reviews from professional sources and customers.
- offers 24/7 assistance through its website, live operators, or a local agent.
Why would homeowners insurance be so high? ›
Insurance companies are increasing rates to make up for billions of dollars in losses due to worsening climate disasters, and surging inflation means homes require more dwelling coverage to pay for rebuild costs. The combination of these factors has resulted in some fairly drastic rate increases in 2022.Can I remove my home insurance from escrow? ›
Yes, you can typically remove homeowners insurance from an escrow account, but it may vary depending on your mortgage lender and the state you live in. Some states require escrow accounts on homes that were purchased with mortgage loans.Is it better to pay homeowners insurance through escrow? ›
Escrow accounts can provide peace of mind and convenience as they reduce the burden of having to pay your homeowners insurance premiums and property taxes yourself. Another benefit is that you can still shop around with different insurers whenever you like and save money by changing your policy.Is 200 a month good for insurance? ›
Yes, $200 per month is a lot for car insurance. Only four states have average rates for full coverage higher than $200 per month, and no state has average rates that high for minimum coverage.Can you pay for homeowners insurance with a credit card? ›
If your insurance is escrowed, you can still choose to pay for the full year at closing or up front via credit/debit card.Can you pay homeowners insurance monthly with a mortgage? ›
Some homeowners may think their home insurance is included in their mortgage because they make a single monthly payment that covers both their homeowners insurance premium and their monthly mortgage payment. However, homeowners insurance is not included in your mortgage.What is the difference between homeowners insurance and homeowners insurance premium? ›
A homeowners insurance quote is the estimated cost of a home insurance policy before you decide to buy it. Assuming you like the quote and want to purchase the policy, the home insurance premium is the amount you agree to pay for the coverage.At what age do you stop paying property taxes in North Carolina? ›
Short Description: This program excludes the greater of the first $25,000 or 50% of the appraised value of the permanent residence of a qualifying owner. A qualifying owner must either be at least 65 years of age or be totally and permanently disabled.Which county in NC has the highest taxes? ›
There are a total of 458 local tax jurisdictions across the state, collecting an average local tax of 2.221%. Combined with the state sales tax, the highest sales tax rate in North Carolina is 7.5% in the cities of Durham, Durham, Chapel Hill, Wake Forest and Durham (and fourteen other cities).Do people over 65 pay property tax in NC? ›
North Carolina excludes from property taxes a portion of the appraised value of a permanent residence owned and occupied by North Carolina residents aged 65 or older or totally and permanently disabled whose 2022 income does not exceed $33,800 annually.
Is USAA good anymore? ›
USAA received an overall satisfaction score of 82 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June 2022. To put that in perspective, the average score among seven insurers was 77, and the highest was 82.Why are USAA rates so low? ›
USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members.What are 2 things not covered in homeowners insurance? ›
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.What are the 2 types of home insurance? ›
1. Home structure insurance covers the permanent structure of the house, including kitchen, bathroom fittings and roof, from any kinds of dangers and risks. 2. Contents insurance covers the contents inside the house, such as documents, electronics, and jewellery, from damages and loss owing to theft, fire,flood, etc.What are the three types of homeowners insurance? ›
The three main types of property insurance coverage include actual cash value, replacement cost, and extended replacement cost.What qualifies you to join USAA? ›
To join USAA, separated military personnel must have received a discharge type of Honorable or General Under Honorable Conditions. Eligible former dependents of USAA members may join USAA. The trademarks, logos and names of other companies, products and services are the property of their respective owners.What proof do you need to join USAA? ›
Please provide a copy of an acceptable military document and government-issued ID. Examples of acceptable military documents include DD214(long version), Discharge Certificate, Leave & Earnings Statement or military orders if you're actively serving. If you are in a Delayed Entry Program please provide your DD Form 4.How to get USAA insurance without military? ›
USAA insurance is only for military members' and veterans' direct family members. Anyone besides a current or former spouse and children will not be eligible for USAA insurance coverage.Who is the top three insurance company? ›
Progressive is the No. 1 auto insurance company in the country in terms of market share, followed by State Farm, Geico and Allstate.Does age matter in homeowners insurance? ›
Age of the home: Buying homeowners insurance for a 100-year-old house is very different from buying insurance for a house less than 40 years old. Homeowners insurance rates are likely higher for older homes or for homes in need of repair.
