North Carolina Home Insurance Costs Surge Nearly 47% Since 2020

A new analysis from LendingTree reveals that North Carolina homeowners are facing significantly higher insurance costs, with premiums climbing nearly 47% since 2020. The state's average annual premium has reached $2,566, surpassing the national average by approximately 7.1%. This trend highlights the ongoing pressure on the property insurance sector as carriers adjust rates to account for severe weather risks, inflation, and rising reconstruction expenses.

According to LendingTree’s 2026 State of Home Insurance Report, North Carolina’s average homeowners insurance premium has risen to $2,566 per year. This figure represents a 6.2% increase in 2025 alone and contributes to a cumulative rise of nearly 47% over the last five years. While North Carolina is not currently ranked among the most expensive states for coverage, its costs are trending upward as insurers respond to a combination of severe weather events and the heightened cost of labor and materials required for rebuilding.

The report highlights a significant regulatory backdrop, noting a settlement reached last year between state officials and the North Carolina Rate Bureau. The agreement allows for an average statewide base rate increase of approximately 15% spread across 2025 and 2026. This compromise was reached after the Rate Bureau initially requested a much steeper average increase of more than 42%, illustrating the ongoing tension between industry solvency needs and consumer affordability.

On a broader scale, the LendingTree analysis indicates that while the pace of premium hikes has slowed in some regions, the national property insurance market remains volatile. Affordability has become a critical issue, with the report estimating that more than 12 million homeowners across the United States opted to go without insurance in 2024. For the property insurance sector, these findings underscore the challenge of maintaining sustainable risk pricing while preventing a growing segment of the population from becoming underinsured or entirely uninsured.