North Carolina Home Insurance

Home owners insurance is a type of personal package policy that combines property and casualty coverages in the same policy. It protects your home and personal belongings from various perils, such as fire, windstorm, hail and theft. It also covers injuries that occur on your property and lawsuits against you.

In North Carolina, there is no law that requires homeowners to purchase insurance on their home. However, if you have a mortgage on your property, the lender will likely require that you have insurance. If you are a renter, your landlord may suggest that you buy insurance to cover your personal property.

The cost of homeowners insurance in North Carolina depends on many factors, such as the location, size, age and condition of your home, the amount and type of coverage you choose, the deductible you select, and your credit history and claims history. According to the National Association of Insurance Commissioners, the average annual premium for homeowners insurance in North Carolina was $1,086 in 2018, which was lower than the national average of $1,211.

Homeowners insurance policies in North Carolina typically have two sections: Section I provides property coverages (A, B, C and D) and Section II provides liability coverages (E and F). Here is a brief overview of each coverage:

- Coverage A: Dwelling. This covers the main structure of your home and any attached structures, such as a garage or a deck. It also covers built-in appliances, plumbing, heating and electrical systems. The amount of coverage should be enough to rebuild your home in case of a total loss.

- Coverage B: Other Structures. This covers any detached structures on your property, such as a fence, a shed or a gazebo. The amount of coverage is usually 10% of Coverage A, but you can increase it if needed.

- Coverage C: Personal Property. This covers your personal belongings inside or outside your home, such as furniture, clothing, electronics and jewelry. The amount of coverage is usually 50% of Coverage A, but you can increase it if needed. Some items may have special limits or exclusions, such as cash, firearms or collectibles. You may need to buy additional coverage or endorsements for these items.

- Coverage D: Loss of Use. This covers your additional living expenses if you have to temporarily move out of your home due to a covered loss. For example, it can pay for hotel bills, restaurant meals and storage fees. The amount of coverage is usually 20% of Coverage A.

- Coverage E: Personal Liability. This covers your legal responsibility if you or a member of your household cause bodily injury or property damage to someone else. It also covers your defense costs if you are sued for a covered claim. The amount of coverage is usually $100,000 per occurrence, but you can increase it if needed.

- Coverage F: Medical Payments to Others. This covers the medical expenses of someone who is injured on your property or by your activities, regardless of who is at fault. It does not cover injuries to you or members of your household. The amount of coverage is usually $1,000 per person.

Homeowners insurance policies in North Carolina may not cover some perils, such as floods, earthquakes, mudslides or landslides. In some cases, your policy may also exclude windstorm or hail coverage. You may need to buy separate policies or endorsements for these perils.

Homeowners insurance is an important way to protect your home and financial security. You should shop around for the best coverage and price that suit your needs. You should also review your policy periodically and update it if there are any changes in your situation.

Sources:

: https://allchoiceinsurance.com/home-insurance-agency/

: https://www.ncdoi.gov/consumers/homeowners-insurance

: https://content.naic.org/article/news_release_naic_releases_20182019_auto_and_homeowners_insurance_reports.htm