North Carolina homeowners insurance
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Managing your residential investment
When it comes to taking care of your business, homeowners like you know that there’s more to it than cutting your lawn and keeping hedges trimmed. Your house is where you live, eat, sleep and make memories with the ones that are nearest and dearest to you. It’s a major investment that you need to maintain and protect from perils such as fire and theft. Covering your property with an insurance plan is also a big part of being a responsible homeowner. VIU by HUB is here to help you understand the essential elements of North Carolina homeowners insurance.
Looking at life in the Tarheel State
North Carolina is one of the 13 original states that formed the United States. It is affectionately known as the Tarheel State because it was a major supplier of tar, pitch and turpentine in the 1700s and 1800s. Evidence of humans living in North Carolina dates back as far as 10,000 BC, but today’s numbers give insight into considerations for living there now. North Carolina has:
• Nearly 54,000 square miles in total area, making it the 28th largest state by area.
• Almost 10.7 million residents, making it the ninth largest state by population.
• Over 4.8 million housing units, with the majority being owner-occupied.
• Over 4 million households.
• Almost 86% of residents live in their current home for a year or longer.
Even as one of the nation’s most populous states, North Carolina continues to be one of the fastest growing, ranking ninth overall in growth for 2022. Population growth impacts real estate and housing, especially for homeowners. Finding the right insurance plan is as important as ever.
North Carolina has three distinct topographical regions: the eastern Atlantic coast, the central Piedmont region and the mountainous western region, which includes the Appalachian Mountains. Residents face severe weather during the summer and winter. North Carolinians can expect to deal with hurricanes, tornadoes, flooding, snow and ice storms. These weather events occur annually, so as a property owner, it’s important to have a plan for North Carolina homeowners insurance.
Investigating North Carolina homeowners insurance
North Carolina does not require that residents have homeowners insurance; however, mortgage lenders typically require this coverage for those who are financing their homes. Homeowners insurance protects the lender’s investment (and yours) as you pay the mortgage. If fire, theft or other perils damage or destroy your dwelling, your insurance can cover the costs to repair, rebuild or replace. According to Zillow, the average home value in North Carolina is over $300,000. Even without a mortgage, can you afford to replace your home out-of-pocket?
Understanding North Carolina homeowners insurance
Generally, your policy should have six coverages: four related to your property and two related to liability.
The most critical feature of any homeowners insurance policy involves the dwelling or structure. Dwelling Coverage addresses damage and losses to the building and attached structures. It also covers the systems in your home, including plumbing, electrical and HVAC, among others. Your limits for this coverage will depend on the value of your home. Generally, Dwelling Coverage should be at least 80% of the Replacement Cost of your residence. This is the cost to fully repair or replace your home without considering depreciation.
If your house has a detached garage, storage shed or other separate buildings, Other Structures insures them from covered perils. Usually, coverage for these buildings has a limit of 10% of your Dwelling Coverage. As with your main dwelling, your coverage limit for other structures should be at least 80% of their replacement cost.
A North Carolina homeowners insurance policy usually includes the contents of your house and other possessions belonging to you and the people in your household. Policies typically limit Personal Property to 50% of Dwelling Coverage, unless the policy specifies otherwise. Items that are especially at risk of loss, such as antiques, art and jewelry, may require higher coverage limits or separate policies.
Loss of Use
If a covered peril makes your home unusable, Loss of Use coverage helps pay for temporary expenses such as housing, meals and offsite storage. Limited to 20% of Dwelling Coverage in most cases, this protection only covers expenses above your normal living expenses.
Homeowners insurance typically covers your liability and that of others on your policy in the event of property damage or injury to others. Personal Liability not only pays for damages but your legal defense as well. Policies do not cover intentional acts.
Homeowners insurance may also include coverage for the medical bills of someone who has an accidental injury while on the premises of your home. Depending on your policy, it may also cover accidental injury that you and other insured people cause to others away from home. Medical Payments does not pay for your injuries or those of anyone that lives with you, and you should not confuse this coverage with health insurance.
Your homeowners insurance plan typically doesn’t cover flooding, earthquake or, in some cases, windstorms and hail. Flood Insurance is available on a separate policy from an insurance company or from the National Flood Insurance Program.
VIU by HUB helps you to analyze quotes and see which plans offer the best coverage for your situation.
Making dollars and “sense” of your plan
Homeowners in North Carolina pay $1,295 on average annually for a Dwelling Coverage of $250,000. This is slightly less than the national average annual premium of $1,430. Your premium for homeowners insurance will depend on these factors:
• Perils insured against.
• Coverage limits.
• Credit history.
• Claims history.
• Age of home.
Having a higher deductible can result in a lower premium but higher out-of-pocket costs for a claim. Insurers also may offer discounts for having certain home features or multiple policies.
This information is intended for general informational purposes only and is not intended to constitute legal advice.
Home insurance in North Carolina by city
Understand risks, minimum state coverage requirements, average costs and other specifics that can impact home insurance policies and premium rates in your city.