North Carolina Home Insurance Rates

A home insurance policy will protect a policy holders’ home from any damage that may be incurred in the course of living. Home insurance will also protect against any financial duress by paying for any property damage or bodily injury for which the policy holder is liable. If a homeowner has a claim made against them, their insurer will act on their behalf by negotiating a settlement with the injured party. An insurance company may also defend their customer in court and will pay any judgments against them.

A bank will typically require a customer to insure for at least the amount of home loan they have against their property. However, the vast majority of North Carolina insurance policies will require their customers to have coverage of at least 80% of the home’s replacement value. There are various types of home insurance policies, and most companies in the state of North Carolina will offer the following:

  • Broad Form (HO-2) – this will cover a single family dwelling or townhouse against only predetermined and specifically listed perils.
  • Special Form (HO-3) – this will cover a single family dwelling or townhouse against all risks except for those that have been specifically excluded in the home insurance policy.
  • Homeowners Contents Broad Form (HO-4) – this will provide coverage for a renter’s personal property, but no coverage is provided for the building itself.
  • Homeowners Unit Owner’s Form (HO-6) – this will provide coverage for a condominium owner’s personal property, and will also include coverage for any portion of the building that the policy owner owns.
  • Homeowners Modified Coverage Form (HO-8) – this will insure the structure of an older property and is based on an actual cash value.

North Carolina home insurance premiums and rates can vary quite drastically, and therefore it is recommended that potential customers shop around to find the best insurance policy which offers the greatest value and at the lowest cost. Home insurance premiums are typically influenced by several factors, and these include:

  • Type of construction – An insurance premium will be impacted by how well a property can withstand or minimize any losses. Therefore, as a prime example of this, frame house will generally have far higher insurance premiums that houses constructed from brick.
  •  Location – It is a well known fact that there are higher crime rates in urban areas than in rural areas, and in addition to this rural areas will typically has less access to fire protection. Both of these issues will affect home insurance premiums.
  • Property age – The vast majority of new homes will qualify for a discount, and it is even true that some companies are extremely hesitant about insuring homes that are very old.
  • Deductibles – A deductible can best be described as the amount a customer has to pay before their insurance company begins paying, and therefore, the higher the deductible (the customer’s portion of the claim), the lower the premiums.
  • Amount of coverage – The amount of home insurance that is purchased will have an obvious impact on the size of the premiums.
  • Additional coverage – North Carolina, just like any other state, will have required state minimums for insurance. However, if a customer wishes to have extra or additional coverage this will have an impact on their premiums.

It must be said that home insurance rates in North Carolina have decreased recently, so it is important for customers to regularly review their home insurance policy. This will ensure that they still have adequate coverage, as many factors about the property or the people living in it can change, and also that the customer still qualifies for any available discounts. The current average North Carolina home insurance rate is $584, although it is important to realize that this is merely an average and the actual rate that someone pays will be affected by the criteria above. The North Carolina Department of Insurance can be contacted at (919) 733-3058.

Home insurance rates can also be affected by areas that have been impacted by natural disasters. This is of particular relevance currently as many homeowners in the Bladen and Cumberland counties of North Carolina have been evacuated from their homes due to wildfires that have spread through the state. The blaze was initially started by a lightning strike and actually managed to completely destroy 3 homes within its first 48 hours. Unfortunately, these blazes have caused extensive property damage and this has resulted in a number of claims at North Carolina home insurance companies.

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