6 Best Homeowners Insurance Companies in North Carolina of 2023
North Carolina is popularly known as the Tar Heel State, and there’s a lot of pride in the state and its sports teams who share that name.
Homeowners in North Carolina in big cities like Raleigh or Charlotte and small towns like Asheboro and Lenoir need homeowners insurance to protect their property in the event it’s damaged or destroyed.
Homeowners insurance isn’t required under North Carolina law, but all mortgage lenders require proof of homeowners insurance coverage before closing on a loan–something that protects their interest in homes that are used as collateral.
On average, homeowners insurance in North Carolina costs $1,800 per year, or $150 per month, a higher cost than the national average due to the risk of severe weather, including hurricanes.
At PropertyNest, we want all North Carolina homeowners to have the insurance they need to protect themselves and their families, so we’ve done the work to choose the 6 best homeowners insurance companies in North Carolina.
Best Homeowners Insurance Companies in North Carolina
- Travelers: Most Affordable Coverage
- State Farm: Best for Inflation Protection
- Allstate: Best for Homes in Flood Areas
- Liberty Mutual: Best for Policy Discounts
- Erie: Best for Add-On Coverage
- North Carolina Farm Bureau: Best for Customer Service
Travelers: Most Affordable Coverage
- Multi-Policy Discount.
- Loss-Free Discount.
- Protective Device Discount.
Travelers Insurance is one of the oldest insurance companies in the United States, having issued its first policy more than 160 years ago.
They’re a well-respected and highly-rated company with strong financial ratings and a long history of solid customer service.
We selected them for our list because of all the insurance companies we considered. Travelers has the most affordable coverage for North Carolina homeowners.
We also like them because they offer a unique discount that allows homeowners to take advantage of green construction to save on their homeowners insurance.
Travelers’ average cost in North Carolina is a low $735 per year, which is significantly lower than the state average.
| J.D. Power (out of 1,000) | 794 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
State Farm: Best for Inflation Protection
State Farm has been selling insurance for a century and is one of the most recognizable and respected insurance companies in the United States.
We selected State Farm for our list because they’re the best choice for homeowners who are concerned about high inflation and what it might do to their ability to rebuild their homes in the event of a total loss.
We also appreciate that State Farm provides excellent customer service and that high policy limits are available for people who own high-value properties in the state.
The average annual premium for State Farm homeowners coverage in North Carolina is $990, which puts it at a little over half of the overall state average.
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Allstate: Best for Homes in Flood Areas
As one of the largest insurance companies in the US, Allstate has plenty of experience assisting homeowners with claims.
We chose them for our list because they work with homeowners to facilitate flood claims, something that’s important for anybody in North Carolina who lives near the water and has purchased flood insurance through FEMA.
We also appreciate Allstate’s user-friendly website that makes it simple to get coverage and file and track claims.
Allstate’s average premium in North Carolina is slightly below the state average, coming in at $1,790. You can save by layering multiple discounts.
Read a full Allstate homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Liberty Mutual: Best for Policy Discounts
Liberty Mutual is a highly respected insurance company with excellent financial ratings and solid customer service.
We selected them for our list because they offer more discounts than any other company we’ve featured, many of which can be layered to maximize your savings.
We also like Liberty Mutual for its user-friendly website, mobile app, and long list of endorsements and add-ons.
Liberty Mutual’s average cost of homeowners insurance in North Carolina is $1,295 per year, 28% below the state average.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Erie: Best for Add-On Coverage
Erie Insurance has been providing coverage since 1925, when it started offering auto insurance to people in Erie, Pennsylvania.
Today, the company offers a variety of insurance coverages, including homeowners insurance, and has expanded to 12 states, including North Carolina.
We chose them for our list because they offer a wide range of add-on coverages, making it easy to customize your policy.
The average annual cost of Erie homeowners insurance in North Carolina is $1,510, about 16% below the statewide average.
| J.D. Power (out of 1,000) | 835 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.65 (Average) |
North Carolina Farm Bureau: Best for Customer Service
North Carolina Farm Bureau Insurance got its start in 1953, offering affordable insurance products to North Carolina farmers.
Since then, it has expanded to offer insurance to all residents of North Carolina and is the second-largest homeowners insurance company in the state.
The company prides itself on its community involvement and provides insurance to North Carolina residents in all 100 counties.
While they don’t offer many discounts, North Carolina Farm Bureau’s average annual cost is very low, coming in at $955 per year, well below the state average.
How Much Homeowners Insurance Do You Need?
One of the questions we get asked most frequently is how much homeowners coverage to buy, and that’s a good question to ask.
We suggest that you calculate how much coverage you need by using the estimated cost to rebuild your home as a guide.
- Dwelling coverage should be high enough to pay for you to rebuild your home from the ground up in the event that it is destroyed.
- Other structures coverage should be enough to pay for you to repair or rebuild any other structures on your property, including sheds, detached garages, fences, or barns; in most cases, your coverage should be 10% of your dwelling coverage.
