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North Carolina may be the state you decide to choose to purchase a home in to bolster your real estate holdings. As an investor, one of your strongest abilities needs to be risk management.
When you consider the unknown variables, it becomes pretty clear that there are some occurrences such as flooding, theft, etc., that could be very concerning and make unfortunate work of what was a good investment.
With that said, homeowners insurance companies have the perfect solution to the problem in the form of the policies that they offer.
Our job here is to ensure that you're acquainted with the mindset you should have as you choose one. What kinds of considerations should be on your mind and which insurance companies should you be looking at? All this and more is below for your convenience.
Understanding North Carolina Homeowners Insurance
While having North Carolina home insurance is a great start, it's not the kind of thing that you should just throw some money at and forget. You want to understand the coverage that you're going to need, and the extent to which whatever company you choose to work with can support you adequately.
Remember this home insurance company is what you will be depending on when a crisis strikes, and by the time that happens, it's way too late to start getting things right.
Average Home Insurance Costs in North Carolina
What should you be looking to pay for homeowners insurance in North Carolina? There are a few factors that will determine that, with the location being one of the key ones. This stands to reason considering that will be a good indicator of the specific hazards that you will face.
The average stands at about $1,294, which is below the current national average. Remember what was just said about the locations? Well, if your property is in the coastal region, you'll likely find that your premium is greater than that of your inland counterparts.
This stands to reason considering that you are at greater risk for damage from occurrences such as windstorms and hurricanes.
Other factors that can go into the premium you pay include your roof and home condition, security systems put in place, your claims history, and more!
Don't be afraid to ask about discounts too, which can often stack and help you to reduce what you'll need to pay. The representative you speak to is meant to be your window into the company so take the time you need to ask the questions you want.
Homeowners Insurance Vs. Landlord Insurance
As you consider home insurance coverage options, you'll want to understand a couple of the relevant types at the top level, and this is where the conversation of landlord insurance vs. homeowners insurance becomes a very important one.
Homeowners insurance in North Carolina is meant to provide security for the home itself. This will include the structural integrity, alongside some level of coverage for personal property within the home. The insurance company's underwriting guidelines will tell you that there really aren't any business-related coverage elements at the standard level.
Landlord insurance, however, considers the business engagements that you will have with tenants and offers protection with that in mind. That means if you should encounter challenges such as lost rental income or damages resulting from tenant actions, you can claim for your losses.
Is homeowners insurance required by law in North Carolina? No. Similarly, you aren't required to get landlord insurance either as a rental property owner. Be that as it may, choosing not to do so will likely hurt you in the event of unfortunate occurrences.
Note that depending on the current state and use of a property, you may not always need an active landlord insurance company. For example, this can apply while the property is vacant, or if you plan to live in it for a while before it's rented. Discuss your intentions honestly with the insurance company and you'll get the guidance you need to select the suitable coverage options.
How to Choose a North Carolina Homeowners Insurance Company
Unique Needs a North Carolina Homeowners Insurance Policy Should Cover
The first thing you want to think about when selecting a North Carolina homeowners insurance provider is the kinds of unique coverage you'll need based on your location. Here are a few elements that you'll want to keep in mind.
Flood Insurance
This is especially true for homeowners in the coastal region or any flood-prone area. Mortgage lenders may actually require that you carry flood insurance in those cases, which is understandable. Again, don't think that because you're not on the coast, you have nothing to worry about.
Sure, flood insurance does not typically form a part of the standard package that an insurance company offers, so you'll almost always be dealing with an extra cost. However, consider the fact that you're securing your investment.
Insurance options here can be private or through the National Flood Insurance Program, which is a federal offering.
Earthquake Damage
An earthquake is a lot more likely if you're in western North Carolina. To be fair, only 22 have been seen up to this point, but no one needs to tell you how unpredictable seismic activity can be.
Your earthquake endorsement will often come with guaranteed replacement cost coverage and assist you with the repairs that are needed to your home and other structures on the property.
Windstorm and Hail Policy
Windstorm and hail coverage may or may not be excluded from the standard policy, depending on where in the state you're located. If it's excluded, you'll need to purchase that kind of coverage separately. Even if it's included, you'll sometimes find that it has a unique deductible.
Other Factors to Consider When Assessing Florida Home Insurance Companies
With the unique elements out of the way, you then need to turn your focus to some of the more general concerns, which apply regardless of where you are. These will include:
- The financial strength of the insurance company, which determines its ability to reliably honor claims
- What the company's reputation looks like, which you can ascertain from recommendations or reviewers
- The extent to which the kinds of standard and optional coverage options you will need are offered
- How much the insurance policy will cost (look into different companies to try to ascertain the best value)
- How efficient claims processing and how responsive the customer service team is
- The terms and conditions that come with the coverage you want and the extent to which you approve of them
It's not hard to see that there is quite a bit to consider here, but if this is what protecting your investment means, then doing it shouldn't be much of a problem for you.