What is a standard homeowners insurance policy? ›
Standard Homeowners Insurance Coverage. A standard homeowners insurance policy provides coverage to repair or replace your home and its contents in the event of damage. That usually includes damage resulting from fire, smoke, theft or vandalism, or damage caused by a weather event such as lightning, wind, or hail.What is the difference between HO3 and HO5? ›
The HO3 and HO5 policies both cover a policyholder's house on an open peril basis. The difference is in how it protects personal property. HO5 comes with better coverage, meaning it also comes with a higher price. The value is based on whether the additional cost is worth the benefit.What are 5 ways to reduce homeowners insurance costs? ›
- Shop around.
- Raise your deductible.
- Don't confuse what you paid for your house with rebuilding costs.
- Buy your home and auto policies from the same insurer.
- Make your home more disaster resistant.
- Improve your home security.
- Seek out other discounts.
- Maintain a good credit record.
You should never admit any fault or even partial liability for what occurred. Often, the less you say, the better. Don't offer theories about the damage. All repair and replacement costs should be substantiated rather than based on your opinion.Is North Carolina insurance expensive? ›
In 2023, the average North Carolina car insurance cost is $1,446 annually for full coverage and $432 annually for state minimum coverage limits. Both these rates are well below the national average car insurance rate of $2,014 per year for full coverage and $622 per year for minimum coverage.How much is home insurance in Raleigh NC? ›
The Average Cost of Homeowners Insurance in Raleigh for 2022
Homeowners insurance in Raleigh costs an average of $1,508 per year, which is higher than the state average by $10. Raleigh's average cost of homeowners insurance is lower than the national average by about $595 per year.
The cheapest car insurance companies in North Carolina
In North Carolina, a full coverage policy costs, on average, $1,446. This annual premium is 28 percent lower than the national average. Minimum coverage in North Carolina averages $432 per year, 35 percent lower than the national average.
In fact, home insurance premiums were up an average of 12.1% last year, according to a Policygenius analysis of policy renewals from May 2021 to May 2022.  "Policygenius Home Insurance Pricing Report (2022)." Accessed August 01, 2022. For homeowners whose premiums went up, the average increase was $134.Who is the largest insurer in North Carolina? ›
|Rank in North Carolina||Company||Market share % in North Carolina|
|2||Berkshire Hathaway Inc.||12.26|
|4||National General Holdings Corp.||10.14|
North Carolina Motor Vehicle Law requires that Automobile Liability coverage be continuously maintained. The minimum coverage requirements are $30,000 Bodily Injury for each person, $60,000 total Bodily Injury for all persons in an accident and $25,000 for Property Damage.
Did NC insurance rates go up? ›
N.C. Rate Bureau requests 28.4 percent rate increase for auto insurance | NC DOI.Do you have to have wind and hail insurance in NC? ›
Wind and Hail Insurance is a critical component of protecting your home and other precious assets, and if you live in certain areas and have a mortgage, it may be required. In the state of North Carolina, a Wind and Hail policy might not be included as part of your homeowners' coverage.Can you get flood insurance in NC? ›
Flood insurance is available to homeowners in North Carolina through the National Flood Insurance Program (NFIP), which is a federally backed program, as well as through private insurance companies.How much is home insurance in the Outer Banks? ›
Based on a premium costing an average of $2,400 per year in the Outer Banks sections of the three counties, the price of the same policy will be going up $235.20 starting May 1, 2020. The rest of northeastern North Carolina will be hit with a 1.5-to-2.5 percent hike.Is Geico cheaper than other insurance? ›
State Farm vs. Geico.
Will my policy provide the required liability coverage when traveling to other states? Yes, your policy will automatically meet the minimum requirements of other states in which you are traveling.How can insurance be cheaper? ›
- Shop around. ...
- Before you buy a car, compare insurance costs. ...
- Ask for higher deductibles. ...
- Reduce coverage on older cars. ...
- Buy your homeowners and auto coverage from the same insurer. ...
- Maintain a good credit record. ...
- Take advantage of low mileage discounts.
Frequently Asked Questions - Age of Home
Yes, home insurance rates are generally higher for older homes. Rates are high because of the risks associated with them. Before you buy an older home, consider the amount of work you need to replace most of the house.