Best homeowners insurance companies in North Carolina
Finding the right homeowners insurance company can save you money and give you peace of mind when disaster strikes. We ranked the top home insurance companies in North Carolina based on their average rates, coverage, customer service and availability to make your decision easier. These four companies stood out to us as great options:
- Best overall: Erie Insurance
- Cheapest rates: North Carolina Farm Bureau
- Best bundle: State Farm
- Best for service members and their families: USAA
Erie Insurance: Best overall home insurer
Erie is our pick for the best overall homeowners insurance company in North Carolina due to its affordable rates, excellent customer service and coverage. We found that Erie's average home insurance rate is $1,031 a year, which is $18 below the state average.
Erie was one of only three companies to receive the maximum 5/5 in overall satisfaction from J.D. Power's home insurance survey. That indicates that Erie's customer experience is one of the best in the country and customers can expect above-average service. Affordable rates and great customer satisfaction won't come at the cost of full coverage — Erie provides the industry standard homeowners insurance, including coverage for:
- Your home, garage and other buildings on your property.
- Your personal belongings.
- Loss of use, in case you are unable to remain in your home.
- Personal liability and medical payments to others.
North Carolina Farm Bureau: Best for cheap rates
Our study found that North Carolina Farm Bureau offered the cheapest rates in the state, at an average of $853 a year or about 18% below the North Carolina average. In addition to cheap rates, North Carolina Farm Bureau has close ties to communities in North Carolina and a history of serving its residents.
North Carolina Farm Bureau requires a $25 annual membership fee, which increases its annual cost slightly, but we think that's a small price to pay for access to its insurance and banking products. Members can also enjoy discounts on maintenance and home services and Choice hotels, making it a great option for people looking to save money.
Like all companies, North Carolina Farm Bureau's average rates vary across the state. Here are average rates for some of North Carolina's largest cities:
State Farm: Best for bundling home and auto
Bundling your homeowners and auto insurance with the same company is a great way to save on your insurance rates and manage all your coverages through one company. If you're looking to bundle, we recommend State Farm, thanks to its great customer satisfaction ratings for homeowners and auto insurance and bundling savings.
If you purchase your home and auto insurance from the same company, you should make sure both services are up to your standards. We like State Farm because it received a 4/5 in overall satisfaction from J.D. Power's home and auto insurance surveys — a strong showing for both types of insurance. Additionally, State Farm advertises average savings of $854 a year for customers who switched and bundled.
USAA: Best for veterans
USAA insurance is only available to military members, veterans and their families. If you belong to one of these groups, USAA is one of your best options for homeowners insurance thanks to its fair rates, best-in-class customer service and coverage. With an average rate of $917 a year, which is 13% below the state average, USAA has some of the cheapest rates around.
You won't have to sacrifice customer satisfaction or coverage for USAA's cheap rates: USAA was the only company to receive the maximum 5/5 for every category in J.D. Power's home insurance survey. USAA's standard homeowners insurance policies go the extra mile, too. USAA covers active duty service members' uniforms and provides $5,000 of identity coverage in its standard policies, which is coverage we rarely see.
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Homeowners insurance companies in North Carolina
Knowing all of your options can help you find the best homeowners insurance company for you. The table below shows the most popular home insurers in North Carolina, so there's a good chance you'll find a local option on the list.
| Company | Market share | Overall satisfaction rating* (higher is better) | 2018 NAIC Complaint Index (lower is better) |
|---|---|---|---|
| State Farm | 18% | 4/5 | 0.20 |
| North Carolina Farm Bureau | 12% | – | 0.34 |
| Nationwide | 10% | 2/5 | 0.24 |
| USAA | 8% | 5/5 | 0.15 |
| Allstate | 7% | 3/5 | 0.38 |
| Erie Insurance | 6% | 5/5 | 0.16 |
| Liberty Mutual | 4% | 2/5 | 0.40 |
| Auto-Owners Insurance | 3% | 4/5 | 0.10 |
| *According to J.D. Power's 2019 home insurance survey | |||
State Farm is the most dominant company in North Carolina (and the entire U.S.), but North Carolina Farm Bureau is a strong local player.
