North Carolina Homeowners Insurance Coverage

Is homeowners insurance required in North Carolina?

North Carolina doesn’t require homeowners insurance. However, if you have a mortgage, your lender will likely require home insurance to protect their financial interest in your home. Even if coverage is not mandatory, homeowners insurance can help cover your losses from theft, vandalism, lightning strikes, fires and other covered events included in your policy. Without home insurance you will have to bear the cost of repairing or rebuilding your home or replacing damaged or stolen property.

What does homeowners insurance cover in North Carolina?

Homeowners insurance provides coverage for your house and belongings if they are damaged by a covered event, such as a fire or vandalism. It can also cover medical or legal expenses you must pay if someone else is hurt or their property damaged because of you — a tree in your yard falls on your neighbor’s car, for instance — or if a liability claim is brought against you.

Some policies may exclude certain kinds of damage, though, including flooding, which requires a separate policy. Policies in storm-prone coastal areas may exclude high winds and hail, too (see question below on coverage of hurricanes). A Farmers® representative can help by discussing options so you can get the coverage you want for your home and location.

Are hurricanes and tropical storms covered by homeowners insurance in North Carolina?

Because of the high risk of hurricanes and tropical storms along North Carolina’s coast, in some cases, your home insurance policy won’t cover damage caused by either unless wind coverage is added (if available in your area). You may need to purchase a combination of coverages — flood, hail and wind, for example — to ensure you have the coverage you want for a loss from a tropical storm. Talk to your Farmers representative about options for obtaining coverage for these risks. If your home insurance policy does provide coverage for hurricane damage, a specific, named deductible may apply to losses following a severe storm. If a named tropical storm damages your home, you must pay the hurricane deductible before insurance kicks in. Typically, it’s a percentage of the insured value of your home, usually between 1 and 5 percent. Planning your hurricane coverage can be complicated; a Farmers representative can walk you through your options.

How much is homeowners insurance in North Carolina?

The average premium for home insurance coverage in North Carolina is $1,621 per year¹, according to 2022 data (the most recent available) from the National Association of Insurance Commissioners (NAIC). That’s more than what homeowners nationwide paid — an average of $1,569 per year for coverage, the NAIC report shows. Keep in mind that insurance premiums in most states have changed since then. Also, the amount you pay may be different depending on things like the value and age of your home, how much personal property you want to cover, what deductible you choose and risks specific to your area.