North Carolina Home Insurance: Costs, Coverage and How to Save

🌀 Hurricanes and tropical storms

North Carolina’s coastline is directly in the path of Atlantic hurricanes and tropical storms. Homes in the Outer Banks, Wilmington, and other coastal areas face the highest risk, but Helene proved that even inland communities in western North Carolina are vulnerable to catastrophic storm damage.

💨 Coastal windstorm and hail exclusions

In many of North Carolina’s 18 coastal counties, standard homeowners policies may exclude wind and hail coverage entirely. If your policy carries this exclusion, you’ll need a separate windstorm and hail policy, often through the state’s Coastal Property Insurance Pool, run by the North Carolina Insurance Underwriting Association. This separate policy comes with its own deductible and premium, which can add significantly to your total insurance cost.

🌊 Named storm deductibles

Even if your homeowners policy includes wind coverage, it may have a separate named storm deductible that is percentage-based rather than a flat dollar amount. For example, a 2% named storm deductible on a home insured for $300,000 means you’d pay $6,000 out of pocket before coverage kicks in during a hurricane. Understanding your named storm deductible is important for homeowners anywhere near the coast.

🌧️ Flooding and inland water damage

Standard homeowners policies in North Carolina do not cover flood or rising water damage. This is a major gap for homeowners statewide, not just on the coast. Hurricane Helene’s catastrophic flooding in Asheville and surrounding mountain communities showed that flood risk extends far beyond traditional floodplains. Separate flood insurance through the National Flood Insurance Program or a private carrier is the only way to close this gap.

⛈️ Severe thunderstorms and tornadoes

North Carolina averages 7.4 billion-dollar weather events per year over the last five years, many of them severe thunderstorm events. Tornadoes, hail, and straight-line winds can strike anywhere in the state, from the Piedmont through the Sandhills. Insurers factor local storm frequency into your premium, and homes in areas with repeated claims may face higher rates.

📈 Rising rates across the state

The NC Rate Bureau originally requested a 42.2% average homeowners rate increase in 2024, with proposed increases of up to 99.4% in some coastal areas. The NC Department of Insurance negotiated that down to two 7.5% increases, one effective June 1, 2025, and another on June 1, 2026. But even with these reduced increases, North Carolina homeowners should expect higher premiums in the coming years, making it more important than ever to compare quotes.

💨 Wind mitigation discount

In North Carolina’s 18 coastal counties, wind mitigation upgrades like hip roofs, storm shutters, and reinforced roof-to-wall connections can earn significant savings credits. A total hip roof and opening protections can save 8% to 10% on wind and hail premiums near the coast, and having your home designated as IBHS FORTIFIED could provide even larger discounts.

🔒 Security system discount

Installing safety devices like alarms, smart home systems, and deadbolts can qualify you for a lower rate. Many carriers offer protective device discounts of up to 15% when you combine security systems like advanced burglar protection and automatic water leak valves.

🆕 New home discount

Newer homes are less likely to have costly claims, and insurers reward that. Depending on the carrier, homes built within the last 10 to 15 years may qualify for savings of up to 15% for the first year you’re with an insurance company.

🎓 Claims-free discount

The longer you go without filing a claim, the more you save. Most insurers offer this discount after three or more claims-free years, with some offering savings of up to 20%.

🎓 Claims-free discount

The longer you go without filing a claim, the more you save. Most insurers offer this discount after three or more claims-free years, with some offering savings of up to 20%.

🔧 Home renovation discount

Updated your electrical, plumbing, or heating systems? Some carriers offer discounts when these systems have been replaced within the last 10 to 15 years, since modern systems reduce the risk of fire and water damage. In North Carolina, a new roof is especially impactful given the state’s exposure to wind and hail.

🏡 HOA or gated community discount

If your home is in a homeowners association or gated community, you may qualify for a lower premium. Insurers view these properties as lower risk due to added security and regular maintenance.

💳 Pay-in-full discount

Paying your full annual premium upfront instead of in monthly installments can earn you a discount with many carriers, typically between 5-10%.

📋 Quote-in-advance discount

Shopping early can pay off. Some insurers offer a discount of up to 15% when you get a quote before your previous policy expires.

🚭 Non-smoker discount

Since smoking increases the risk of house fires, some carriers offer lower rates to non-smoking households.