Read time: 5 minutes | By SIA Group | Last Updated: August 2025 | In this article, we’ll discuss important factors to consider when choosing homeowners insurance in North Carolina.
Homeowners Insurance Going Up
Owning a home in North Carolina comes with plenty of pride — and plenty of risk. From hurricanes on the coast to hailstorms in the Piedmont, navigating a homeowners insurance guide isn’t just a formality, it’s essential protection. But in 2025, many homeowners are asking the same question:
“Why is my homeowners insurance going up, and what can I do about it?”
Let’s break down what homeowners insurance costs in North Carolina, what’s changing in 2025, common coverage gaps to watch for, and even who may not need certain types of coverage. For more details, refer to our homeowners insurance guide.
How Much Does Homeowners Insurance Cost in North Carolina?
On average, homeowners insurance in North Carolina ranges from $1,500 to $2,500 per year. But where you live makes a huge difference.
- Coastal counties (like Carteret, New Hanover, Dare): premiums can be 20–40% higher due to hurricane exposure.
- Inland areas (like Raleigh, Durham, Greensboro): typically lower, but still climbing with inflation and rebuild costs.
- Mountain regions (like Asheville): often lower than the coast, but wildfire risk is creeping in.
Real Example:
A Wilmington homeowner with a 20-year-old roof might pay around $2,200/year, while a Raleigh homeowner in a newer subdivision could pay closer to $1,500/year.
👉 Key cost drivers in NC: location, roof age, construction type, credit score, and prior claims history.
What’s Changing in 2025?
This year has already brought major shifts in NC homeowners insurance:
- Premium Increases: The North Carolina Department of Insurance approved filings that raised premiums in many counties, with average hikes between 7–14%.
- Higher Replacement Costs: Building materials and labor remain expensive, driving up home rebuild values.
- Stricter Underwriting: Carriers are tightening standards on roof age, electrical systems, and homes near the coast.
- Special Deductibles: Many policies now use percentage-based hurricane/wind deductibles instead of flat amounts.
Common Gaps NC Homeowners Overlook
Even with a standard policy, many North Carolina homeowners are surprised by what’s not covered:
- Flood Damage → Not included. Requires a separate flood policy (through NFIP or private insurers).
- Hurricane Deductibles → Often 1–5% of home value, which can mean thousands out-of-pocket after a storm.
- Replacement Cost vs. Actual Cash Value → If your policy uses “ACV,” you may only get depreciated value on belongings, not the cost to replace them.
👉 Many homeowners don’t realize these exclusions until they file a claim.
Who Might Not Need Full Coverage? (Radical Transparency)
Not every homeowner needs the same level of insurance. Reviewing a homeowners insurance guide can help decide what’s best for you.
- Condo Owners: Likely need an HO-6 condo policy, not a full homeowners policy. Your HOA’s master policy covers parts of the building.
- Brand-New Homes: With strong construction and modern roofing, some endorsements may not be necessary at first.
- Rural Properties Without Risk Factors: If you’re far inland and have a brand-new roof, you may not need high hurricane endorsements.
⚠️ But be careful — choosing too little coverage may leave you exposed when disaster strikes.
How to Lower Your Home Insurance Costs in NC
- Bundle your home and auto insurance → Often 15–20% off.
- Update your roof or add storm shutters → Carriers reward risk reduction.
- Install a monitored alarm system → Discounts for theft/fire prevention.
- Increase your deductible → If you can afford higher out-of-pocket, your premium drops.
- Shop around → Just make sure you compare coverage, not just price.
The Bottom Line
Homeowners insurance in North Carolina is getting more expensive in 2025, but understanding why rates are rising, what gaps to watch for, and how to lower costs can put you back in control. Use our homeowners insurance guide to help navigate these changes.
Not every homeowner needs the same coverage. The key is tailoring your policy to your home, your risks, and your budget.
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