North Carolina Hurricane Insurance: What to Know

North Carolina experiences severe weather. Statistically, a major storm makes direct landfall in the state roughly every other year.1 As seen recently with Hurricane Helene, the destruction from these storms can be wide-ranging and tragic.

Hurricane insurance isn’t a separate policy that you purchase. Instead, homeowners can purchase flood insurance and windstorm coverage to cover their homes in the event of a hurricane. For homeowners in hurricane-prone areas, it may make sense to buy additional coverage.

Here’s what you should know about how hurricane insurance works, how much it costs, and the details to consider before purchasing a policy.

What is hurricane insurance?

Hurricane insurance isn’t a stand-alone policy that you buy separately. Instead, hurricane insurance combines windstorm and flood insurance policies, which together cover damage to your home’s structure after a hurricane.

Many homeowners purchase flood insurance as an add-on policy to cover water damage after a storm. Standard homeowners insurance policies don’t include flood insurance, but you can purchase it through the Federal Emergency Management Agency’s National Flood Insurance Program.3

Some insurance companies may exclude windstorm coverage from home insurance policies, given the state’s hurricane-prone climate. If so, you may be able to purchase a separate windstorm policy through the North Carolina Insurance Underwriting Association (NCIUA).4

Separate windstorm policies through the NCIUA come with separate deductibles. “Named storms” — or storms officially named by the National Hurricane Center — trigger these deductibles.

What hurricane insurance covers in North Carolina

In the event of a hurricane in North Carolina, your policy’s hurricane insurance can pay to repair the following types of damage:

What hurricane insurance doesn’t cover

Hurricane insurance excludes certain types of damage. Always read your policy closely to better understand what it does and doesn’t cover.

In many cases, hurricane insurance doesn’t cover the following types of damage:

• Sewer backup: A clogged sewer can lead to widespread damage to your floors, walls, electrical systems, and more. Unfortunately, hurricane insurance won’t cover a sewer backup. You usually have to buy sewer backup coverage as a separate add-on to your standard homeowners insurance policy.

• Downed trees: If a tree falls in your yard but doesn’t hit any insured structures, like your home or a shed, your insurance company won’t pay for the removal process.

If you’re looking for coverage for these perils, you may be able to purchase additional coverage. Talk to your insurance company about potential policy add-ons.

Hurricane deductibles explained

Your deductible is the amount you pay out of pocket for a loss before your insurance kicks in. Deductibles are typically a flat-dollar amount, such as $500. But given the high costs that come with hurricane damage, many states — including North Carolina — have started using a separate deductible that only applies to hurricane-related damage.7

Instead of a flat-dollar amount, hurricane deductibles are a percentage of your overall coverage. For example, if you’ve purchased $300,000 in dwelling coverage and your hurricane deductible is 2%, you’ll pay $6,000 out of pocket before your insurance coverage kicks in. Generally, setting a higher deductible will lead to lower monthly premiums.

Hurricane insurance cost in North Carolina

Your home’s size, age, and location play a major role in your hurricane insurance prices. For instance, houses closer to the coast may be at greater risk for damage from a storm surge. Insurance companies charge higher premiums to account for this risk.

On average, a North Carolina homeowner with $300,000 in dwelling coverage and a $1,000 deductible pays $3,502 per year for a standard home insurance policy. Your standard home insurance may exclude windstorm coverage if you live in certain parts of North Carolina, which may affect your insurance costs.

You’ll also have to factor in the cost of flood insurance, which is essential for many North Carolina property owners. According to the FEMA flood insurance website, North Carolina homeowners pay $780 per year for flood insurance.

Added together, North Carolina homeowners pay an average of $4,288 per year for hurricane insurance. Your rates vary based on many factors — including your area’s loss history and the likelihood of a hurricane making landfall in your area.

Cost of home insurance in North Carolina

North Carolina residents pay $3,444 for a policy with $300,000 dwelling coverage, much higher than the national average of $2,532 with the same coverage, according to Insurify data.

The table below shows the cheapest annual average rates from various insurance companies.

Other home insurance coverages you may need in case of hurricanes

A standard homeowners insurance policy might not be enough to protect yourself financially in the event of a hurricane. North Carolina residents might want to consider the following coverages for some added protection:

• Sewer backup: You’re responsible for repairs to the pipe running from your city’s sanitation system to your home. Unfortunately, insurers don’t cover damage to this pipe in standard policies. Purchasing a sewer backup add-on to your policy can come in handy in North Carolina.

• Personal property endorsement: Take inventory of your personal possessions. If you own expensive jewelry or furniture that a hurricane could damage in a hurricane, you might want to consider an “endorsement,” or “floater,” that helps you insure these valuable items separately.

North Carolina hurricane insurance FAQs