Best, Cheapest Home Insurance Companies in North Carolina
Farm Bureau has the cheapest average home insurance rates in North Carolina, $113 a month. That's 28% lower than the average rate statewide of $156 a month.
Learn how to find the best, cheapest home insurance in North Carolina:
Cheapest homeowners insurance companies in North Carolina
Of the six top home insurance companies in North Carolina, Farm Bureau has the cheapest home insurance in North Carolina at $113 a month. Travelers is close behind at $116 a month. USAA has the highest average rate, $194 a month.
Best home insurance companies in North Carolina
We looked at the six most popular home insurance companies in North Carolina and compared their average rates, offerings and customer satisfaction trends.
Every year, J.D. Power publishes a customer satisfaction study that reflects how well home insurance providers handle claims settlements, servicing and repairs. Additionally, the National Association of Insurance Commissioners, or NAIC, records trends of low payouts and denials on home insurance claims among insurers. The table below shows the current J.D. Power claims satisfaction and NAIC Complaint Index rankings of the biggest home insurance companies in North Carolina:
| Company | J.D. Power 2021 property claims satisfaction | NAIC Complaint Index |
|---|---|---|
| Allstate | 882 | 0.8 |
| Farm Bureau | NA | 0.1 |
| Nationwide | 892 | 0.2 |
| Travelers | 881 | 0.3 |
| State Farm | 880 | 3.4 |
| USAA | 905 | 0.8 |
| Source: J.D. Power 2021 U.S. Property Claims Satisfaction Study, based on a 1,000-point scale, with an industry average of 883. NAIC Complaint Index, with a national average Complaint Index of 1.0. | ||
We dug deep into the North Carolina home insurance companies that rose to the top in terms of cheapest rates and best customer satisfaction. Here's what we found:
Farm Bureau: cheapest home insurance rates
Farm Bureau has the cheapest home insurance in North Carolina, $113 a month. That's 28% lower than the state average of $156 a month. The table below shows Farm Bureau's average home insurance rates in North Carolina's 10 most populated cities:
| City | Average monthly rate |
|---|---|
| Charlotte | $85 |
| Greensboro | $87 |
| Winston-Salem | $87 |
| High Point | $87 |
| Concord | $89 |
| Durham | $95 |
| Cary | $97 |
| Raleigh | $97 |
| Fayetteville | $138 |
| Wilmington | $319 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Also, Farm Bureau has the lowest NAIC Complaint Index, 0.1, indicating strong customer care.
Travelers: second-cheapest home insurance
Travelers has the second-lowest average homeowners insurance rates in North Carolina, $116 a month. That's 26% below the state average. The table below shows Travelers' average rates in the 10 biggest cities in North Carolina:
| City | Monthly rate |
|---|---|
| Concord | $82 |
| Charlotte | $86 |
| Greensboro | $86 |
| High Point | $86 |
| Winston-Salem | $86 |
| Cary | $87 |
| Durham | $87 |
| Raleigh | $87 |
| Fayetteville | $137 |
| Wilmington | $305 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
With 908 agencies in North Carolina, it can be easy to find a Travelers agent near you. Travelers also maintains a low NAIC Complaint Index of 0.3.
State Farm: most popular home insurance company in North Carolina
State Farm holds 16.9% of the state's market share, with Farm Bureau coming in second, with 12.2%. It's the most popular home insurance company in NC.
State Farm has an average home insurance rate of $186 a month, which is higher than the state average of $156 a month. Even though it's pricier, State Farm remains the heavy hitter in North Carolina. That's largely because the company prides itself on making connecting with them easy, whether you want a local agent close to home or quick access online.
Nationwide: best customer satisfaction combined with rates
Nationwide has the highest property claims satisfaction rating among all North Carolina home insurers, with 892 out of 1,000 from J.D. Power. While USAA has a higher rating from J.D. Power of 905, it only provides insurance to current and retired members of the Armed Forces and their families.
Nationwide is also notable for its low home insurance rates. While the company doesn't offer the lowest average rate in North Carolina, at $136 a month, it still comes in well below the state average.
How much is homeowners insurance in North Carolina?
The average cost of homeowners insurance in North Carolina is $1,869 a year, or $156 a month. That's 7% higher than the national average home insurance rate of $1,735, or $144 a month.
| Region | Average annual rate | Average monthly rate |
|---|---|---|
| North Carolina | $1,869 | $156 |
| U.S. | $1,735 | $144 |
| 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 $111 a month. Wilmington is the most expensive city for home insurance, at $423 a month.
Wilmington's high home insurance rates are largely due to rising median home costs in the city and the high risk of severe windstorms on the North Carolina coast. In 2020, median home prices in Wilmington rose from $256,000 in 2019 to $285,000, an 11% increase. Furthermore, Wilmington is the number-four city most hit by tropical storms and hurricanes in the world. These factors may significantly increase home insurance rates.
| City | Average monthly rate |
|---|---|
| Concord | $111 |
| Greensboro | $115 |
| Winston-Salem | $115 |
| High Point | $116 |
| Charlotte | $118 |
| Durham | $127 |
| Cary | $127 |
| Raleigh | $128 |
| Fayetteville | $166 |
| Wilmington | $423 |
| 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 heavy wind and flooding. Home insurance companies consider the damage such weather can cause when they calculate home insurance rates.
Tornadoes
North Carolina experiences an average 31 tornadoes a year. This puts the state at a 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 coastal areas in the state. You're required to get wind and hail coverage separately.
Many home insurance providers sell wind and hail insurance, but if you can't find an affordable policy, you should look into the Fair Access to Insurance Requirements (FAIR) plan and the Coastal Property Insurance Pool (CPIP).
Flooding
Of the 11 counties most likely to experience flooding, two of them are in North Carolina. 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 $733 a year, or $61 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 from the following providers:
- Allstate
- Farm Bureau
- Nationwide
- Travelers
- State Farm
- USAA
Our sample home used to generate quotes was built in 2000 and used the following coverage limits:
- Dwelling coverage: $275,000
- Personal property coverage: 50% of dwelling ($137,500)
- Other structures coverage: 10% of dwelling ($27,500)
- Loss of use coverage: 20% of dwelling ($55,000)
- Liability coverage: $100,000
- Deductible: $1,000
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