North Carolina homeowners currently enjoy premiums under the national average, but weather is always a concern. Flooding, tornadoes, and hurricanes are all possibilities in this state. This requires thorough insurance that fits your budget.
We chose Erie Insurance as our top homeowners insurance in North Carolina due to its expanded coverage and affordability. The company also has strong financial and customer satisfaction ratings, making it a dependable choice as well.
To establish our top carriers, we looked at average annual premiums along with coverage policies. We evaluated this information along with J.D. Power, AM Best, S&P, Moody’s, and BBB ratings.
The 5 Best Homeowners Insurance Companies in North Carolina
| Erie Insurance | Travelers | USAA | Nationwide | State Farm | |
| Our review | Our review | Our review | Our review | ||
| AM Best Financial Strength Rating | A+ | A++ | A++ | A+ | A++ |
| J.D. Power 2019 Overall Customer Satisfaction Score | 838/1000 | 796/1000 | 878/1000 | 796/1000 | 831/1000 |
| Online Quote Tool | X | ✓ | ✓ | ✓ | ✓ |
Average Cost of Homeowners Insurance in North Carolina
The average cost of homeowners insurance in North Carolina is $1,037, which is nearly $175 less than the national average of $1,211. Several factors can affect the rate of your homeowners insurance, such as your home’s age, size, and location. Your address is especially important in North Carolina due to issues like flooding, but this also concerns crime rates and access to resources, which may impact your premiums.
Home Insurance Add-Ons That Will Further Protect You
North Carolina doesn’t require homeowners insurance, but your lender most likely does as a condition of the mortgage loan. One valuable insurance add-on for North Carolina homeowners is flood coverage. If you live near a river, near the coast, or on a flood plain, it’s essential to consider purchasing flood coverage for your home.
Helpful Resources for North Carolina Homeowners
One of the resources available for North Carolina residents is a comprehensive guide to homeowners insurance published by the state’s Department of Insurance. It walks readers through basic coverage, additional optional coverage, tips, loss prevention, and other information homeowners can use when evaluating home insurance providers.
North Carolina’s Department of Insurance website is an excellent resource with more bite-sized articles detailing insurance basics, consumer tips, questions to ask your agent, and much more.
Methodology
To determine which were the best homeowners insurance companies in North Carolina, we started with the largest companies. We took stock of their financial and customer satisfaction ratings from AM Best, Moody’s, S&P, and J.D. Power. We also examined their average annual premiums to find companies that can provide affordable and quality coverage.
We worked with Quadrant Information Services to provide data on home the insurance rates considering company, state, and age of the home. Quadrant prepares this information using rate data that insurers are required to file with the state Department of Insurance. These rates are based on a sample profile created by Reviews.com for comparative purposes.
Best North Carolina Homeowners Insurance Companies
Erie Insurance
Pros
- Thorough base policy
- Two options for flood insurance coverage
Cons
- No mobile app
- Not many online capabilities
Erie Insurance offers a base policy that’s heftier than what most other companies provide in North Carolina. The company includes standard homeowners insurance coverage, plus coverage for pets, expanded theft protection, guaranteed replacement cost, and more.
While this expanded policy doesn’t include flood insurance, Erie offers two add-on coverage options for flooding. You can purchase flood insurance through Erie or The National Flood Insurance Program.
Customers who prefer to handle things online might be disappointed with Erie Insurance’s lack of an app for homeowners insurance. The website only offers limited capabilities. Customers have to connect with an agent for a quote or to file a claim.
Travelers
Pros
- Several possible discounts
- Helpful information for customers
Cons
- Low J.D. Power rating
Travelers offers highly affordable homeowners insurance premiums in North Carolina. It also provides a variety of ways to save extra money on your rates, such as green home and multi-policy discounts. The website is easy to use and has a section full of helpful resources for its customers, like home and fire safety info and moving tips.