Cost of homeowners insurance in North Carolina
The average cost of homeowners insurance in North Carolina is $1,049 a year, according to our study of almost 2,000 quotes. That's below the national average of $1,215 by 14%, meaning North Carolinians enjoy savings of $168 a year compared to other Americans.
| North Carolina | U.S. | |
|---|---|---|
| Average yearly rate | $1,049 | $1,215 |
| Average monthly rate | $87 | $101 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
When it comes to finding the cheapest rates, choosing the right company is important. We saw rates ranging from $853 to over $1,500. Erie, Nationwide and State Farm hover around the North Carolina average of $1,049, while North Carolina Farm Bureau and Liberty Mutual come in with most affordable rates in the state.
Here are the average rates our study found for some of the top homeowners insurance companies in North Carolina.
Our study should help you estimate average rates, but the only way to know you're getting the cheapest rates you can is to compare quotes from multiple insurance companies.
Homeowners insurance rates in North Carolina by city
Homeowners insurance rates tend to be more expensive in North Carolina's eastern areas, which have more exposure to hurricanes and storms off the Atlantic Ocean. For example, the coastal county of Carteret has the highest insurance rates in the state, at an average of $3,122 a year, followed closely by New Hanover.
Charlotte and Raleigh, the two largest cities in North Carolina, enjoy below-average rates because they are further inland. The average rate in Charlotte is 23% below the state average, at $806 a year, and Raleigh has similar rates — $824 a year on average.
But there are also substantial coastal populations in North Carolina that see significantly higher rates. Wilmington, for example, sees rates more than twice the state average, at $2,870 a year. Here are average rates for some of the biggest cities in North Carolina:
| City | Average yearly rate | Difference from N.C. average ($1,049) |
|---|---|---|
| Asheville | $699 | -33% |
| Cary | $826 | -21% |
| Charlotte | $806 | -23% |
| Concord | $802 | -24% |
| Durham | $818 | -22% |
| Fayetteville | $1,110 | 6% |
| Greensboro | $754 | -28% |
| Greenville | $1,153 | 10% |
| High Point | $773 | -26% |
| Raleigh | $824 | -21% |
| Wilmington | $2,870 | 174% |
| Winston-Salem | $749 | -29% |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Wind and hail insurance in North Carolina
A standard HO-3 homeowners insurance policy includes coverage for windstorm and hail damage, however some companies exclude this protection in coastal and high-risk areas. In these instances, it's important to find wind and hail insurance elsewhere to make sure that your home is completely protected.
There are two primary options in North Carolina for people who cannot get homeowners insurance coverage through traditional channels: the Fair Access to Insurance Requirements (FAIR) plan and the Coastal Property Insurance Pool (CPIP).
North Carolina Joint Underwriting Association (NCJUA or FAIR plan)
The NC Joint Underwriting Association administers the FAIR plan and offers standard coverage everywhere outside of beach and coastal areas. FAIR plan homeowners insurance policies provide the same coverage as a regular insurance policy, with a handful of limitations.
FAIR plan insurance policies are intended as a last resort, and NCJUA often requires you to have tried and failed to get coverage through the standard channels. If you're having trouble getting coverage, we recommend working with your insurance agent to find coverage through NCJUA.
North Carolina Insurance Underwriting Association (NCIUA or CPIP)
The NC Insurance Underwriting Association administers the Coastal Property Insurance Pool and is similar to the NCJUA, except in two primary ways:
- NCIUA provides coverage in coastal and beach areas, NCJUA does not.
- NCIUA provides wind and hail only policies, NCJUA does not.
Wind and hail only insurance policies through NCIUA are available to people who have an additional insurance policy that excludes windstorm coverage.
