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.
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.
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.