North Carolina home insurance premiums differ by $1,223
By: Ajay kumar Medagani July, 08, 2019
According to North Carolina census data, property owners incur an average $984 per annum as home insurance premiums. A Gavop analysis finds that the difference between the least and most expensive insurance premiums in North Carolina is as much as $1,223.
While compared to the neighboring states of South Carolina, Virginia, and Tennessee, homeowners in North Carolina pay insurance premiums that are lower than the national average. Despite this, residents face many challenges throughout the year. Frozen pipes, snow, and ice dams are common during harsh winters and hail and thunderstorms are often observed during the hot summers. North Carolina also faces the threat of hurricanes. The constant threat of a stormy weather has caused insurance premium rates to drastically increase.
Robbinsville records the lowest insurance premium rate of $678 per annum, while Whiteville reports the highest rate at $1,699.
The following graph shows the average premium rates for some of the largest cities in North Carolina.
The home insurance premiums in these cities are much lower than the state average because of various factors such as a lower crime rate, better weather conditions, and efficient fire and safety departments.
North Carolina is one of the 19 states with a hurricane deductible, which has become common practice among home insurance companies since a home becomes a risk factor during a hurricane.
The rate of hurricane deductibles generally varies between 1% and 5%, which a homeowner must pay while filing a claim. Considering the risk factor, firms also include a windstorm deductible. Similar to the case of hurricane deductibles, homeowner must pay a windstorm deductible in the case of property damage during a storm and the remaining amount is incurred by the insurance firm.
State farm is the largest home insurance provider in North Carolina, with a market share of 18.2%, and offers a home insurance premium of $893. Amica provides the cheapest home insurance in North Carolina with an average insurance premium of $782.
The following graph shows the most expensive ZIP codes in North Carolina in terms of policies with a dwelling coverage of $200,000 at a deductible rate of $1,000 and a liability coverage of $100,000.
The above-mentioned four ZIP codes, namely Bogue, Caswell beach, Atlantic beach and Harkers Island have some of the most expensive and prime coastal real estate properties but face the added risk of being located near the ocean. In other words, the homeowner must pay a higher home insurance premium.
Husk, Creton, Traphil, and Ennice report the lowest insurance premiums.
The above mentioned four ZIP codes are located inland and thus, they are less vulnerable to hurricanes and floods. The significantly lower risk factor is reflected in the lower home insurance premiums.
Homeowners in North Carolina can lower their home insurance premiums by bundling their home and car insurance and save as much as $92. They can save an additional $107 by installing security systems on their property. Insurance firms also provide a discount of $122 for senior citizens.
ABOUT THE AUTHOR
Ajay Kumar Medagani
Ajay Kumar works as a data analyst with Gavop. A (software) engineer by profession, he utilizes his well-established programming skills in big data, to derive insights from a wide variety of data sets. A engineering graduate from JNTU his passion involves analyzing raw data, infographics and other visual aids for research.
