Best and cheapest homeowners insurance companies in North Carolina

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Homeowners in North Carolina pay an average of $3,124 per year for home insurance, but your actual premium could be quite different from what your neighbors pay. Insurers look at a wide range of factors like your home’s age, construction type and proximity to fire stations and coastlines, which means two similar homes on the same block can carry noticeably different costs.

If affordability is your top priority, State Farm offers the lowest average rates in North Carolina. But the cheapest policy isn’t always the right one. It’s worth considering financial strength, customer satisfaction, and third-party ratings before making your decision.

How to find the right policy in 3 steps

Estimate your coverage needs. Aim for enough dwelling coverage to fully rebuild your home at today’s construction prices.
Compare at least three quotes using identical coverage limits and deductibles – rates for the same policy can vary by hundreds of dollars.
Look beyond price. Check financial strength ratings (AM Best) and customer satisfaction scores (J.D. Power) before committing to the cheapest option.

Our choice: Compare the best homeowners insurance companies in North Carolina

Shopping around is essential when buying insurance in North Carolina. The insurer that works well for a friend or family member may not be the right match for your home and situation.

Below are our top picks for homeowners insurance companies in North Carolina.

Company group	Annual premium	AM Best rating	NAIC rating	Overall rating (out of 5)
North Carolina Farm Bureau	$1,957	A-	0.46	4.33
State Farm	$1,212	A+	1.15	4.30
Erie Insurance	$5,979	A	0.46	3.92
Nationwide	$4,763	A	1.34	3.66
USAA*	$2,836	A++	0.46	4.52

*USAA is only available to military community members and their families.

What are the cheapest homeowners insurance companies in North Carolina?

State Farm offers the cheapest homeowners insurance in North Carolina, with average rates of $101 per month or $1,212 annually.

The cheapest homeowners insurance company in North Carolina also depends on how insurers weigh local factors like climate risk, claims history, and building costs, which is why the lowest-cost provider can vary from one state to the next. Getting quotes from a few different insurers is the best way to find the lowest rate for your specific situation.

Company group	Annual premium	Monthly premium
State Farm	$1,212	$101
North Carolina Farm Bureau	$1,957	$163
Nationwide	$4,763	$397
Erie Insurance	$5,979	$498
USAA*	$2,836	$236

*USAA is only available to military community members and their families.

Home insurance rates can vary by hundreds – even thousands – between insurers

Even within the same state, premiums can swing by hundreds of dollars based on factors you might not think about, including:

Your exact ZIP code, local claim history, and proximity to the coast, wildfire zones, or areas prone to severe weather
Your home’s age, size, roof type, construction materials, and the overall risk your property carries
Distance to the nearest fire station or fire hydrant
Your credit-based insurance score
Whether you’ve filed claims in the past five to seven years

How much does homeowners insurance cost in North Carolina?

The average homeowners insurance cost in North Carolina is $3,124. That’s $581 higher than the national average of $2,543.

State averages provide a helpful reference point, but they don’t tell the whole story. Your actual rate will be driven by factors unique to your property and coverage choices, including your ZIP code, home value, roof condition and the limits you select.

Annual premium	Monthly premium	Difference compared to national avg.
$3,124	$260	$581 more

People also asked: Is homeowners insurance required in North Carolina?

There is no legal requirement to carry homeowners insurance in North Carolina, but if your home is mortgaged your lender will almost certainly require a policy that covers the full cost to rebuild the property after a total loss. Standard policies generally include dwelling, liability and personal property coverage, though the specifics vary from one insurer to the next.

Estimate your costs and compare homeowners insurance quotes in North Carolina

The calculator below can help you estimate what homeowners insurance might cost in your state. Adjust your dwelling coverage, liability limits and deductible to see how those choices influence your average annual rate alongside the lowest and highest rates available in your area.