Flood insurance in North Carolina
Homeowners insurance almost never covers flooding, meaning you'll have to get a separate flood insurance policy for coverage. Most people find flood insurance through the National Flood Insurance Program (NFIP), which costs an average of $751 a year, or $62 a month in North Carolina.
North Carolina has experienced some of the most severe flooding of any state: Between 1996 and 2016, North Carolinians closed 46,000 NFIP claims, receiving more than $800 million in relief. That’s the 7th highest amount of any state. While there are no regions in the U.S. completely safe from flooding, North Carolina is especially susceptible.
Additionally, new research by First Street Foundation suggests that North Carolina’s flood risk is greater than previously thought. First Street Foundation’s new analysis found 3.6 times more properties at risk of flooding than FEMA’s, or an additional 262,024 properties.
First Street's new calculation takes the rise in sea levels, creek floods and additional rainfall into account. Below is a comparison between FEMA’s and First Street’s estimates of the properties at risk of flooding in North Carolina.
| Most populated counties | Total properties | FEMA total properties at risk | First Street total properties at risk | First Streat additional properties at risk compared to FEMA | Magnitude difference |
|---|---|---|---|---|---|
| North Carolina | 5,370,038 | 276,897 | 538,921 | 262,024 | 1.95x |
| Wake County | 378,725 | 4,470 | 17,358 | 12,888 | 3.88x |
| Mecklenburg County | 347,212 | 4,157 | 19,106 | 14,949 | 4.60x |
| Guilford County | 198,947 | 2,803 | 8,555 | 5,752 | 3.05x |
| Forsyth County | 158,929 | 1,942 | 7,462 | 5,520 | 3.84x |
| Cumberland County | 135,260 | 2,594 | 10,445 | 7,851 | 4.03x |
| Durham County | 115,108 | 2,646 | 6,198 | 3,552 | 2.34x |
| Buncombe County | 121,633 | 2,501 | 16,306 | 13,805 | 6.52x |
| Union County | 102,400 | 1,186 | 5,216 | 4,030 | 4.40x |
| New Hanover County | 93,886 | 12,376 | 22,875 | 10,499 | 1.85x |
| Gaston County | 105,250 | 1,838 | 6,775 | 4,937 | 3.69x |
Methodology
We considered the top 20 home insurance companies in North Carolina in making our picks for the best in the state. We ranked companies based on their availability, coverage, affordability and customer satisfaction scores.
Our study aggregated 1,987 quotes from every ZIP code in North Carolina to find the average homeowners insurance rate in the state. We included the following companies in our analysis: Allstate, Erie, Liberty Mutual, MetLife, Nationwide, North Carolina Farm Bureau, State Farm and USAA. The sample quotes we analyzed were based on the median home value and build year of a single-family home in North Carolina. The policy specifications were as follows:
- Dwelling coverage: $192,384
- Personal property coverage: 50% of dwelling ($96,192)
- Other structures coverage: 10% of dwelling ($19,238)
- Loss of use coverage: 20% of dwelling ($38,477)
- Liability coverage: $100,000
- Deductible: $1,000
- Build year: 1985
Lastly, demographic, geographic and market data was sourced from S&P Global.
Frequently asked questions
Q: What’s the best homeowners insurance company?
A: Our top pick is Erie Insurance, but there are other great choices in North Carolina, too. Check out our study of homeowners insurance in North Carolina to explore all of your options.
Q: What’s the average cost of homeowners insurance?
A: Homeowners insurance in North Carolina costs $1,049 a year on average, but rates vary between companies.
Q: Does homeowners insurance cover flood damage?
A: Usually, no. In order to have protection against flood damage, you'll have to purchase a flood insurance policy separate from your homeowners insurance.
Q: How can I get wind and hail insurance?
A: Many homeowners insurance policies cover windstorms and hail. However, if your home insurance company excludes those coverages, you can get coverage through the FAIR plan or Coastal Property Insurance Pool.
Sources:
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