The Best and Cheapest Home Insurance in North Carolina for 2022

We analyzed rates and companies across the state to find the best and most affordable options.
Apr 25, 2022

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The average cost of homeowners insurance in North Carolina is $1,700 per year, or about $142 per month, according to a NerdWallet analysis. That’s slightly less than the national average of $1,784 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in North Carolina. Our sample rates are for a home with $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible. Your own rates will be different.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

The best homeowners insurance in North Carolina

Several of NerdWallet's Best Home Insurance Companies offer policies in North Carolina. Here they are, along with their average annual premiums:

Company

Average annual rate

NerdWallet star rating

$1,721

5.0

NerdWallet rating 

$2,382

4.5

NerdWallet rating 

$1,714

4.5

NerdWallet rating 

*USAA homeowners policies are available only to active military, veterans and their families.

More about the best home insurance companies in North Carolina

Nationwide: A standard Nationwide home insurance policy may include ordinance or law coverage. That means if you need to bring your home up to current building codes as part of a claim, Nationwide pays some or all of the costs. Nationwide may also cover unauthorized credit or debit charges as part of its standard policy.

Beyond the standard coverage, you can choose other options to customize your homeowners policy. For example, you may want to add coverage for identity theft or damage from backed-up sewers and drains.

You may also want to consider “Brand New Belongings” coverage, which ensures that if your stuff is stolen or destroyed, you’ll be paid out enough to buy brand-new replacements.

Erie: Founded in 1925 in Pennsylvania, Erie sells policies in a dozen states, including North Carolina. The company offers one coverage option that many insurers don’t: guaranteed replacement cost. If you add this to your policy, the company will pay what it takes to rebuild your home after a covered disaster, even if it costs more than your dwelling coverage limit.

You can also choose to cover your personal belongings on a “replacement cost” basis. Say someone breaks in and steals your gaming laptop, which you bought for $1,000 a couple of years ago. If your stuff is covered on an “actual cash value” basis, your insurer would pay only what the laptop was worth at the time of the theft — which might not be enough to buy a brand-new replacement. Replacement cost coverage ensures you’ll be paid enough to buy a new laptop (minus your deductible).

Erie offers a generous discount if you buy both homeowners and auto insurance policies. You may also be able to save if you have smoke alarms, a burglar alarm or a sprinkler system in your home.

The company draws fewer complaints than expected for an insurer of its size, according to the National Association of Insurance Commissioners. Learn more about Erie home, auto and life insurance with our Erie review.

USAA: This company sells homeowners policies only to veterans, active members of the military and their families. If you fit into one of those groups, USAA’s policies are worth considering.

The company offers perks specifically for military members, including deductible-free coverage for military uniforms and coverage for personal belongings in a war zone. It also includes replacement cost coverage for all personal belongings, which means you’ll get enough to buy brand-new replacements if your stuff is stolen or destroyed.

Discounts may be available if you bundle home and auto policies with USAA or if you haven’t filed any claims within the past five years.

The company receives far fewer consumer complaints than expected for an insurer of its size, according to the NAIC. Learn more by reading our USAA home insurance review.

The cheapest homeowners insurance in North Carolina

The companies above aren’t your only options. Below are the insurers we found with average annual rates below the North Carolina average of $1,700.

Company

Average annual rate

NerdWallet star rating

State Farm

$790

4.0

NerdWallet rating 

Kemper

$1,426

3.0

NerdWallet rating 

North Carolina Farm Bureau

$1,558

Not rated

Lititz Mutual

$1,565

Not rated

More about the cheapest companies

Here’s a bit more information about each of North Carolina’s cheapest insurers.

State Farm: The largest homeowners insurer in the U.S., State Farm has not only competitive rates but also a strong track record for customer service. The company has drawn fewer consumer complaints to state regulators than expected for an insurer of its size, according to the National Association of Insurance Commissioners. You may be able to save on your premium if you bundle multiple State Farm policies or have fire, smoke or burglar alarms in your home. Read NerdWallet’s State Farm home insurance review to learn more.

Kemper: Kemper sells insurance by phone and through independent agents. On the company’s website, you can file claims, make payments and see policy information. The company has drawn more consumer complaints to state regulators than expected for an insurer of its size, according to the NAIC.