Keep in mind that your actual quote will reflect details unique to your property, including its age, construction type, claims history and exact location within the state. Treat the calculator as an initial guide and follow up by comparing quotes from at least three insurers to find your true lowest rate.

Homeowners insurance rates by state calculator

See how the average annual home insurance rates vary with the options chosen.

State

North Carolina

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington, D.C.West VirginiaWisconsinWyoming

Dwelling coverage

Liability coverage

Deductible

Standard ($2500)

Standard ($2500)Standard ($1000)$2,500 with 2% Hurricane deductible$1,000 with 2% Hurricane deductible

Average annual home insurance rates in
North Carolina

$2,254 Average rate

Average rate

$2,254/Yr

Lowest rate

$1,053/Yr

Highest rate

$3,527/Yr

Rates by carriers in North Carolina

Company	Average annual rate
State Farm	$1,053
North Carolina Farm Bureau	$1,647
USAA	$2,387
Nationwide	$2,654
Erie Insurance	$3,527

Methodology

Insure.com commissioned Quadrant Information Systems to analyse home insurance rates from major insurers in the U.S. The analysis includes over 37 million quotes from 134 companies across more than 34,000 ZIP codes, using standardized coverage levels to calculate national averages. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Guest Medical limit: $5,000. Deductible limit: $1,000. Personal property: 50% of dwelling coverage for replacement value

Last calculator data updated on: 2026

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in North Carolina by city

See rates in your city

How do I choose the right homeowners insurance in North Carolina?

Selecting the right homeowners insurance in North Carolina means focusing on three core factors: enough coverage to rebuild your home from the ground up, a deductible you can realistically afford and an insurer backed by strong financials and dependable service. The ideal policy finds the right balance between cost and protection, because a low monthly rate matters very little if claims take forever to resolve or your coverage limits don’t hold up when it matters.

What to look for in a homeowners insurance policy:

Replacement cost coverage. This is typically required by your mortgage lender and pays to rebuild at current construction prices rather than your home’s depreciated market value. It’s included in most standard policies, but make sure the estimate reflects what labor and materials actually cost in your area today.
A deductible that fits your budget. Opting for a higher deductible brings your premium down but raises your out-of-pocket expense when you file a claim. Set it at an amount you could realistically pay without putting a strain on your finances.
Adequate liability limits. This coverage protects you if a guest is injured at your home or you accidentally cause damage to someone else’s property. Most insurance professionals recommend holding at least $300,000 in liability protection.
Strong claims handling. Look at J.D. Power and AM Best ratings and spend time reading verified customer reviews. An inexpensive policy from an insurer with poor service can end up costing you significantly more when a claim arises.
Quotes from at least three insurers. Because identical coverage can be priced very differently across companies, getting multiple quotes is the only way to be confident you’re paying a fair rate.

The cheapest policy isn’t always the best deal

Going with the lowest premium often means accepting trade-offs somewhere else, such as a higher deductible, narrower coverage limits or exclusions for things like water backup or roof damage. Before committing to the most affordable option, dig into what the policy actually covers and how much you’d be responsible for after a claim. A policy that trims $200 from your annual bill can become an expensive mistake if it leaves meaningful gaps in your protection.

What are the most common natural disasters in North Carolina?

According to the Federal Emergency Management Agency (FEMA), a U.S. agency that manages disaster response and flood risk, the most common natural disasters in North Carolina are some of Ice storm and Winter weather. These risks can significantly impact homeowners insurance costs and coverage needs, especially in high-risk areas.

Natural disaster exposure differs considerably from state to state, and so does what a standard policy actually pays for. Most homeowners insurance plans exclude floods and earthquakes, and both require separate coverage such as flood insurance through FEMA’s National Flood Insurance Program or a stand-alone earthquake policy or endorsement. Review your policy before a disaster occurs and add coverage for the major risks in North Carolina so you aren’t left covering losses on your own.

