Lake Norman Charlotte NC Home Owners Insurance

Homeowners Insurance Guide - North Carolina

Basic Coverage

North Carolina law does not require homeowners to insure their dwelling, but if you have a mortgage, your lender will most likely require you to purchase at least a basic policy. A standard North Carolina home insurance policy will contain two sections with different types of coverages. Section I includes property coverages (A, B, C, and D), while Section II includes liability coverages (E and F). We've described each of these coverages briefly below.

• Coverage A (dwelling) - protects the actual structure of the home and any fixtures included within it (e.g., plumbing, air conditioning, heating, etc.). You should insure your dwelling for at least 80% of its replacement cost.
• Coverage B (other structures) - protects other structures on your property that may or may not be attached to the home, such as garages and sheds. The coverage limit for other structures is usually limited to 10% of the limit for Coverage A.
• Coverage C (personal property) - protects the belongings you and the members of your household store in your home. Coverage C is typically limited to 50% of Coverage A.
• Coverage D (loss of use) - pays for your living expenses while your home is being replaced or repaired after suffering a covered loss. Examples of covered living expenses might include the cost of a hotel and meals.
• Coverage E (personal liability) - provides protection if you or a member of your household are found legally responsible for injuring another person. Coverage E will pay for your legal defense and cover the cost of damages.
• Coverage F (medical payments) - pays for the medical costs of anyone injured accidentally on your property. This coverage applies only to people who do not live in your household.

High-Risk Locations

The state of North Carolina offers alternative coverage options to homeowners who live in high-risk areas and may not qualify for traditional home insurance coverage. For example, if your home is near a beach, it is more likely to suffer wind and storm damage, which makes it a high-risk location. If you live in a high-risk area, you may qualify for the North Carolina Joint Underwriting Association (NCJUA) FAIR plan. The FAIR (Fair Access to Insurance Requirements) plan pools the high risk of certain homeowners among many different property insurers. Any homeowner or renter can apply for a FAIR plan by contacting the North Carolina Department of Insurance.

How does NC Compare?

In 2006, NC ranked 41st for home insurance premiums. The average premium in North Carolina is approximately $650.

These low insurance rates means finding quality coverage is relatively easy for NC residents. House insurance protects your home against fires, burglaries, wind damage, and the occassional severe weather, particularly hurricanes on the coast. Choose a well-rounded homeowners policy to safeguardyour home investment.