- Personal property coverage protects your personal belongings and will replace them if they are stolen, damaged or destroyed, and your coverage (not including scheduled valuables) should be 50-70% of your dwelling coverage.
- Personal liability coverage protects you if a guest in your home is hurt or their belongings are damaged, and you’ll need to buy between $100,000 and $500,000 of coverage to be safe.
- Guest medical coverage will reimburse your guests for medical expenses related to an injury sustained in your home, and most policies include $1,000-$5,000 of coverage per guest.
- Additional living expenses coverage will pay for you and the members of your household to live in a hotel or make other arrangements if a covered event causes your home to become uninhabitable.
If you total these numbers, you’ll see that you should buy a policy with a total limit of about twice the cost to rebuild your home, and that number does not include personal liability or guest medical coverage.
Keep in mind that these totals do not take any endorsements, riders, or scheduled valuables that you add to your homeowners policy into account.
What Is and Isn’t Covered by Homeowners Insurance
While homeowners insurance will protect you against many risks associated with owning a home, it doesn’t cover everything.
Here is what you should expect to be covered by your policy.
- Your house and any other structures on your property.
- The personal belongings of everybody who lives in your home, whether those belongings are in your home or not when they are damaged, destroyed, or stolen.
- Damage caused by covered events.
- Your personal liability as it relates to guest injuries or property damage.
- Guest medical expenses.
Here are the most common exclusions in a standard homeowners policy.
- Flood damage
- Earthquake damage
- Pest infestation and damage
- Power failure
- Neglect
- Government action
- Nuclear hazard
You can remedy the first four items on this list by purchasing either an additional policy, as would be the case with earthquake or flood insurance, or by adding an endorsement to your policy to provide additional coverage.
You should know that there is no way to remedy neglect, which is within your control, or the unlikely events of government action or a nuclear hazard.
Synopsis
It’s part of our mission at PropertyNest to provide homeowners in North Carolina with the information and guidance they need to choose a homeowners policy that provides them with affordable and reliable coverage.
As you obtain quotes and compare your options, keep in mind the various factors that affect your costs, including the estimated cost to rebuild your home, the value of your belongings, and the area where your home is located.
We strongly recommend getting at least three quotes from different carriers to compare the cost of insurance and the coverage provided before making a decision about where to buy homeowners insurance.
We also suggest asking about discounts since not every carrier will volunteer information.
Our Methodology
How We Selected the Best Homeowners Insurance Companies for North Carolina
Finding homeowners insurance coverage can be time-consuming and stressful, with many companies to choose from and coverage options that may not match.
We selected the companies on our list using five essential criteria that we believe indicate which companies are the best able to protect North Carolina homeowners.
Premiums
The cost of homeowners insurance is affected by many things but regardless of how much coverage you need, we recognize that keeping costs down is a priority.
For our list, we chose companies that provide good value and affordable costs compared to the North Carolina state average cost and the US national average.
Homeowners Discounts
Homeowners insurance discounts are useful because they can help you reduce your annual premium, particularly if you can layer multiple discounts.
We selected companies that offer two or more homeowners insurance discounts, particularly discounts that apply to most homeowners in North Carolina, such as bundling and installation of safety devices.
Coverage
To be protected, you’ll need to buy enough coverage to rebuild your home and replace your belongings in the event they’re destroyed.
For our list, we prioritized insurance companies that provide excellent standard coverage plus an array of endorsements and add-ons to help you customize your coverage.
Customer Support
Filing an insurance claim can be stressful, and low premiums can’t make up for lack of customer support.
To make our list, insurance carriers needed to have strong customer service ratings and reviews, and we prioritized those companies with multiple avenues of support, including live chat, mobile support, or round-the-clock phone support.
Technology
Technology plays an important role in the process of obtaining quotes for homeowners insurance as well as for paying monthly premiums and filing claims.
We prioritized companies with informative websites, well-received mobile apps, and online support and services.
What Factors Affect the Price of Homeowners Insurance?
You probably know that there are multiple factors that impact how much you’ll pay for homeowners insurance.
Here are the most important things that insurance companies use to determine how much to charge.
Deductibles
Your homeowners insurance policy comes with a deductible and the deductible you choose will affect your costs.
Choosing a low deductible will maximize your protection but result in a higher premium, while a high deductible will lower your monthly premium but cost more when you file a claim.
Policy Limits
We’ll get into more detail about how much coverage to buy below, but as a rule, you’ll need to purchase enough coverage to rebuild your home from the ground up and replace your personal belongings.
If you live in a high-value home, have valuables that you need to schedule, or decide to buy extra liability coverage, you’ll pay more than you would for a basic policy.
Endorsements and Riders
Buying a standard homeowners policy will protect your home and any other structures on your property from damage while adding personal liability coverage and guest medical coverage.
If you choose to customize your policy by adding endorsements and riders, your costs will increase accordingly.
Locations
Homes in some areas cost more to insure than homes in other areas because some locations add to the insurance company’s risk.
If your home is close to a body of water, in an area with high crime rates, or far from a local firehouse, you should expect to pay more.
