Homeowners insurance in North Carolina and South Carolina has historically averaged around $1,600 a year, close to the national average, according to the most recent National Association of Insurance Commissioners (NAIC) state data, which covers 2022. Premiums have risen since then. In North Carolina, base rates went up an average of 7.5% in June 2025 and another 7.5% in June 2026, and the Charlotte area saw a little more than that. Your actual premium depends mostly on the home itself: its age, roof, size, location and the coverage you choose.
Two homes at the same price can have very different insurance costs, and that changes your monthly payment.
I'm Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. Here's what drives insurance costs in the Carolinas and how to plan for them before you make an offer.
Average Homeowners Insurance Costs in NC and SC
According to the NAIC data published by the Insurance Information Institute, the average HO-3 homeowners premium in 2022 was:
North Carolina: about $1,621 a year
South Carolina: about $1,571 a year
U.S. average: about $1,569 a year
These are statewide averages for standard owner-occupied homeowners policies. They include coastal homes, which usually cost much more, so inland Charlotte-area homes can come in differently. Use them as a starting point, not a quote.
How Much Have North Carolina Rates Gone Up?
In North Carolina, homeowners base rates are proposed by the North Carolina Rate Bureau and reviewed by the Department of Insurance. In 2024, the Rate Bureau requested an average increase of 42.2%. The settlement, reported by the Associated Press via WRAL, set an average increase of about 15% over two years:
June 1, 2025: about 7.5% on average statewide
June 1, 2026: about another 7.5% on average
Charlotte area: about 9.3% in 2025 and 9.2% in 2026
Coastal counties: the largest increases
Under the settlement, the Rate Bureau can't request another increase before June 2027. These are base rates, so your own premium can change by a different amount depending on your company, home and coverage.
In South Carolina, insurance companies file their own rates with the South Carolina Department of Insurance. Premiums are generally highest along the coast and lower inland, including around Fort Mill, Rock Hill and Lake Wylie.
What Affects Your Insurance Cost
Roof Age and Condition
Roofs are currently the biggest factor for both price and eligibility. Older roofs usually mean higher premiums, fewer company options, or coverage that pays actual cash value instead of replacement cost.
Age of the Home
Newer homes, and especially new construction, usually get the best rates. Older plumbing, electrical and HVAC systems can raise premiums.
Size and Rebuild Cost
Your dwelling coverage is based on what it would cost to rebuild the home, not the purchase price or land value. Larger homes and higher-end finishes cost more to rebuild, so they cost more to insure.
Location
Coastal exposure, wind and hail history, distance to a fire station and local claims all play a role.
Your Coverage Choices
Higher coverage limits and add-ons like water backup raise the premium. Higher deductibles lower it, but they mean you pay more out of pocket on a claim.
Insurance Score and Claims History
Many companies use a credit-based insurance score, along with your claims history and prior insurance. Each company weighs these differently.
Condos and Townhomes Work Differently
With many condos and some townhomes, the HOA's master policy covers part of the building, and you insure the interior, your belongings and liability. That can lower your own premium, but part of the HOA dues usually pays for the master policy. Ask for the HOA's insurance details early. See buying a townhome in Charlotte and HOA fees explained.
Flood Insurance Is Separate
Most homeowners policies don't cover flood. If a home is in a high-risk flood zone, your lender will require flood insurance, which adds to your payment. Even outside a flood zone, it can be worth pricing. According to FEMA, almost one-third of National Flood Insurance Program claims from 2014 to 2024 came from outside high-risk areas. Check the FEMA flood map before you make an offer, especially near Lake Norman, Lake Wylie or creeks.
How Insurance Affects Your Mortgage Payment
If you have a mortgage, your lender will require homeowners insurance. In most cases the premium is paid through your escrow account as part of your monthly payment, along with principal, interest, property taxes and any mortgage insurance. That means:
A higher premium raises your monthly payment.
A higher payment can lower the price range you qualify for.
At closing, you'll usually prepay the first year's premium and fund part of your escrow account.
Premiums can also change at renewal, which is one reason escrow payments change from year to year. See escrow explained.
Why I Use Real Insurance Numbers Before You Make an Offer
Online calculators often guess at insurance and get it wrong. Before an offer, I prepare a Total Cost Analysis for that specific home, using realistic insurance, property taxes and HOA dues, so you see the real monthly payment and cash to close. When it matters, I'll suggest getting an actual insurance quote before you sign.
How to Keep Your Insurance Cost Down
Shop with more than one agent, ideally an independent agent who can quote multiple companies.
Compare the same coverage across quotes, not just the price.
Bundle home and auto if it makes sense.
Ask about roof age before you make an offer on an older home.
Review your policy every year before it renews.
For a full walkthrough with tips from local agents, see how to shop for homeowners insurance in NC and SC. You can also find agents I've worked with on my vendors page.
Property Insurance FAQs
Is homeowners insurance cheaper in South Carolina or North Carolina?
On average, the two states are close. The bigger differences come from the specific home and whether it's near the coast.
Do I have to have homeowners insurance to get a mortgage?
Yes. Lenders require it, and you'll usually need proof of coverage before closing.
Does homeowners insurance cover floods?
Usually not. Flood insurance is a separate policy.
Why did my insurance go up when I didn't file a claim?
Premiums can rise because of statewide rate changes, higher rebuilding costs or your company's own pricing, even without a claim.
When should I get an insurance quote?
Ideally before you make an offer on an older home, and no later than the day you go under contract.
Get Your Real Monthly Number
If you're buying in North Carolina or South Carolina, I'll help you plan for realistic insurance, taxes and HOA dues on the specific homes you're considering, so the payment doesn't surprise you later.
Schedule a mortgage consultation or start your mortgage application. You can also read what past clients say on my reviews page.
Paul Mattos
Mortgage Broker | Refine Mortgage
Carolina Home Financing
NMLS# 2339069 | Licensed in NC and SC
Call or text: 980-221-4959
Email: paulm@refinemortgage.net
Refine Mortgage Inc. | NMLS# 2417960 | Equal Housing Lender. This article provides general educational information and is not insurance advice, an insurance quote or a commitment to lend. Insurance premiums, coverage and eligibility are set by each insurance company and vary by property, location, coverage and buyer. Averages and rate changes shown are from the sources cited and may not reflect your premium. Not all applicants will qualify for financing.