North Carolina Farm Bureau: In order to buy homeowners insurance from the North Carolina Farm Bureau, you need to be a member. The cost is $25 a year and includes not only access to insurance but also other member benefits such as travel discounts. Learn more about Farm Bureau insurance.

Lititz Mutual: This Pennsylvania-based insurer sells policies through independent agents in eight states, including North Carolina. You can add extra packages of coverage to a standard homeowners policy, including broader liability coverage. The company has drawn significantly more consumer complaints than expected for an insurer of its size, according to the NAIC.

The best North Carolina homeowners insurance for different scenarios

Dozens of factors affect what you pay for homeowners insurance, ranging from the age of your house to the state of your credit. Here are the most affordable home insurance options for a few common scenarios.

The best homeowners insurance in North Carolina for those with poor credit

Studies have shown that homeowners with poor credit are more likely to file a claim than those with good credit. That’s why many insurers use credit-based insurance scores — which are similar to but not identical to traditional credit scores — to help set homeowners insurance rates. If you have poor credit, you’ll likely pay more.

Below are the companies that offer the most affordable rates, on average, for North Carolina homeowners with poor credit.

Company

Average annual rate

NerdWallet star rating

North Carolina Farm Bureau

$1,558

Not rated

Lititz Mutual

$1,565

Not rated

State Farm

$1,820

4.0

NerdWallet rating 

Heritage

$2,244

Not rated

Kemper

$2,517

3.0

NerdWallet rating 

The best homeowners insurance in North Carolina for those with a claims history

You can expect your insurance premium to go up for a few years after you file a claim. But not all insurers hike their rates by the same amount, so it’s worth shopping around. Below are the companies with the cheapest rates, on average, for homeowners with a recent water damage claim.

Company

Average annual rate

NerdWallet star rating

State Farm

$777

4.0

NerdWallet rating 

North Carolina Farm Bureau

$1,558

Not rated

Lititz Mutual

$1,565

Not rated

Kemper

$1,851

3.0

NerdWallet rating 

Auto-Owners

$2,263

4.0

NerdWallet rating 

The best homeowners insurance in North Carolina for newer homes

Insurance companies often consider newer homes less risky because they’re built with the latest safety codes and their brand-new systems are less likely to fail. That means owners of new houses tend to pay less for homeowners insurance. Below are the companies with the cheapest average rates for a home built in 2021.

Company

Average annual rate

NerdWallet star rating

Kemper

$458

3.0

NerdWallet rating 

Auto-Owners

$642

4.0

NerdWallet rating 

State Farm

$669

4.0

NerdWallet rating 

Universal

$939

4.0

NerdWallet rating 

USAA*

$982

4.5

NerdWallet rating 

*USAA homeowners policies are available only to active military, veterans and their families.

The best homeowners insurance in North Carolina for higher deductibles

Raising your deductible — the amount of a claim you’re responsible for before your insurer starts paying — is one way to lower your insurance premium. Below are the companies that will charge you the least, on average, for a policy with a $2,500 deductible.

Company

Average annual rate

NerdWallet star rating

Nationwide

$926

5.0

NerdWallet rating 

Kemper

$1,199

3.0

NerdWallet rating 

State Farm

$1,216

4.0

NerdWallet rating 

Lititz Mutual

$1,279

Not rated

North Carolina Farm Bureau

$1,311

Not rated

Average homeowners insurance cost in North Carolina by city

Some homeowners in North Carolina will pay more than the state average, while others will pay less, depending on where you live. Here are the average annual costs of homeowners insurance in 20 of the biggest cities in the state.

City

Average annual rate

Average monthly rate

Asheville

$941

$78

Burlington

$1,148

$96

Cary

$1,338

$111

Chapel Hill

$1,180

$98

Charlotte

$1,221

$102

Concord

$1,123

$94

Durham

$1,313

$109

Fayetteville

$1,926

$161

Gastonia

$1,091

$91

Greensboro

$1,143

$95

Greenville

$2,139

$178

Hickory

$968

$81

High Point

$1,144

$95

Jacksonville

$3,067

$256

Lexington

$1,144

$95

Monroe

$1,238

$103

Raleigh

$1,336

$111

Salisbury

$1,154

$96

Wilmington

$4,468

$372

Winston-Salem

$1,118

$93

What to know about North Carolina homeowners insurance

North Carolina is vulnerable to several types of natural disasters. Here’s what you should know to make sure your home is covered.