The table below shows the expected annual losses from natural disasters in North Carolina:

Natural Hazard(s)	Expected Annual Loss
Ice storm and Winter weather	Very High

Standard policies don’t cover every disaster

Floods and earthquakes are typically excluded from standard homeowners insurance, which means a major event could leave you with significant out-of-pocket expenses. Depending on where you live in North Carolina, a separate flood policy or earthquake endorsement may be necessary for full protection. Review your coverage before a loss occurs rather than after.

How we picked the top-rated home insurance companies

We used sample rates from Quadrant Data Services for coverage of $300,000 for both dwelling and liability coverage and a $1,000 deductible. We analyzed more than 37 million quotes from 134 companies.

We also gathered AM Best financial strength ratings for each insurance company, along with each company’s National Association of Insurance Commissioners (NAIC) complaint ratio. The NAIC is a regulatory support organization made up of state insurance regulators, and its complaint ratio compares how many complaints an insurer receives to the industry average.

We used these data points to create a score out of five. Only companies for which all three data points are available were included in the comparison.

Frequently asked questions

Does home insurance cover windstorms in North Carolina?

Homeowners insurance typically covers wind damage. However, in some states – particularly those vulnerable to damage from hurricanes – your homeowners policy might have a separate deductible for storms such as hurricanes or tropical storms.

These deductibles are often much higher than the deductible that applies to the rest of your homeowners insurance coverage. North Carolina does allow separate deductibles for hurricanes and windstorms.

In some cases, windstorm coverage has to be purchased separately; make sure to ask when you buy a policy.

Do I need flood insurance in North Carolina?

If you live in a high-risk flood zone in North Carolina, you need to purchase flood insurance. A standard homeowners insurance policy does not cover damage from floods. You can check your flood zone on FEMA’s flood maps.

About 90% of all natural disasters include flooding, according to the federal government’s National Association of Insurance Commissioners, so all homeowners should consider flood insurance.

Do homeowners insurance policies cover building code upgrades?

Homeowners insurance typically does not cover the extra cost of bringing your home up to current building codes after a covered loss. If your home is older, you may be required to rebuild parts of it to meet updated regulations, which can increase repair costs significantly.

According to the Insurance Information Institute (III), a nonprofit that provides insurance data and research, homeowners can add an ordinance or law endorsement to cover the cost of required code upgrades during repairs or rebuilding. Without it, those costs are typically paid out of pocket.

How can I save on homeowners insurance?

Comparing quotes from multiple insurers is one of the most effective ways to lower your homeowners insurance costs. This gives you a clear view of what’s available so you can find solid coverage at a competitive price.

Increasing your deductible is another way to bring down your premium. Just keep in mind that after filing a claim, you’ll need to pay that deductible in full before your insurer steps in to cover the rest.

Many insurers also offer a range of discounts to qualifying policyholders. Bundling your home and auto insurance with the same company, for instance, is a common way to reduce what you pay overall.

Home safety upgrades can also help. Theresa Breunig-Silbernagel, head of strategy and experience at Main Street America Insurance, recommends installing smoke detectors and security systems.

“Smart home systems such as motion sensors, video doorbells and water leak sensors will send you an alert on your cell phone so you can handle the issue before it becomes a real problem,” she says. “Often, these installed devices can result in discounts.”

Methodology

Insure.com commissioned home insurance rates from Quadrant Data Services in all 50 states as well as Washington, D.C. with coverage levels of $300,000 for dwelling and liability and with a $1,000 deductible. Average rates were calculated using quotes from 134 insurance companies. To rank insurance companies, we used the average rate in the state along with NAIC complaint ratios and AM Best financial stability ratings.

Natural disaster data was drawn from FEMA’s National Risk Index.

Sources:

FEMA. “Flood Insurance.” Accessed May 2026.

Insurance Information Institute. “How much homeowners insurance do you need?” Accessed May 2026.

National Association of Insurance Commissioners. “Flood Insurance/National Flood Insurance Program (NFIP).” Accessed May 2026.

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Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.