Homeowners in North Carolina are bracing for significant increases in insurance premiums, with the state set to experience some of the steepest hikes in the nation over the next two years.
Driven by a combination of rising natural disaster risks and insurance market pressures, these changes will impact residents across the state-especially those living along the coast. Here’s an in-depth look at the latest statistics, regional disparities, and what homeowners can expect through 2027.
Why Are Home Insurance Premiums Rising in North Carolina?
Several factors are contributing to the sharp rise in home insurance costs:
Increased Frequency of Natural Disasters: Hurricanes and tornadoes remain major threats, particularly in coastal regions, leading to higher claims and greater risk for insurers.
Insurance Market Adjustments: Insurers have pushed for rate hikes to remain financially viable amid escalating claim costs and reinsurance expenses.
Regulatory Settlements: After negotiations with the North Carolina Department of Insurance, a compromise was reached to moderate, but not eliminate, the proposed increases.
Latest Rate Increase Settlement and Regional Impact
A recent settlement between the North Carolina Department of Insurance and insurance companies will see a statewide base rate increase of 7.5% on June 1, 2025, and another 7.5% on June 1, 2026-a cumulative rise of 15.56% over two years. The impact will be most pronounced in coastal areas:
- Beach Counties (Brunswick, Carteret, New Hanover, Onslow, Pender): 16% increase in 2025 and 15.9% in 2026, totaling a 34.46% cumulative rise.
- Eastern Coastal Areas: 10.5% increase in 2025 and 10.1% in 2026, for a 21.66% total increase.
- Inland and Mountain Regions: 7.5% increases each year, matching the statewide average.
No further rate increase requests will be allowed until June 1, 2027, providing some stability after this adjustment period.
Current Premiums and City-by-City Breakdown
Home insurance costs in North Carolina already outpace the national average, especially in high-risk areas:
- Statewide Average: $2,050 to $3,383 per year, depending on coverage and credit rating.
- Coastal Cities: Wilmington stands out with an average annual premium of $7,210 to $17,727-among the highest in the country.
- Major Cities: Charlotte averages $1,939 to $2,550 per year, while Raleigh and Cary are around $2,189 to $2,540.
| City | Average Annual Premium |
|---|---|
| Wilmington | $7,210 – $17,727 |
| Charlotte | $1,939 – $2,550 |
| Raleigh | $2,193 – $2,540 |
| Cary | $2,189 – $2,540 |
| Greensboro | $1,766 – $2,410 |
Premiums can vary widely based on location, home value, and claims history. For example, a homeowner with two claims in five years could pay nearly $5,000 annually, compared to $3,383 for a claim-free record.
How North Carolina Compares Nationally
Despite these increases, North Carolina’s average premiums are still close to or slightly below neighboring states like Tennessee and South Carolina, but the gap is closing rapidly. The sharpest disparities are seen in coastal regions, where premiums are now among the highest in the country due to elevated hurricane risk.
Conclusion
North Carolina is entering a period of rapidly rising home insurance costs, with statewide premiums set to climb by over 15% by mid-2026 and coastal regions facing increases of up to 35%. For many homeowners-especially those along the coast-insurance affordability is becoming a pressing concern.
As the state navigates these changes, residents are encouraged to review their coverage, explore mitigation options, and stay informed about future regulatory developments. The coming years will test the resilience of North Carolina’s housing market and the ability of its residents to adapt to a new insurance landscape.
Source:
[1] https://farmonaut.com/usa/north-carolina-homeowners-insurance-rates-set-to-increase-what-coastal-residents-need-to-know-for-2025-2027/
[2] https://www.usnews.com/news/business/articles/2025-01-18/north-carolina-home-insurance-premium-base-rates-increasing-about-15-by-mid-2026
[3] https://www.ncdoi.gov/news/press-releases/2025/01/17/commissioner-causey-negotiates-settlement-rate-bureaus-homeowners-insurance-request
[4] https://www.moneygeek.com/insurance/homeowners/average-cost-home-insurance-north-carolina/
[5] https://www.bankrate.com/insurance/homeowners-insurance/north-carolina/
[6] https://www.nerdwallet.com/insurance/homeowners/north-carolina-home-insurance
[7] https://www.wunc.org/news/2025-01-24/homeowners-insurance-rate-north-carolina-increase-2025
[8] https://www.ncdoi.gov/press-release-terms/insurance-rates