Home Owner’s Insurance in North Carolina

Like most other states, North Carolina law requires homeowners to take out adequate insurance for their home and contents; renters are also advised to have renters insurance.

Your mortgage company may decide how much coverage you need and require you to purchase a certain minimum amount; however under NC law you aren’t required to buy coverage from the insurance company recommended by the mortgage lender.

Always shop around and compare quotes - experts say you should get at least three quotes from three different companies. North Carolina ranks about midway down the list of states as far as the cost of homeowner’s insurance goes, despite a couple of recent hurricanes that have helped to raise premium amounts.

Depending on where you live in North Carolina, you may be considered a high risk option. Those people living on or near the coast or Outer Banks are familiar with the damage a hurricane or strong winds can do; and many homes by the coast are also built precariously close to shifting sand dunes and prone to erosion. Wildfires can be a problem in the mountainous western part of North Carolina.

Many houses on the North Carolina coast are owned as vacation homes and used only during the summer months. North Carolina, along with most of the other states on the East coast offers additional Hurricane deductibles for homeowners. When mandatory deductibles apply, insurance companies will not sell insurance to homeowners without having a hurricane deductible in the policy.

The state’s "beach plan" also offers homeowners insurance for properties along the vulnerable Outer Banks where the owner may not be able to find adequate coverage through the normal channels.

Most homeowner’s insurance policies in North Carolina don’t cover damage from floods-one of the first things to do is to see whether your location is considered a high flood-risk area. If you do need additional flood damage insurance, you would have to purchase it through the federal government.