Raleigh, the bustling state capital of North Carolina, is home to many museums, restaurants, and other attractions. It’s also the second-most-populated city in North Carolina.

Homeowners in Raleigh pay an average of $2,264 for a $300,000 home insurance policy with a $1,000 deductible — slightly higher than the state average of $2,110.

If you’re considering buying a home in Raleigh, understanding the market and the cost of home insurance is important. While Raleigh is inland enough that strong hurricanes rarely affect it, the city is prone to tropical storms.

Here’s what you should know about comparing home insurance quotes and finding affordable coverage in Raleigh.

Best home insurance companies in Raleigh

Fortunately, you’ve got many options for a homeowners insurance policy in Raleigh, as several insurance companies serve the area. The best homeowners insurance for you won’t necessarily be the cheapest, so keep that in mind as you compare quotes.

Cheapest rates: State Farm

Best insurer for bundling: Encompass

Best insurer for local advocacy: North Carolina Farm Bureau

North Carolina Farm Bureau has been supporting farmers and the local community since its founding in 1953. Not only does this insurance company offer multiple coverages and relatively affordable rates, but its many advocacy programs help farmers and other rural residents.

If you’re interested in purchasing insurance from a company that gives back to the broader state, North Carolina Farm Bureau could be a good option. It offers homeowners insurance, auto insurance, renters insurance, and many other insurance products designed to protect its policyholders.

Best insurer for discounts: Travelers

Cheapest home insurance in Raleigh

State Farm offers the cheapest home insurance for Raleigh homeowners, with average annual homeowners insurance policies of $764 per year. 

Below are some of the cheapest home insurance companies in Raleigh and their average rates.

Cost of homeowners insurance in Raleigh

The average cost of home insurance in Raleigh is $2,264 annually for a policy with $300,000 in dwelling coverage and a $1,000 deductible. But many factors affect your insurance rates. Insurance companies consider your home’s age, exact location, security and structural features, your past claims, your chosen deductible and coverage needs, and your credit history when calculating your premiums.1

Different insurance companies also offer different rates, which is why it’s essential to shop around for coverage if you’re a Raleigh homeowner.

Cost of homeowners insurance by dwelling coverage amount

A higher amount of homeowners insurance coverage comes with a higher price tag, which makes sense because you’re getting more protection. In general, your dwelling coverage, which protects your home’s structure in the event of a natural disaster or other incident, should equal your home’s replacement value.

Here’s a look at how dwelling coverage limits could affect your premiums in the state of North Carolina. Rates shown are for policies with a $1,000 deductible.

Cost of homeowners insurance by deductible

In general, your rates will be lower if you opt for a higher home insurance deductible, or the amount you’ll pay out of pocket before your insurer pays out. This is typically true whether you live in Raleigh or any other location in the U.S. While a higher deductible could lower your home insurance rates, be sure you can afford the deductible you choose in case you need to file a claim. 

Here’s how deductible amounts affect the average cost of homeowners insurance for policies with $300,000 in dwelling coverage in Raleigh.

How to get cheap homeowners insurance in Raleigh

While home insurance might be slightly more expensive in Raleigh compared to the rest of North Carolina, it’s still possible to find relatively cheap coverage. Here are a few strategies that could help you save on a homeowners policy if you live in the North Carolina state capital:2

• Shop around. Insurance rates aren’t standard across companies, which is why it’s essential to get multiple home insurance quotes. You might find that one insurance company offers much cheaper rates than another for similar coverage.

• Install home safety features. Many insurers will reduce your homeowners insurance premiums if you install certain safety and security features. It’s common to get discounts for adding smoke detectors, burglar alarms, sprinkler systems, and more. Some home safety features are relatively cheap and could save you money on your home insurance in the long term.

• Ask about discounts. While certain insurance companies may be forthcoming with discounts, others may not. Do your due diligence and ask which discounts are applicable to you. Taking advantage of available discounts might reduce your premiums by a fairly significant amount.

North Carolina homeowners insurance rates by city

Raleigh has fairly high rates, on average, compared to many other North Carolina cities. Things like local population, crime rates, and proximity to public services can affect premiums, so rates may also vary within different ZIP codes in the same city. People in coastal North Carolina might also pay higher homeowners insurance rates, as hurricanes are more likely to make landfall along the coast.

Here’s a look at how average insurance premiums vary across cities in North Carolina for policies with $300,000 in dwelling coverage.

How much homeowners insurance do you need in Raleigh?

Chances are if you’re buying a home in Raleigh, you’re probably taking out a mortgage. If that’s the case, your mortgage lender will require you to get homeowners insurance as a condition of your loan. This ensures your home (and its collateral) has protection in case something damages or destroys it.

In general, your dwelling coverage should be enough to replace your home if a fire or another covered incident destroys it. You’ll also want personal property coverage to replace your personal items if there is damage or theft. The amount of coverage you need depends on your individual situation. For example, if you have several expensive personal belongings and have concerns about theft, you might opt for more coverage.

But no matter how much coverage you get, it’s essential to understand what your home insurance policy covers and any potential exclusions. Reading over your policy will offer insight into how it protects your most valuable investment.

What are some of the biggest risks when owning a home in Raleigh?

Approximately 18 hurricanes and tropical storms have affected North Carolina in the last 20 years.3 Hurricanes rarely affect Raleigh because it’s far enough inland. But the city isn’t immune to all risks, so homebuyers should be aware of potential issues.

Here are a few common perils that could affect your home in Raleigh: