The Best Cheap North Carolina Homeowners Insurance for 2023

When most homeowners set out to purchase homeowners insurance, they're searching for a product that is comprehensive enough to protect their largest financial investment, yet inexpensive enough to afford. To help homeowners find the right coverage at the right price, we've identified the best homeowners insurance in North Carolina. Here, we highlight the cheapest insurance carriers in four different categories and outline which parts of the state are the most (and least) expensive to secure homeowners coverage.

• Cheapest overall: Bankers
• Cheapest for new homes: Kemper
• Cheapest for older homes: Bankers
• Cheapest when you've made a claim: Lititz Mutual

Cheapest overall for North Carolina

The cheapest homeowners insurance overall in North Carolina is sold through three companies that may be lesser-known nationally, but are big players in North Carolina:

• Bankers, offering an average annual rate of $1,076
• Lititz Mutual, coming in with an average annual rate of $1,123
• Kemper, close behind with an average annual rate of $1,124

Cheapest for new home construction

Some people are surprised to learn just how inexpensive it can be to insure a new home. That's because insurance companies aren't quite as worried about what might go wrong with a new build. The cheapest homeowners insurance for new North Carolina homes are:

• Kemper, with an average annual rate of $357
• Nationwide, offering an average annual rate of $431
• Auto Owners, coming in with an average annual rate of $492

Cheapest for older homes

Older North Carolina homes have character, but they're also more likely to be hit with problems like old roofs, mold, and tree roots that threaten the foundation and plumbing. That's what makes them more expensive to insure. Still, it’s possible to find cheap homeowners insurance in North Carolina. The top three companies for insuring old North Carolina homes cheaply are:

• Bankers, offering an average annual rate of $926
• Lititz Mutual, with an average annual rate of $1,039
• Kemper, coming in with an average annual rate of $1,081

Cheapest when you've made a claim

Insurance is vital. However, making a claim can cause a homeowner's rate to rise for a period of time. The cheapest coverage for people who have previously made a claim is courtesy of:

• Lititz Mutual, with an average annual rate of $1,039
• North Carolina Farm Bureau, offering an average annual rate of $1,087
• Kemper, with a slightly higher average rate of $1,201

Average cost in North Carolina compared to the national average

The average cost of homeowners insurance in North Carolina is $1,630, just shy of the national $1,725 average.

North Carolina homeowners insurance overview

Finding the best homeowners insurance in North Carolina can take a little time, primarily because there are so many options. While a low rate is important, it's not the only factor worth consideration. Here are other important things to consider while shopping for coverage:

Different types of homeowners coverage

As they shop, a homeowner must determine which of six different types of policies they should choose. Coverage ranges from basic policies to policies with all the bells and whistles. The best home insurance companies offer them all.

Level of coverage

The thing about a bare-bones insurance policy is that it may be cheap, but it is unlikely to provide a full range of coverage. Every homeowner lives with the knowledge that their home can be damaged or destroyed. It's up to them to choose the level of coverage that makes them feel most secure and allows them to rest easy.

Amount of deductible

A deductible is an amount the homeowner must pay toward a claim. Let's say a homeowner has a leaky roof that will cost $10,000 to repair, and their deductible is $1,000. That means the homeowner must pay $1,000 of the repair cost, and the insurance company will pay the remaining $9,000.

Potential discounts

Taking advantage of all possible discounts is one easy way to land cheap homeowners insurance in North Carolina. It is not possible to fairly compare one policy to another without factoring in discounts. Nearly every insurance company offers a full menu of discounts, covering everything from whether a home is part of an HOA to if there's an alarm system installed. In other words, almost everyone qualifies for one or more home insurance discounts.

What are the most common homeowners insurance claims in North Carolina?

Every region is known for a different set of natural disasters. The Midwest has its tornados and ice storms, the West Coast deals with earthquakes and wildfires, and North Carolina is frequently in the news for hurricanes and tornadoes. Here are some of the most common homeowners insurance claims in the Tar Heel State:

Hurricanes

It's easy to think of hurricanes as being limited to coastal areas, but recent storms have shown that inland cities can be hit by the impact of hurricanes too.

Water damage

Standard homeowners insurance policies do not typically cover flooding that results from naturally occurring events, like flash floods. The water damage covered by a standard policy is caused by a system failure, like a burst pipe or leaky dishwasher. Homeowners who live in a flood zone should ask about purchasing the proper level of flood coverage.

Burglary

Burglaries occur everywhere, and North Carolina is no exception. Common homeowner's claims typically include things like theft and broken windows.

Personal liability

Personal liability claims take place when someone other than the homeowner or their immediate family is injured on the property. It could be as simple as injuries sustained falling down a few stairs and spraining their ankle, or as serious as being bit by the family dog and needing plastic surgery.

Homeowners insurance coverage options and discounts in North Carolina

The "ideal" homeowners policy offers the highest level of protection at the lowest price. The tricky part for the homeowner is figuring out where that sweet spot is. Ultimately, it comes down to examining potential coverages and comparing them against costs, including any available discounts. Here, we list both coverage and discount options.

Coverage options

The fact there is a wide range of coverage options available means homeowners can pick and choose until they find the level of coverage they're most comfortable carrying. They include:

HO-1: The most basic type of policy, HO-1 covers home and personal belongings at actual cash value against typical perils. Some insurance companies no longer offer this type of policy.

HO-2: This policy expands on the HO-1 by offering coverage against more than basic perils. It also includes protection against things like freezing, electrical surges, volcanic eruption, and damage due to the weight of ice, snow, or sleet.

HO-3: The HO-3 policy is one of the most commonly purchased forms of coverage. It covers a homeowner against a wide range of risks, unless otherwise excluded in the policy.

HO-4: Covers renters insurance and does not apply to homeowners.

HO-5: An HO-5 policy introduces some bells and whistles, including replacing home and personal property at replacement cost. It also allows a homeowner to include coverage for valuables like art, jewelry, and electronics.

HO-6: Coverage for condos, including details important to condo owners, like loss assessment coverage.

HO-7: Covers mobile homes, structures not typically covered under a traditional homeowners policy.

HO-8: Typically reserved for older homes that may not meet the requirements for another policy. This could be due to the type of wiring, plumbing, or roofing installed in the house.

Discount options

Each insurer offers its own set of discount options. Here's a sampling of the most common:

• Home and auto bundle
• Home upgrades
• New home
• Professional affiliation
• Home security system
• Advance pay
• Non-smoker
• Homeowners Association (HOA) membership

5 cheapest cities in North Carolina for homeowners insurance

There are several reasons it is more or less expensive to insure a home. It may be due to the crime rate in a particular area, how near (or far) a house is from a fire station, or could be due to the value of homes in the neighborhood. Here's a list of the five cheapest cities in North Carolina for homeowners insurance:

5 most expensive cities in North Carolina for homeowners insurance

Here are the five most expensive cities in the state for homeowners insurance:

Homeowners in North Carolina who own their property outright are not legally required to carry homeowners insurance. Anyone with a mortgage will likely be required by their lender to carry full coverage. That said, there are few financial products a person can buy that offer a bigger bang for the buck. Let's say that a homeowner is paying $2,000 per year to cover a $500,000 house and that house burns to the ground. If they have full replacement coverage, that means they won't pay anything more than their deductible for the house to be rebuilt.

Simply put, whether a home is large or small, expensive or relatively inexpensive, it's easier for most people to sleep at night knowing their house is covered in the event of peril.