Its J.D. Power rating leaves a little to be desired, unfortunately. For overall customer satisfaction, the company ranked just below average.
USAA
Pros
- Military uniform coverage
- Option for full replacement cost coverage
Cons
- Only available to the military
USAA strictly serves active military members, veterans, and their families. But for the military community, it offers an array of benefits like coverage for the loss of uniforms for active military members.
When insuring their home, USAA members can also choose full replacement cost coverage for their policy. USAA replaces Items at the original value, not the depreciated value.
Nationwide
Pros
- Affordable premiums
- Several discounts available
Cons
- Lower J.D. Power rating
Nationwide offers some of the most affordable premiums for homeowners insurance in North Carolina. Aside from already being a cost-efficient option, there are several discounts you could qualify for, such as home renovation and protective devices discounts.
One thing to be mindful of is Nationwide’s overall customer satisfaction rating from J.D. Power, which falls just below the average mark. This means customers might receive a less than satisfactory experience when dealing with customer service or throughout their claims process.
State Farm
Pros
- Strong financial rating
- High amount of coverage
Cons
- Flood insurance not included
State Farm is a well-known name in insurance, and it has a superior financial rating to back it up. It’s also known for great coverage. This includes features like loss-of-use coverage and personal liability coverage.
What it doesn’t include is flood coverage. State Farm requires you to purchase it separately. This coverage is vital for North Carolina homeowners, since floods can occur at any time.
The Cheapest Homeowners Insurance Companies in North Carolina
| Largest Companies by Market Share in North Carolina | Average Annual Premium |
| Heritage Prop & Cas Ins Co | $557 |
| Lighthouse Prop Ins Corp | $567 |
| First Community Ins Co | $581 |
| Universal N Amer Ins Co | $584 |
| Lititz Mut Ins Co | $665 |
| North Carolina Farm Bur Mut Ins Co | $686 |
| Safeco | $711 |
| Travelers | $738 |
| Nationwide | $750 |
| Garrison Prop & Cas Ins Co | $847 |
| Erie Insurance | $919 |
| United Prop & Cas Ins Co | $988 |
| Metropolitan Insurance | $1,057 |
| USAA | $1,090 |
| State Farm | $1,411 |
| Age of Home (years) | Sample Annual Premium |
| 5 | $814 |
| 20 | $1,053 |
| 35 | $1,084 |
| 50 | $1,102 |
| Average Across Ages | $1,013 |
Top 3 Cheapest Homeowners Insurance Companies in North Carolina
- Heritage Property & Casualty Insurance Company – $557
- Lighthouse Property Insurance Company – $567
- First Community Insurance Company – $581
Top 3 Most Expensive Homeowners Insurance Companies in North Carolina
- State Farm – $1,411
- USAA – $1,090
- Metropolitan Insurance – $1,057
The cheapest homeowners insurance companies in North Carolina are Heritage Property & Casualty Insurance Company, Lighthouse Property Insurance Company, and First Community Insurance Company. On the other hand, the most expensive homeowners insurance companies in North Carolina are State Farm, USAA, and Metropolitan Insurance.
We established these rankings based on each company’s average annual premium. The rates acquired are based on general profiles, but each customer will have a unique experience. To find the best value for your coverage needs, contact homeowners insurance companies for personalized quotes.
Homeowners Insurance FAQ
Is homeowners insurance required in North Carolina?
North Carolina law doesn’t require homeowners insurance. And even though that’s the case, if you have a mortgage, your lender may require you to purchase homeowners insurance to protect its assets.
What is the cheapest homeowners insurance in North Carolina?
Our research indicates the cheapest homeowners insurance in North Carolina based on average annual premiums is Heritage Property & Casualty Insurance Company. The best way to find the most affordable insurance for you is to contact companies for personal quotes.
About the Authors
Lorraine Roberte is a South Florida-based personal finance writer. Her work has been published on sites such as Thrive Global, Elephant Journal, Red Tricycle and Tweak Your Biz.
