Data Deep Dive: Homeowners Insurance in North Carolina

Written by  Michelle Lambright Black

Edited by  Jamie Cattanach

+ 1 More

Published Aug 05, 2025 Content was accurate at the time of publication.

Homeowners insurance rates in North Carolina have risen dramatically since 2020 — especially in certain areas.

In 2025, Wilmington and Jacksonville top the list of North Carolina’s biggest municipalities with the highest home insurance costs, (no) thanks in large part to high natural disaster exposure. Statewide, average homeowners insurance rates climbed 44.4% cumulatively between 2020 and mid-April 2025, with the steepest annual jump (12.3%) in 2022.

These rising costs underscore a growing pressure on North Carolina homeowners, particularly those residing in coastal and disaster-prone areas. Below is a breakdown of where North Carolina home insurance prices are highest, what’s driving the rate increases and expert tips you can use to lower your insurance premiums.

Key findings

Home insurance rates in North Carolina have risen significantly

Just as home insurance rates have been on the rise throughout the U.S., North Carolina homeowners have experienced a 44.4% cumulative jump in average insurance premiums since 2020. 2022 marks the steepest annual rate increase in this period at 12.3%, and 2025 rates are already up 4.8% through April 10 (the latest available date at the time of research).

There are numerous causes for the rate hikes in North Carolina, with the two primary culprits being inflation and a steady increase in severe weather events. Rob Bhatt, LendingTree home insurance expert and a licensed agent, notes that in the aftermath of 2024’s Hurricane Helene, many North Carolina residents have likely already experienced insurance rate increases. Unfortunately, those same homeowners may expect another premium hike next year.

Following Hurricane Helene, North Carolina insurers paid out over $1.8 billion in covered losses. Among those claims, about 91,000 were for residential property losses totaling more than $938 million. Insurance companies also paid another 7,628 commercial property claims resulting from the natural disaster, totaling another $287 million in losses.

While insurance rates have been increasing steadily throughout the Tar Heel State, beach and coastal homeowners pay significantly higher premiums than their inland neighbors. (Plus, many homeowners also need to carry flood insurance.) This chart illustrates the average cost of home insurance by property location in North Carolina.

Average cost of home insurance by land area in North Carolina

Wilmington, Jacksonville pay most for home insurance

Wilmington residents pay an average of $7,161 annually for home insurance — more than triple the $2,374 average insurance rate among North Carolina’s 25 largest municipalities. Jacksonville follows at $6,330, with Greenville ($3,165), Fayetteville ($2,985) and Rocky Mount ($2,539) rounding out the top five at rapidly decreasing rates.

Coastal location and disaster risk clearly matter when it comes to insurance rates — but we’ll explore those details in the following sections.

As you can see in the map, the five North Carolina municipalities that pay the least for home insurance are inland — specifically in the mountain, Triad and Piedmont regions. 

Additionally, homeowners in two of the state’s largest cities — Raleigh ($2,202) and Charlotte ($2,037) — pay insurance rates below the 25-municipality average.

Full rankings: Average cost of home insurance in North Carolina’s largest municipalities

Progressive rates more than double since 2020

Progressive insurance premiums skyrocketed in North Carolina by 109.1% cumulatively between 2020 and mid-April 2025. This increase represented a rate hike of more than twice the overall state increase (44.4% during the same time frame). However, other insurers also raised rates significantly, including Erie (97.8%), Auto-Owners (93.5%), Travelers (73.4%) and Allstate (63.2%). 

Conversely, there were several insurers whose rates remained much more stable. The North Carolina insurance companies with the smallest rate increases between 2020 and 2025 were:

Home insurance rate increases in North Carolina by insurer

These findings underscore the importance of regularly shopping for home insurance quotes to make sure you find (and keep) your best deal available.

“Most companies say they have cheap rates, but it’s rare for one company to have cheap rates for every type of customer,” Bhatt says. “Comparing quotes from a few or more different companies helps you find the company with the cheapest rate for your situation. It takes a little bit of time, but the savings can be substantial.”

