To help you get the best rate and the right coverage, we studied the home insurance market in North Carolina by comparing rates, policy offerings and customer satisfaction levels. Here's what we found:
In this article
Cheapest homeowners insurance companies in North Carolina
Of the top five home insurance companies in North Carolina, State Farm has the cheapest rate - $1,148 a year.
| Company | Average annual premium |
|---|---|
| Allstate | $2,400 |
| Nationwide | $2,412 |
| North Carolina Farm Bureau Insurance | $1,496 |
| Travelers | $1,558 |
| State Farm | $1,148 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Best home insurance companies in North Carolina
We looked at the five most popular home insurance companies in North Carolina and compared their average rates, offerings and customer satisfaction trends. State Farm and Nationwide stand out for their strong customer service ratings and competitive rates and discounts.
The table below shows some of the largest homeowners insurance companies in the state and their customer satisfaction ratings.
| Company | J.D. Power overall customer satisfaction* (higher is better) | NAIC Complaint Index (lower is better)** |
|---|---|---|
| Allstate | 829 | 1.12 |
| Nationwide | 812 | 0.49 |
| North Carolina Farm Bureau Insurance | - | 0.21 |
| Travelers | 800 | 0.61 |
| State Farm | 835 | 1.01 |
| Note: Complaint Index is based on 2021 data from the National Association of Insurance Commissioners. J.D. Power ratings from 2021 U.S. Home Insurance Study. | ||
State Farm: best overall
State Farm has the cheapest home insurance in North Carolina, $1,148 a year. That's 36% lower than the state average of $1,803 a year. The table below shows State Farm's average home insurance rates in North Carolina's 10 most populous cities:
| City | Average annual premium |
|---|---|
| Charlotte | $696 |
| Raleigh | $503 |
| Greensboro | $474 |
| Durham | $584 |
| Winston-Salem | $455 |
| Fayetteville | $836 |
| Cary | $503 |
| Wilmington | $6,517 |
| High Point | $486 |
| Concord | $368 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Along with cheap rates, State Farm also has a high customer satisfaction rating, earning a score of 835 out of 1,000 in J.D. Power's 2021 U.S. Home Insurance Study.
Like most insurance companies, State Farm offers discounts for bundling policies. State Farm says bundling homeowners and auto insurance can save up to $1,127 a year.
Nationwide: best discounts
Nationwide home insurance costs an average $2,412 a year in North Carolina. Although that's higher than the state average, Nationwide offers a variety of discounts to reduce your premium even further, such as:
- Bundle discount: Bundling auto and homeowners insurance can save you money.
- Protective device: If your home has smoke detectors, fire alarms or burglar alarms, you could see a lower rate.
- Claims-free: If you don't have any claims, you could get a lower premium.
- Home purchase: You're eligible for a discount if you bought a home in the last 12 months.
These are just a few of the discounts you may qualify for with Nationwide. Talk to a Nationwide agent to find out about all of the discounts you could receive.
Find cheap home insurance in North Carolina
What is the average cost of homeowners insurance in North Carolina?
The average cost of home insurance in North Carolina is $1,803 a year, $49 per year more than the national average of $1,754. We calculated this rate from nearly 10,000 quotes gathered from five of the top homeowners insurance companies operating in North Carolina.
| Rate | North Carolina | U.S. |
|---|---|---|
| Average annual rate | $1,803 | $1,754 |
| Average monthly rate | $150 | $146 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
You can customize your home insurance policy by lowering or increasing your deductible amount. If you raise your deductible from $500 to $2,000, your annual premium may drop by 26%, on average.
| Deductible | Average annual premium |
|---|---|
| $500 | $2,022 |
| $1,000 | $1,803 |
| $1,500 | $1,638 |
| $2,000 | $1,506 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
You can also customize your policy by choosing the amount of coverage you have. We gathered quotes for five different dwelling coverage amounts ranging from $200,000 to $500,000. The dwelling coverage section of a homeowners insurance policy helps to rebuild or repair the structure of your home after a covered incident.
| Dwelling coverage | Average annual premium |
|---|---|
| $200,000 | $1,388 |
| $275,000 | $1,803 |
| $350,000 | $2,125 |
| $425,000 | $2,472 |
| $500,000 | $2,821 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in North Carolina by city
We looked at average homeowners rates in the 10 largest cities in North Carolina and found Concord to have the lowest average premium of $1,114 a year. Wilmington is the most expensive city for home insurance, at $6,163 a year.
| City | Average annual premium |
|---|---|
| Charlotte | $1,236 |
| Raleigh | $1,278 |
| Greensboro | $1,156 |
| Durham | $1,298 |
| Winston-Salem | $1,127 |
| Fayetteville | $1,859 |
| Cary | $1,284 |
| Wilmington | $6,163 |
| High Point | $1,170 |
| Concord | $1,114 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Why is home insurance in North Carolina so expensive?
Located on the East Coast, North Carolina frequently experiences hurricanes, heavy wind and flooding. Home insurance companies consider the damage such weather can cause when they calculate rates.
Tornadoes
North Carolina experiences an average 31 tornadoes a year, according to the National Weather Service. This puts the state at high risk for extensive damage, and home insurers know it. Also, windstorm and hail damage are not covered by home insurance policies in some parts of North Carolina. This is usually the case in the state's coastal areas. You would have to buy wind and hail coverage separately to be fully protected.
Many home insurance providers sell wind and hail insurance, but if you can't find an affordable policy, you should look into the Coastal Property Insurance Pool (CPIP). This so-called "market of last resort" offers windstorm and hail coverage to homeowners in 18 coastal North Carolina counties.
Flooding
North Carolina has the 10th most losses related to floods, according to FEMA. This marks the state as a particularly high risk for flood damage. Standard home insurance does not cover flooding, and while there is no North Carolina state law requiring flood insurance, your lender may require it if you have a mortgage.
On average, flood insurance in North Carolina costs $752 a year, or $63 a month. You can purchase flood insurance through insurance agents who take part in FEMA's National Flood Insurance Program (NFIP), as well as some independent insurance providers.
Methodology
We used Quadrant Information Services to generate thousands of home insurance quotes from every ZIP code in North Carolina. Our sample home used the following coverage limits:
- Dwelling coverage: $275,000 (unless otherwise noted)
- Personal property coverage: $137,500
- Other structures coverage: $27,500
- Loss of use coverage: $55,000
- Liability coverage: $100,000
- Deductible: $1,000 (unless otherwise noted)
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