How to Protect Your North Carolina Home

In 2006, the Insurance Information Institute reported that North Carolina ranked 41st in the country for home insurance premiums. The average premium in North Carolina is about $650. With such affordable rates, finding quality, affordable protection is relatively easy for North Carolina residents. Purchasing a policy is important in order to shelters your house against perils like fires, burglaries, wind damage, and more. And, although the state's climate is generally appealing, the state also sees its share of severe weather, particularly hurricanes. By choosing a well-rounded policy, you can safeguard the investment in your dwelling from these common perils. Read on for more information to guide your buying decisions.

What is Included?

State law does not require residents 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 plan will contain two sections with different types of protection. 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.

High-Risk Locations

The state offers alternative coverage options to residents who live in high-risk areas and may not qualify for traditional home insurance coverage. For example, if your house 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 residents among many different property insurers. Any homeowner or renter can apply for a FAIR plan by contacting the North Carolina Department of Insurance.