North Carolina Homeowners Will See a Rate Increase This Year

24 Oct
Roanoke Marshes Lighthouse – Manteo NC (Dare County, North Carolina)

North Carolina homeowners will be experiencing higher premiums for homeowners insurance starting next spring, but the pain is nowhere near as bad as it could have been. Mike Causey, North Carolina’s Insurance Commissioner managed to negotiate the rate increase requested by the North Carolina Rate Bureau (the insurance industry’s lobby) from an average 17 percent increase to an average increase of only 4 percent.

Obviously, the rate increase will absolutely depend on where your home is located. Coastal dwellers will pay a much higher rate increase than homeowners who live further inland. According to the Insurance Commissioners office, the biggest rate increases will happen in Duplin and Lenoir counties, both of which were hit hard by recent hurricanes. These counties will see an average increase of 9.8 percent while inland counties such as Cherokee and Clay will see a slight decrease.

Who’s Paying the Most for Homeowners Insurance

While most North Carolina homeowners will see a rate increase this year, there are vast differences in the premium paid for homeowners insurance across the state. Here is a quick look at the least and most expensive zip codes for homeowners insurance in North Carolina. Prices are from data and are based on $200,000 dwelling coverage, a $1,000 deductible and $100,000 in liability coverage:

The most expensive ZIP codes in North Carolina for homeowners insurance:

All of these areas are coastal which ups the risk for insurers and pushes up the cost of insurance. In addition to these cities, oceanfront areas such as Wrightsville Beach, Atlantic Beach, and Nags Head all come in with higher than average premiums as well. Coastal communities are always more expensive for insurance due to risks from hurricanes, hail, severe thunderstorms and flooding. 

The least expensive ZIP codes for homeowners insurance in the Tar Heel State:

As you can see, the difference in premiums is pretty shocking, with coastal homeowners paying almost three times more than homeowners who live more inland. If you call one of North Carolina’s largest cities home, you will most likely pay more than the least expensive areas but well below what coastal dwellers are paying.

Tips for Lowering Your Premium

Here are a few tips to help keep your premium affordable regardless of where you live in North Carolina:

Increase Your Deductible: Insurers love it when you have more skin in the game so upping your deductible will help lower your premium. If you can afford to double your deductible you should see a discount of at least 20 percent or more. 

Secure Your Home: If you are living near the coast updating your home can result in some serious savings on your homeowners insurance. Adding a wind resistant roof, storm shutters or a sprinkler system should result in a discount. Check with your insurer to see which upgrades will garner a discount. 

Shop Your Coverage: If your rates are headed up its time to shop your coverage. This is one of the best ways to lower your premium. Insurers rate risk differently so premium quotes can vary dramatically. Shop at least five different insurers to get the best rates. 

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