North Carolina Homeowners Insurance

Last Updated on September 29, 2020 by Andrew Lee

In the State of North Carolina, residents enjoy a wide array of various activities all year round. Boasting of pristine, beautiful beaches stretching out to 300 miles, picturesque mountain scenes, and jaw-dropping forests, NC really is a haven for the adventurer. There is no need to wonder why 66 percent of the homes in the state, according to Livability, is owned.

And because of the state’s booming housing market, it only follows that the North Carolina homeowners insurance industry also has quite the number of policyholders. Knowing more about how this very important type of insurance works will help you make certain you get the best, most suitable coverage for you, your loved ones, and your investments.

Average premiums paid by NC homeowners

Having an idea on how much consumers in the state pay towards their insurance policy will provide you with the opportunity to perform a comparison. This is extremely important, since you want to make certain you have a great insurance policy while not overpaying.

Homeowners paid an average of $1,008 of insurance premiums yearly

You should also know that financial resource group ValuePenguin puts the monthly average premiums in the state at $74.59.

Getting it right off the bat

Knowing how much and how many claims North Carolina homeowners insurance companies pay on average is important, as this will give you peace of mind knowing that, in the event something happens, you can rely on your insurer.

According to the guide published by the North Carolina Department of Insurance, one of the primary reasons consumers value homeowners insurance is because it protects for their home; the largest, most expensive investment they’ve ever made. It provides coverage for many different types of perils that they don’t have control of, such as house fires. Note though, that most forms also have their limitations, which means separately getting protection for floods, earthquakes, landslides, and mudslides.

Whether you’re a first time or a veteran home buyer, it’s important you understand how this type of insurance works, even if it’s just at the most basic level. Learning about the key facts and market trends is one way for you to have a better grasp on it; providing you with a way to make certain your policy meets your personal preferences and requirements.

Your options when it comes to insurers

You basically have two options when it comes to choosing an insurance company: either go with a local or a licensed, foreign one.

In another study from the NAIC, it revealed that total number of insurance service providers in the State of North Carolina is 1,491. 78 of these are domestic companies, while the rest of the 1,413 are foreign insurers.

Average of paid claims in the state

Knowing how much and how many claims North Carolina homeowners insurance companies pay on average is also important. This will give you peace of mind knowing that, in the event something happens, you can rely on your insurer.

To make things easier for you, the Insurance Research Council provided the following key figures related to the claims made and paid in NC over a period of 17 years from 1997 to 2013.

  • In 2013, the average payment insurance companies made for both non-catastrophic and catastrophic claims amounted to $327. In 2011, this number was up to $738, but primarily because it was the year wherein six-strong tornadoes hit the state.
  • Over the duration of the study, it was found that North Carolina insurers paid an average of $314 for every insured home. The most recent count for claims made for every 100 insured home reached 4.8.
  • The study concluded that the state has an extremely volatile frequency when it comes to insurance claims filed, mainly because of a key driver is the every-changing frequency of incidents classified as catastrophes.

The bottom line

From the statistics laid out above, you can already see just how big of a help having a North Carolina homeowners insurance policy is. Just as long as you make correct consumer-related decisions, you can expect the financial (and even legal) help you need from your insurance company.