Most companies say they have cheap rates, but it’s rare for one company to have cheap rates for every type of customer.

Rob Bhatt

LendingTree home insurance expert and licensed agent

Natural disaster risks highest in Wilmington, Jacksonville

New Hanover County (Wilmington) and Onslow County (Jacksonville) topped North Carolina with 12 FEMA disaster declarations each from 2015 to 2025. Their natural disaster risk scores (98.50 and 97.93, respectively, also based on the county in which the municipality is located) are the highest in the state. 

These details likely had a significant impact on the elevated insurance rates in these areas. By contrast, locations with lower disaster risk scores (e.g., Hickory, Chapel Hill) tend to have lower home insurance costs.

From 2020 to 2024, there were 37 billion-dollar natural disasters in North Carolina. Some of the biggest natural disaster declarations (by cost) to occur during this period include: 

With the frequent occurrence of climate-related hazards, many homeowners worry about how these events may affect their property values and insurance prices. Later, you’ll find tips on reducing insurance rates and protecting your home in high-risk areas.

Full rankings: North Carolina municipalities most at risk of natural disasters

Wilson has highest rate of uninsured homes

Wilson (18.0%) and Rocky Mount (17.3%) lead the 25 biggest municipalities in uninsured home rates. Both are well above the statewide average of 13.2%. Meanwhile, Mooresville, Holly Springs and Wilmington — three North Carolina municipalities often considered to be wealthier areas — have the lowest uninsured rates (all under 7.0%).

Unfortunately, being uninsured means significant financial risk for homeowners. Not only do you risk losing safe housing for yourself and your family, but you could also lose a valuable investment.

“Very few people can afford to rebuild their home if it burns down,” says Bhatt, “or even repairs if it’s just partially damaged by something like a kitchen fire or windstorm.” Underinsured homeowners may be forced to sell their properties at a reduced rate to account for unfinished repairs, he explains.

“Homeowners insurance gives you the money to rebuild without having to raid your retirement savings or take out a loan,” Bhatt says — protecting not only your home, but also your finances.

Full rankings: Percentage of uninsured homes in North Carolina’s largest municipalities

Lowering rates as a North Carolina homeowner: Expert tips

Home insurance rates may be rising, but finding the best homeowners insurance policy in North Carolina is still possible if you know where to start. Whether you live in a coastal community with higher natural disaster risk or further inland, there are proven ways to save on coverage without sacrificing the coverage options you need.

Methodology

LendingTree researchers first utilized the U.S. Census Bureau 2023 American Community Survey (ACS) with five-year estimates to determine the 25 biggest municipalities (by population) in North Carolina. 

We then analyzed Quadrant Information Services home insurance data (pulled in June 2025) from those same municipalities. The insurance rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your quotes will likely differ. The following coverages and deductibles were used unless otherwise noted:

Home insurance rate change data from 2020 through April 10, 2025, was compiled via S&P Global’s RateWatch, which utilizes annual information from the National Association of Insurance Commissioners (NAIC).

Disaster declaration data (pulled on June 30) was gathered from the Federal Emergency Management Agency (FEMA). Additionally, FEMA’s National Risk Index data was utilized to find the municipalities’ natural disaster risk scores and risk ratings, using their counties as proxies.

Researchers also analyzed the Census Bureau 2023 ACS with five-year estimates to calculate the percentage of homes without insurance. Owner-occupied homes with annual home insurance costs of less than $100 were classified as uninsured. The number of owner-occupied homes that paid less than $100 in annual home insurance costs in 2023 was divided by the total number of owner-occupied homes.

Researchers also analyzed North Carolina Department of Insurance (DOI) 2024 data to find the average annual home insurance rate for coastal, beach and inland homes. A weighted average was calculated by multiplying the average premium by area type by the written house-years for consent-to-rate and non-consent-to-rate policies, and then dividing that by the total written house-years for the selected area type. We also utilized the DOI for Hurricane Helene claims data.