Best Home Insurance Companies in North Carolina
The last piece of the puzzle is for us to talk about some of the top homeowners insurance companies in North Carolina!
1) Progressive
Progressive has been offering insurance coverage of various types since 1937. It's one of the reasons that it currently stands as one of the biggest names in the business in the USA. The company offers proprietary policies and others through its insurer network that will give you the coverage you need in different areas.
Coverage and Features
Under the standard insurance policy from Progressive, you can enjoy the following:
- Dwelling coverage
- Other structures
- Personal belongings
- Loss of use
- Personal liability coverage
- Medical payments
Additional coverage options will include fires, tornadoes, lightning, earthquakes, floods, and more!
Discounts
As far as discounts go, some of the notable ones are:
- Prepayment
- Multi-policy
- Email documentation
- New home purchase
- Safety features
2) Chubb
Chubb is next on the list and also has an extended history, having been around since 1882. Currently, the company operates in over 50 different countries and territories, thanks to its network of independent insurers.
You'd be dealing with a company that has an A++ AM rating, which is as high as it gets for financial strength, meaning that claims should not be affected by a lack of ability to honor them.
Coverage and Features
The coverage options included in Chubb's Masterpiece Homeowners Insurance Policy are:
- Fire
- Dwelling coverage
- Other structures
- Smoke
- Theft
- Vandalism
- Hail
- Wind
- Lightning
- Personal liability coverage
- Guest medical coverage
- Loss of use
Additionally, Chubb offers the following coverage options:
- Earthquake
- Flood
- Valuable articles
Note that every coverage option isn't available in every location, so you want to have an extensive talk with your agent to find out what may or may not be accessible to you.
Discounts
The discounts you can get from Chubb are:
- Multi-policy
- New or renovated home
- Claims free
- Backup generator
- Fire and security
3) Liberty Mutual
Liberty Mutual is next and comes in with a long history, having begun back in 1912. One of the desirable attributes of the company is the way it's known for making the insurance process quick and efficient. This partially comes from an intuitive website. However, there's also a host of educational resources that homeowners can lean on that use plain language to make the world of home insurance clearer.
Coverage and Features
A standard homeowners insurance policy from Liberty will offer:
- Dwelling coverage
- Other structures
- Personal property
- Guest medical coverage and liability protection
- Additional living expenses (ALE)
Additionally, you can access the following coverage options:
- Flood insurance
- Earthquake coverage
- Hurricane coverage
- Personal property
- Replacement cost for belongings
- Blanket jewelry coverage
- Umbrella coverage
- Inflation protection
- Water backup and sump pump overflow coverage
- Identity fraud expense coverage
Discounts
The discounts offered by Liberty Mutual include:
- Multi-policy
- Claims free
- Newly purchased home
- Safe homeowner
- Early shopper discount
- Insured to value discount
- New/renovated home
- Preferred payment
- New roof
- Paperless policy
4) Nationwide
Nationwide is next and has been doing business since 1926, when it was known as Bureau Mutual Automobile Insurance Co. Its competitive advantage comes from the fact that while the standard policy includes things you'd expect to see, some inclusions are out of the norm.
Coverage and Features
The standard coverage areas are:
- Dwelling coverage
- Other structures
- Personal property
- Personal liability
- Guest medical payments
- Ordinance or law insurance
- Loss of use
- Credit card insurance
Additional coverage options include:
- Earthquake insurance
- Flood insurance
- Brand new belongings
- Better roof replacement
- Identity theft
- Dwelling replacement cost
- Water backup
- Valuables plus
Discounts
You'll be able to access the following discounts as a nationwide customer:
- Multi-policy
- Gated community
- Protective devices
- Claims free
- Home renovation
- Roof rating
- New home purchase
- Prior insurance
- Smart home
5) Farmers
The final provider on the list is Farmers Insurance, which covers more than 10 million households across 19 million different policies. While not available in every state, North Carolina happens to be among the lucky areas of accessibility.
Coverage and Features
A standard liability policy will allow you access to the following:
- Dwelling coverage
- Other structures
- Additional living expenses (ALE)
- Personal property
- Liability coverage
- Medical payments
Additional coverage is offered in the following areas:
- Flood insurance
- Earthquake coverage
- Personal articles floater
- Building ordinance or law coverage
- Contents replacement cost coverage
- Identity theft
- Umbrella coverage
Discounts
The discounts available are as follows:
- Multiline discount
- Claim free discount
- Electronic funds transfer
- Good payer discount
- Protective devices
- Green certifications
- Rent to own
Conclusion
The homeowners insurance equation in North Carolina comes with quite a lot that you need to think about to secure your property. While it can seem tedious, this isn't the time to shortchange yourself as you'd only be making your own life harder in the long run.
Remember the areas of consideration above and use them as you evaluate the insurance companies you're interested in.
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