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North Carolina Homeowners Insurance

Homeowners Insurance in North Carolina: Complete Consumer Guide

Are you a North Carolinian or thinking of becoming a homeowner here? We have some state facts for you. Hunters and gatherers settled in North Carolina over 10,000 years ago. The Cherokee, Woodland, and Mississippian Native-American tribes also established their homes here. North Carolina was the 12th state to join the union after America declared independence from Great Britain. The nickname for North Carolina is the “Tar Heel State” because tar and turpentine used to be sold from the state’s longleaf pine trees. According to legend, it was precisely this substance that slowed the advancing British during the Revolutionary War. The Appalachian Mountains cover the western region of North Carolina and some peaks are more than a mile above sea level. You’ll find sandy beaches here, cultural venues in the bustling cities and lots of different types of industry.

Types of policy for Homeowners Insurance in North Carolina

There are several standard policies that apply to homeowners and owners of condominium units. Here they are:

HO-1 is The Basic Coverage Form, which provides minimal coverage. Some insurers do not off it. It applies to the dwelling and personal property and insures against fire, lightning, vandalism and malicious mischief, and extended coverage perils, including riots, explosions, vehicles (damage inflicted by a vehicle to the dwelling), civil commotion, smoke, hail, aircraft, windstorm, and breakage of glass, which is part of a building.

HO-2 is The Broad Coverage Form, which applies to both dwelling and personal property and includes everything in HO-1 as well as: falling objects, the weight of snow, sleet, and ice, damage to water heating systems, volcanic eruption, damage from plumbing or appliances, freezing of plumbing or appliances, damage from artificially generated currents. Some coverage only applies if the damage is sudden and accidental not due to deterioration or negligence in maintenance.

HO-3 is The Special Coverage Form has the most extensive coverage of all the forms. It has an “open perils” policy, which means that if it’s not specifically excluded in your declarations page, you are covered. These exclusions include flood and earthquake, war or nuclear accident. Personal property is protected in the same way as it is in the broad form.

HO-6 is The Condominium Form, which provides broad form coverage for personal property. The amount of coverage for structural coverage varies according to the policy and the unit. It’s important to speak with a trusted agent about these specifics if you are insuring a condo unit.

Coverage A is Dwelling Coverage, which protects the main structure of the home. It does not include detached structures, like sheds and garages.

Coverage B is Other Structure Coverage, which includes fences, decks and built-in appliances. It also covers sheds and garages and heating systems.

Coverage C is Personal Belongings Coverage, which protects your belongings. It’s sometimes called Contents Coverage. The contents of your shed and garage are covered in this portion of the policy.

Coverage D is Temporary Living Expenses Coverage, which would protect you should you not be able to live in your home while it’s being repaired. This coverage would reimburse you for food and lodging.

Coverage E is Liability Insurance, which would protect you if someone files a lawsuit based on injuries in your home.

There are optional coverages, too, including Sump Pump Overflow Coverage, Credit Theft Protection and Monitoring and Equipment Breakdown, which would cover home systems. These are important coverages to consider because they will otherwise require expensive fixes.

In addition to optional coverages, you may need to buy separate policies that would cover your home in the case of state declared disasters. Flood Insurance and Earthquake Insurance are sold separately from a basic home insurance policy.

What factors affect rates on homeowners insurance in North Carolina?

What most impacts homeowners insurance rates is construction type. How big is your home and how much will it cost to rebuild? Are the construction materials flame retardant? How is your credit score? All these and other factors will determine your rate. But it’s important to shop around for the best value. SmartFinancial can help you compare several companies in just a few minutes.

Top 5 disasters in the State of North Carolina

North Carolina federally declared Hurricane the most common disaster. with 31 counts since 1953, followed by Severe Storms, Flood, Fire, and Severe Ice Storm disasters. Here are the top federally declared disaster in North Carolina:

Rank Declaration Title Disaster Number
1Hurricane31
2Severe Storms10
3Flood8
4Fire5
5Severe Ice Storm4

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in North Carolina?

On average, homeowners insurance costs about $1,118 in North Carolina.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is North Carolina a safe state?

2019 Crime in North Carolina Crime Number Crime Rate*
Property Crime247,2362,357.3
Burglary54,447519.1
Larceny-Theft174,7281,666.0

*Rate per 100,000 inhabitants

Safest Cities in North Carolina by Property Crime*

  • Holly Springs, NC has a population of 38,577 with a Property Crime rate of 6.6 per 1k. The city average home value is approximately $354,742.
  • Elon, NC has a population of 12,214 with a Property Crime rate of 6.7 per 1k. The average home value there is about $219,245.
  • Pinehurst, NC came in third as the safest city in the state of North Carolina and has a population of 16,522 with a Property Crime rate of 6.8 per 1k. Its home value averaged at about $300,303.
  • Wake Forest, NC has a population of 46,145 with a Property Crime rate of 8.5 per 1k. Its average home value is $352,063.
  • Cary, NC has a population of 172,525 with a Property Crime rate of 9 per 1k. The city home value averaged $401,815.

    *Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

    Compare Home Insurance Rates in North Carolina

    Top homeowners insurance companies in North Carolina

    Farm Bureau gets high ratings in North Carolina too. Even though they specialize in farm and ranch coverage, they also cover standard homes too. Farm Bureau gets an A+ from BBB.

    Erie Insurance is another top choice for east coast residents. There are a wide range of coverage and discount options with Erie, which gets an A+ from BBB.

    North Carolina Home Insurance FAQs

    What is the standard deductible for homeowners insurance?

    Most homeowners set their deductible at $1,000, which lowers premiums but is not too difficult to pay if you have to file a claim. And you must pay the deductible before you’re covered, so if you would rather a smaller one, by all means, set one but your monthly payments will be more expensive. And vice versa.

    Can I use my own contractor on an insurance claim?

    You can use the insurance claim money however way you wish, but it’s highly advised that you have a professional fix the problem. Otherwise, it will most likely not be covered in a future claim.

    How to get insurance to pay for roof replacement?

    Whether or not your insurance company will pay for your roof to be replaced depends on whether or not it was in disrepair due to neglect or poor maintenance. An aged roof may not be covered or may only be partially covered. Here’s more about roof-related home insurance claims.

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