North Carolina Homeowners Pay Some of the Lowest Insurance Costs In The Country, But Hike Is In The Works

North Carolina homeowners pay some of the lowest average insurance premiums in the Southeast, even though the state has significant coastal exposure to hurricanes and flooding.

While national costs are rising sharply, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that North Carolina households remain relatively insulated from the steepest increases.

But that has already started to change as local officials have made strides to police increases, but encourage them all the same.

North Carolina’s Insurance Costs Stay Affordable

According to the American Community Survey (ACS) data from the U.S. Census Bureau , North Carolina homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average the same $1,000–$1,499. Overall statewide costs also fall into the $1,000–$1,499 range.

North Carolina has 3,138,607 insured homeowner households in total—1,870,321 with a mortgage and 1,268,286 without. Among mortgaged owners, 144,552 pay less than $100 annually and 101,777 pay $4,000 or more. Among those without a mortgage, 236,523 pay less than $100 and 54,013 pay $4,000 or more.

Compared with nearby states, North Carolina is among the more affordable. South Carolina homeowners also average $1,000–$1,499 regardless of mortgage status. Georgia trends slightly higher, with mortgaged households paying $1,500–$1,999. Virginia averages $1,000–$1,499, while Florida homeowners face much higher costs, averaging $2,000–$2,499 with a mortgage. This makes North Carolina one of the more affordable states in the Southeast, despite its Atlantic coastline.

Climate Risks Across the Region

Despite today’s lower premiums, climate exposure looms large. The 2025 Realtor.com Climate Risk Report shows that North Carolina homes face severe hurricane wind threats, joining markets like Miami, Houston, New York, and Tampa at the top of the national rankings.

Wind risk is particularly costly: under a standard HO-3 policy, a $400,000 home with a 5% hurricane deductible leaves the homeowner on the hook for $20,000 before insurance coverage begins.

Flood risks are another concern. While New York and Florida dominate in total value at risk, coastal North Carolina markets like Wilmington and the Outer Banks face increasing vulnerability.

Given this, North Carolina homeowners will see a 15% increase in insurance rates spread over two years following a settlement between Insurance Commissioner Mike Causey and insurance companies. Rates rose by 7.5% on June 1, 2025, and will again by another 7.5% on June 1, 2026, with no area facing more than a 35% increase, according to NC Newsline.

This agreement is significantly lower than the 42.2% average hike initially requested by the N.C. Rate Bureau, which had proposed increases as high as 99.4% in some coastal counties, citing higher costs from climate change and rising reinsurance expenses. Instead, homeowners in coastal counties such as Brunswick, Carteret, New Hanover, Onslow, and Pender will see a total increase of 31.9% over two years, split into 16% in 2025 and 15.9% in 2026. Causey emphasized that the deal will save homeowners approximately $777 million over the next two years while still ensuring insurers maintain adequate reserves to cover disaster-related claims. Additionally, the settlement prevents insurers from seeking further increases before June 1, 2027.

Nationwide, about 6 million homes worth $3.4 trillion could see severe flooding over the next 30 years, and metros in the Carolinas rank among the most exposed.

“Understanding climate risk in the housing market is essential, as these challenges not only affect residential safety but also influence property values, insurance costs, and overall market stability,” said Jiayi Xu, economist at Realtor.com.

A National Affordability Challenge

Even though North Carolina homeowners currently pay modest premiums, affordability remains a growing concern nationwide. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges renewing or obtaining coverage.

These pressures are already influencing how buyers shop for homes. Nearly 30% of buyers said they had completely changed their search areas because of insurance challenges, while another quarter said they had overhauled their strategies altogether. Even more striking, 58% of homeowners nationwide said they would consider dropping coverage if premiums rose too high, with younger buyers most likely to do so.

For now, North Carolina’s relatively low statewide averages provide some relief compared with national hot spots like Florida. But with climate risks mounting along the Atlantic, the state’s affordability advantage may be tested in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.