The Best Home Insurance Companies in North Carolina in 2026

The average cost of homeowners insurance in North Carolina is $273 per month, according to Compare.com data. That’s higher than the national average of $234, as home insurance costs in North Carolina are on the rise due to extreme weather events like wildfires, hurricanes, and floods that have hit the state.

Homeowners insurance rates vary widely depending on your home, location, types of coverage, and insurance company. The cheapest insurer is State Farm, with an average rate of $90 per month for a $300,000 dwelling coverage policy.

Learn more about affordable homeowners insurance in North Carolina and how to find the right coverage.

Our Picks for North Carolina’s Best Home Insurance Companies

Homeowners in North Carolina can get coverage from various home insurance companies. Each company has unique benefits and drawbacks, and no single best company works for everyone.

We reviewed average rates, available coverage options, homeowners insurance discounts, and customer reviews and ratings to determine the five best home insurance companies in North Carolina.

Below, you can see which companies provide affordable coverage and who could benefit.

Company	Compare.com Rating	Average Monthly Premium	Average Annual Premium
State Farm	4.38	$235	$2,820
USAA	4.68	$169	$2,028
Amica	4.78	$132	$1,584
Allstate	4.18	$208	$2,460
Auto-Owners	N/A	$255	$3,060

We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on .

Best for bundling discounts

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Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components.	4.1 /5
J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.	643
$300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.	$90/mo
$500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.	$126/mo

Details

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

1.22

AM Best

AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).

A++

Why we picked this company

State Farm is a major player in the home insurance space and has the largest market share of premiums written (18.2%), according to the National Association of Insurance Commissioners (NAIC).^[2] For North Carolina residents with various insurance needs, State Farm offers a significant bundling discount when you get homeowners and auto policies with the company.

Pros

• Significant bundling discount

• Low average rates

Cons

• Mixed claims experience

• Poor customer service rating

Best for military members and veterans

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Details

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

Not rated

AM Best

AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).

A++

Why we picked this company

USAA is exclusively available to military members and veterans and offers banking and insurance products. North Carolina has nearly 95,000 active-duty service members, and veterans make up 7.3% of the population as of 2023.^{[3] [4]}

The company waives your deductible if you lose or damage personal property due to war, and it also covers military equipment. If you remain claims-free for five years, you may be eligible for a 15% discount.

Pros

• Military-specific benefits

• Claims-free discount

Cons

• Not available to all homeowners

• Frustrating claims experience

Best for customer satisfaction

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Details

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

Not rated

AM Best

AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).

Not rated

Why we picked this company

As part of the J.D. Power U.S. Home Insurance Study, Amica ranked highest in customer satisfaction in the homeowners and renters insurance segments.^[5] The company also has an A+ rating on the Better Business Bureau website and an excellent Trustpilot rating of 4.5 out of 5 stars, based on thousands of reviews.

Pros

• Very high J.D. Power customer satisfaction rating

• Plentiful reviews with good ratings

Cons

• Replacement cost only available as an add-on

• Only one regional office

Best for new homebuyers

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Details

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

Not rated

AM Best

AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).

A-

Why we picked this company

Allstate offers a homebuyer discount to recent homebuyers or those who purchased a newly constructed home, in addition to welcome and loyalty discounts. The insurance company also offers a diverse array of optional coverages, including water backup, musical instruments, and more. For North Carolina residents, Allstate has insurance agents across the state.

Pros

• New homebuyer discount

• Many available add-on coverages

Cons

• Below-average J.D. Power customer satisfaction rating

• Low Trustpilot rating

Best for high-value homes

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Details

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

Not rated

AM Best

AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).

A++

Why we picked this company

Auto-Owners Insurance is a good choice for homeowners insurance in North Carolina if you have a high-value home. The company provides specialized and uniquely tailored coverage options, including increased cost endorsement, equipment breakdown, and special personal property coverage.

The luxury housing market in North Carolina is growing, with a higher percentage of million-dollar homes in certain areas.^[6] Auto-Owners may be an appealing choice for homeowners in that demographic.

Pros

• Specialized coverage options

• Hurricane/wind mitigation discounts

Cons

• Below-average J.D. Power customer satisfaction rating

• Low Trustpilot rating with limited reviews

The Cheapest Home Insurance Companies in North Carolina

In today’s economy, every dollar matters. Finding affordable home insurance is essential, but rates can vary substantially between insurers. To find the most competitive rates, shop around and get multiple quotes.

For an idea of potential costs for homeowners insurance in North Carolina, below are the cheapest companies in the state for policies with $300,000 in dwelling coverage, according to Compare.com data.

The below rates in North Carolina are estimated rates current as of: Monday, August 31 at 5:00 PM PDT. 

Company	Average Yearly Premium
State Farm	$1,080
Unitrin	$1,608
USAA	$2,184
Travelers	$2,328
Allstate	$2,412
Auto-Owners	$4,440
Erie	$6,564
Nationwide	$6,564

We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on Monday, August 31 at 5:00 PM PDT.

