A standard homeowners insurance policy includes coverage for dwelling, other structures, personal property, loss of use, liability, and medical payments to others. With a top home insurance company, you’ll have peace of mind that you won’t have to cover the cost of damages on your own. Keep reading to learn our recommendations for the best homeowners insurance policies in North Carolina.
Best Homeowners Insurance Companies in North Carolina
We rated North Carolina insurance providers based on coverage, cost, discounts, endorsements, customer service, and more. Keep reading to learn about the three companies that rated the highest.
An Allstate policy includes dwelling, other structures, personal property, loss of use, personal liability, and medical payments to others coverage. Because Allstate wants each policy to be tailored to the home it’s protecting, the company offers 10 endorsements that range from identity theft restoration and electronic data recovery to water backup and a green improvement reimbursement. Get your free Allstate Quote here.
Other Allstate benefits include:
- 24/7 customer service
- Nine discounts to lower home insurance rates
- Choice of 60% or 75% of dwelling for personal property coverage
Farmers offers the most customizable home insurance policies and allows you to choose up to 200% of dwelling for other structures and personal property coverage, while other insurance companies like Allstate and Liberty Mutual cap it at 70%–75%. You also have the option to choose up to $2 million of liability protection. Like Allstate, Farmers has a variety of endorsement options that include identity shield and eco-rebuild coverage. Get your free Farmers Quote here.
Take a look at Farmers’ other benefits:
- Choice of 10%, 20%, or 30% of dwelling for loss of use coverage
- Deductible split by peril
- Premium won’t increase after a claim if you’ve been claims-free with Farmers for the past five years
3. Liberty Mutual
Liberty Mutual offers 10 discounts that help keep your premium cost low. Common discounts include ones for bundling different types of insurance, being claims-free, and using auto pay. For more comprehensive coverage, consider opting into Liberty Mutual endorsement options like water backup and sump overflow, identity fraud expense, earthquake coverage, and personal property replacement cost. Get your free Liberty Mutual Quote here.
With a Liberty Mutual policy, you’ll receive the following perks:
- Insurance claims center open 24/7
- A company with over 100 years of experience providing insurance products and services
- Up to $1 million in liability coverage
North Carolina Homeowners Insurance Coverage
North Carolina policies typically include six areas of coverage:
- Dwelling—This type of coverage protects the parts of your home that are built-in like the cabinetry, HVAC system, and foundation, and will pay to rebuild your home if an event destroys it.
- Other structures—This covers detached structures on your property, like detached garages, sheds, and fences. Similar to dwelling coverage, it will rebuild these structures if an event destroys them. A typical amount of other structures coverage is 10% of dwelling coverage.
- Personal property—This part of your policy protects your personal belongings if they’re damaged or destroyed. This coverage is typically 50% of dwelling coverage.
- Loss of use—If an event damages your home and you have to leave it temporarily for repairs, your provider will cover living expenses during that time. This is usually 20% of dwelling coverage.
- Liability—Liability protection covers medical bills, legal fees, and repairs or replacements when you’re responsible for injuring someone or damaging their belongings. Most insurance companies recommend getting $300,000 worth of this coverage.
- Medical payments to others—When a guest is injured in your home, your policy will pay a certain amount of their medical bills. A standard amount is $1,000 per person.
How Much Does NC Homeowners Insurance Cost?
According to the Insurance Information Institute, the average cost of a homeowners insurance policy in 2017 was about $101 per month. Insurance rates in North Carolina were more affordable than the industry average and cost around $90.50 per month.
Factors to Consider Before Buying Homeowners Insurance
Consider how these factors will affect your insurance premium:
- Natural disasters—North Carolina is susceptible to flooding, tornadoes, and hurricanes. While most insurance companies don’t protect against natural disasters, you can usually buy an endorsement to protect against them. Liberty Mutual has a hurricane endorsement and Amica®, another national insurance company, has a catastrophic coverages endorsement for natural disasters. If you live along the coast, you may have to buy a separate flood insurance policy to protect your home against hurricane damage.
- Cost to rebuild your home—The rebuilding cost of your home determines dwelling, other structures, personal property, and loss of use coverage. The best way to estimate this cost is to talk to a local appraiser who is familiar with the housing market and how much it costs to build a home. You can also purchase $100 to $155 of protection per square foot or use the estimation given to you by your insurance company.
- Inspection—If your home is older, an insurance company will likely require a home inspection to assess how likely it is that damage will occur before providing you with a quote. Most companies perform a 4-Point Inspection, which looks at the roof, plumbing, electrical, and HVAC.
Discounts—The best way to save on an insurance policy is to look for a company that offers a variety of discounts. Both Liberty Mutual and Allstate offer over five discounts.
Compare Homeowners Insurance Coverage Options
|Other structures coverage limits||10% of dwelling||5%–200% of dwelling||10% of dwelling|
|Personal property coverage limits||60% or 75% of dwelling||40%–200% of dwelling||70% of dwelling|
|Liability coverage limits||$100,000, $200,000, $300,000, or $500,000||$100,000, $300,000, $500,000, $1 million, or $2 million||$100,000, $200,000, $300,000, $500,000, or $1 million|
|Unique add-ons||Musical instruments, yard and garden||Building ordinance or law, marring to metal roof materials||Water backup and sump overflow, hurricane|
|Customer service||24/7||24/7 for claims; limited for sales and service||24/7 for claims; limited for sales and service|
*Based on sample quotes our team received
FAQs About Homeowners Insurance in North Carolina
What does homeowners insurance not cover?
Most homeowners insurance policies will not cover the following events:
- Natural disasters
- Nuclear hazard
- Ordinance or law
- Governmental action
- Intentional acts
What is the National Flood Insurance Program?
The National Flood Insurance Program (NFIP) is a program run by FEMA. Though NFIP manages all flood insurance policies provided by insurance companies, you can’t buy flood insurance through NFIP. Instead, you have to talk directly to an insurance company that’s a part of the program to purchase a policy.
Why should I bundle home and auto insurance?
There are two benefits to bundling insurance policies: receiving a discount and working with a trusted provider.
- Discount—Most insurance companies will offer a discount of 20%–30% for bundling insurance policies.
Trusted provider—If you have auto insurance and are looking to buy a home insurance policy, purchasing a plan through your auto insurance provider allows you to work with a company that you’re familiar with.
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