Hurricanes and tropical storms

North Carolina is one of the U.S. states most frequently hit by hurricanes. These tropical storms can cause both wind and flood damage, and a standard homeowners policy may not cover you completely — or at all.

Flood damage isn’t typically covered by homeowners insurance, so you'll likely need a separate flood insurance policy. This is an especially good idea if you live along the coast or in an area prone to flooding.

Homeowners insurance usually does cover damage caused by wind, but in North Carolina you may pay a separate insurance deductible for any wind or hail damage. Depending on where you live, your insurer may decline to provide wind and hail coverage as part of your homeowners insurance policy. Should that happen, you can purchase separate windstorm insurance from either a private insurer or the North Carolina Insurance Underwriting Association.

Tornadoes

Tornadoes can strike any part of North Carolina but are most common in the eastern part of the state. They often form in conjunction with strong thunderstorms or hurricanes.

In most parts of North Carolina, your homeowners insurance policy will likely cover your home for the wind damage that tornadoes can cause. But if you live near the coast, your homeowners insurer may not cover wind damage due to hurricane risk — and that means you won’t be covered for tornado damage either.

As noted above, separate windstorm insurance is available through private insurers or the North Carolina Insurance Underwriting Association.

Winter storms

North Carolina may not see winters as harsh as those in more northerly states, but it does get some ice and snow. Many types of winter storm damage are covered by a standard homeowners policy. For example, if a pipe freezes and bursts, or a heavy snowfall knocks a tree onto your roof, you’ll usually be covered.

How to get the best home insurance

The best home insurance for you will give you the coverage you need at a price you can afford. Here are a few tips to help you find it.

Estimate your coverage needs. A standard homeowners policy includes the following types of coverage:

Coverage type

What it does

Typical amount

Covers damage to the home and attached structures, such as a porch.

Enough to rebuild your home.

Covers stand-alone structures on your property, such as a fence or shed.

10% of dwelling coverage.

Pays to repair or replace belongings that are stolen or damaged in a covered event.

50% to 70% of dwelling coverage.

Helps pay temporary living expenses while your home is being repaired.

20% of dwelling coverage.

Pays if you injure someone or cause property damage unintentionally or through neglect.

$100,000 to $500,000.

Medical payments

Pays to treat someone injured on your property, regardless of who’s at fault. Also pays if you, a family member or a pet injures someone elsewhere.

$1,000 to $5,000.

To better understand these coverage types and figure out how much you need, see our guide to homeowners insurance coverage.

Shop around. We recommend getting home insurance quotes from at least three different companies. You can do so online or by having an independent insurance agent shop around on your behalf. When evaluating quotes, make sure they all have the same coverage options and deductibles so you know you’re getting a fair comparison.

Read reviews. The cheapest company may not necessarily be the one with the best coverage and customer service. See NerdWallet’s homeowners insurance reviews for our ratings of more than a dozen popular companies.

North Carolina Department of Insurance

Confused about your coverage, or have a complaint about your insurance company? The North Carolina Department of Insurance may be able to help. The agency oversees the insurance industry in North Carolina and provides information and resources to consumers. You can get assistance online or by calling 855-408-1212.

Looking for more insurance in North Carolina?

Frequently asked questions
Is homeowners insurance mandatory in North Carolina?

There’s no law in North Carolina that requires you to buy homeowners insurance. But if you have a mortgage on your home, your lender probably requires at least enough insurance to cover the structure of your home. (This is sometimes called hazard insurance.)

Why is home insurance so expensive in North Carolina?

North Carolina sees more hurricane landfalls than most U.S. states, which means the state’s homeowners — especially along the coast and Outer Banks — tend to pay more for insurance. More generally, the cost of homeowners insurance is going up across the country. A combination of inflation, supply chain issues and natural disasters has made rebuilding more expensive. That increased cost is reflected in higher insurance premiums.

How can I lower my North Carolina homeowners insurance premium?

Make sure you’re getting all the discounts you’re eligible for. You may be able to save by bundling your home and auto policies, installing safety or security features, or strengthening your home against hurricanes. Shop around regularly to see whether less expensive policies are available. We recommend getting home insurance quotes once a year from at least three companies.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across the state. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single water damage claim.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2021.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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