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Average Cost of Homeowners Insurance in North Carolina

The average home insurance rate in North Carolina is $273 per month, according to Compare.com data. While that’s the average, costs can vary and largely depend on the amount of coverage you need. Your home insurance policy covers damages or even the replacement cost of the property. So the home’s value or the specific amount of coverage you get will affect your insurance premiums.

The table below shows average annual rates for various levels of dwelling coverage, according to Compare.com data.

Why Home Insurance Is Expensive in North Carolina

If you’re looking for affordable homeowners insurance in North Carolina, it can be challenging, as premiums continue to rise.

North Carolina home insurance increased by 7.5% on June 1, 2025, and will increase again by 7.5% on June 1, 2026, according to the North Carolina Department of Insurance.^[7] Multiple risk factors have driven up property insurance costs statewide.

Hurricanes

Extreme weather events like Hurricane Helene had a devastating effect, with total costs of $78.7 billion, according to the National Oceanic and Atmospheric Administration (NOAA) Office for Coastal Management.^[8] The cost to rebuild has affected premiums in North Carolina. The state also experiences tornadoes.

Wildfires

Various wildfires have also affected home insurance premiums. The state of North Carolina has a medium risk of wildfire, which is higher than 44% of U.S. states, according to Wildfire Risk to Communities. Additionally, more homes have been built in Wildland/Urban Interface areas, effectively increasing the risk of wildfire.^[9]

Flooding

Standard homeowners insurance doesn’t cover flood damage, so securing a separate policy can be a good idea if your home is at risk.

North Carolina Department of Insurance

The North Carolina Department of Insurance is a government agency that can help you understand your home insurance policy or handle a complaint about a specific matter.

The agency also regulates the insurance industry in North Carolina, issues licenses, and investigates potential fraud. If you have a question about homeowners insurance, you can contact the department at 1 (855) 408-1212. You can also file a complaint online.

What Homeowners Insurance Covers in North Carolina

Homeowners insurance coverage in North Carolina helps you protect your property and personal belongings. Most standard home insurance policies cover:

• Dwelling coverage: If there’s damage to your property from a covered peril like fire, lightning, or theft, home insurance covers costs associated with repairing or rebuilding your home.

• Personal belongings: A homeowners policy typically covers the contents of your home or personal property if someone steals them or a covered peril damages them.

• Liability coverage: Through this home insurance coverage, you protect your personal liability from potential lawsuits that could occur if you, a family member, or a pet causes bodily injury or property damage to another person. It also provides no-fault medical coverage, so anyone injured in your home can submit those bills to the insurer. Be aware that it doesn’t cover medical payments for you, though.

• Additional living expenses (ALE): If your home is uninhabitable due to damage from a covered loss, this coverage helps pay for the associated costs of living elsewhere. These expenses can include hotel and food costs. Insurers sometimes refer to it as loss of use coverage.

What home insurance doesn’t cover

While your homeowners insurance policy provides robust protection against theft and damage from certain natural disasters, it doesn’t cover everything and has certain exclusions. Home insurance typically doesn’t cover:

• Floods: Some areas of North Carolina are more prone to flooding, which standard homeowners insurance doesn’t cover. Homeowners in North Carolina can check their risk level through the North Carolina Flood Risk Information System (FRIS) and purchase a separate flood insurance policy if necessary.

• Earthquakes: While earthquakes can happen in North Carolina, they don’t pose a significant threat. But in the event of an earthquake that causes damage to the home, a standard homeowners policy won’t cover it.

• Wear and tear: Your property will experience normal wear and tear and may require updates, repairs, or renovations at some point. A home insurance policy won’t cover you in these cases.

It’s a good idea to read the fine print of your coverage to know what your homeowners policy does and doesn’t cover to avoid any potential surprises.

Do You Need Flood Insurance in North Carolina?

Depending on where you live, you may need flood insurance to protect you if there’s water damage. Note that standard homeowners insurance policies don’t cover floods.

If you live in a flood plain, you can get flood insurance through the National Flood Insurance Program (NFIP) in partnership with the Federal Emergency Management Agency (FEMA). You can also look into private flood insurance, which may offer coverage above the NFIP’s $250,000 building limit.

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Factors That Affect Home Insurance Costs in North Carolina

Various factors determine your homeowners insurance costs, not just the value of your home. Additional factors that can affect home insurance premiums include:

• Property type: Your home’s age and building materials play a major role in determining home insurance rates in North Carolina.

• Location: Every neighborhood has specific risk factors that insurance companies consider. These can include crime rates, theft, and proximity to fire and emergency services.

• Home insurance policy: The structure of your home insurance policy, including any endorsements or additional coverage options, can affect costs.

• Background: Insurance companies review your claims history and credit score when setting rates. In North Carolina, insurance companies can use credit scores as one of the risk factors during underwriting.

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