3 tips for shopping for home insurance in North Carolina
Before you buy homeowners insurance in North Carolina, you should be sure you're protected against the state's severe weather, including hurricanes and flooding.
Ask about windstorm insurance
Homeowners insurance generally covers the cost of repairs if your home is damaged by wind or hail. However, since North Carolina sees frequent hurricanes, tropical storms, and tornadoes, policies often exclude coverage for wind and hail in high-risk areas.
If that’s the case, you’ll need windstorm insurance — a special type of property insurance that specifically covers your home and belongings from wind or hail damage. Windstorm insurance is sometimes available as an add-on to your homeowners insurance, though it can also be purchased as a separate wind-only policy.
Consider buying flood insurance
Homeowners insurance does not cover water damage caused by flooding in North Carolina. Given the significant amount of damage that can be caused by flooding, North Carolina residents who don’t have flood insurance may need to pay tens of thousands of dollars or more out of pocket in the event of a flood.
Most home insurance providers in North Carolina offer NFIP flood insurance as a separate policy. Some companies also offer their own private flood insurance or flood insurance add-ons that you can add to your home insurance for an additional fee.
Learn more >> How much is flood insurance in North Carolina?
Look into specialty home insurance
North Carolina residents who need specialty home insurance should make sure they have the right type of coverage for their needs. If you own a high-value home, a mobile or manufactured home, a vacation home, or rental home, you’ll need a home insurance policy that is specifically designed for your situation.
Learn more >> Mobile home insurance in North Carolina
How to buy homeowners insurance in North Carolina
The cost of home insurance in North Carolina is a little lower than the national average, but comparing quotes from multiple companies is still the best way to make sure you’re getting the best coverage at the lowest possible rate.
Here are a few steps to follow as you shop for homeowners insurance in North Carolina:
1. Reach out to a licensed Policygenius insurance agent.
Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price. Our agents do this for free with no impact to your credit score.
2. Ask about the specific concerns you have.
Every situation is different, so you need to have an insurance policy that specifically addresses your unique needs. For example, if you have a swimming pool or certain dog breeds deemed “dangerous,” make sure to mention these things to your agent so they can help you find the right coverage for your needs.
3. If you’re unable to find homeowners insurance on the private market, ask about E&S insurers.
Excess and surplus insurance is designed for homes that are considered too high risk to insure on the standard market. This coverage tends to be more expensive than standard homeowners insurance and isn’t backed by the state, which means the company isn’t obligated to comply with insurance regulations in your state. This can be risky, but there are some situations where E&S insurance coverage may be your best option.
4. If you’re still struggling to find coverage, ask about your state’s FAIR Plan.
The North Carolina FAIR Plan is designed to be a last-resort coverage option for homeowners who are not able to secure insurance on the private market. The North Carolina FAIR Plan does not compete on the private market and homeowners must have two denials from other insurance companies to qualify for coverage.
5. Figure out how high of a deductible you can afford.
You’ll want to set your deductible to an amount you can afford to pay in the event you need to file a claim due to loss or damage. The higher your deductible, the lower your home insurance rates — and vice versa.
6. Compare quotes from a Policygenius agent.
Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent can walk you through your quotes to help you find the best policy for your coverage and budget needs.
7. Choose your policy, sign it, and pay your first premium.
After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you, including canceling your old policy, if you had one. The only thing left to do is sign your new policy and pay your first premium.
Why is it so hard to get homeowners insurance in North Carolina?
One of the biggest factors in rising insurance costs in North Carolina and reduced availability of homeowners insurance is climate change. North Carolina has seen an increase in the severity of tornadoes, floods, and hurricanes over the years, which is causing insurance costs to go up and availability to go down.
Inflation is also causing an increase in home insurance costs. The cost of labor and supplies to repair or replace a damaged home has gone up significantly over the last few years, which means insurers are more cautious about taking on new customers and in turn are charging higher rates.
Learn more >> Why did my home insurance rates go up?
What if I can’t find home insurance coverage in North Carolina?
You have a few options to consider if you can’t find coverage in North Carolina:
Use an insurance marketplace. Insurance marketplaces like Policygenius partner with dozens of home insurance companies, including E&S insurers that specialize in offering coverage to homeowners who were denied coverage on the private market. One of our licensed agents can help you compare quotes from different insurers to find one who is willing to offer you coverage.
Ask if you can make home renovations to mitigate risk. If your insurance company is still writing policies in your area, but their underwriting requirements are stricter, ask if there are improvements you can make to your home that will make you more insurable. This might mean installing fire-resistant roofing or wind-resistant storm shutters to better protect your home against extreme weather.
Talk to your neighbors. If you live in an area at high risk of storm damage, odds are your neighbors are also having trouble finding coverage. Ask around to see if anyone had success with a specific insurance company.
Apply for home insurance through the North Carolina FAIR Plan. As a last resort, you’ll likely be able to get a policy through the North Carolina FAIR Plan. While it offers less coverage and is more expensive than traditional policies, it’s a good stop-gap until you’re able to find coverage on the traditional market.
