Renters insurance in North Carolina is a smart investment, as it can safeguard your valuable possessions at a low rate. To help you find suitable options, MoneyGeek rated the top renters insurance providers across North Carolina on key parameters such as customer service quality, financial strength and affordability.
The Best and Cheapest Renters Insurance in North Carolina for 2022: Rankings, Reviews and Rates
Cheap Renters Insurance Companies in North Carolina
Most people consider the cost of a policy while making their buying decision. In North Carolina, the most affordable renters insurance provider is State Farm. Their renters policies cost $84 on average, which comes out to $7 per month.
MoneyGeek analyzed quotes across multiple ZIP codes in North Carolina to come up with these prices. Each price is for a package with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
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Best Renters Insurance Companies in North Carolina
In addition to pricing, an insurer’s customer service quality and financial stability are important. You should have confidence that the provider can quickly process and pay your claim.
MoneyGeek ranked the best renters insurance firms in North Carolina based on the main factors of affordability, J.D. Power’s customer service scores and financial stability ratings from AM Best. Based on the data, USAA ranks as the best provider in the state, but its services are only available for people with a military background. The best insurer for most renters in North Carolina is State Farm, with a rating of 95 out of 100 points.
Notable features of USAA’s renters insurance policies are replacement cost coverage, liability coverage, active-duty, veteran and family coverage, discounts, a mobile app that offers 24/7 access to claims and insurance documents, fast claims processing and military uniform and equipment replacement. To get discounts, you can bundle your auto and renters insurance policies, install a security system in your home or improve your credit score.
State Farm offers customizable policies. In addition to standard coverage, you can opt for add-ons such as business property coverage, earthquake damage coverage, identity theft protection and more. State Farm stands out for its convenient online policy management feature and excellent financial strength. However, they don’t offer many discounts.
Pros of Travelers' renters insurance coverage are its financial strength, multiple discounts, replacement cost and valuables protection. This provider provides tailored insurance plans, along with phone and online support. You can get rebates for protective devices like burglar alarms and smoke detectors, as well as loss-free and multi-policy discounts.
Besides basic coverage, Allstate offers additional options such as flood insurance, personal umbrella policy, scheduled personal property, increased coverage on business property and identity theft restoration. This provider's standard policy includes coverage for additional living expenses. Allstate's website offers plenty of educational resources for customers and prospects. It also gives discounts to U.S. military members and people aged 55 and older.
Nationwide's basic coverage includes contents, loss of use, personal liability, medical payments to others, building alterations and credit card coverage. Its policies do not cover home businesses, motor vehicles or roommates. Optional coverages include valuables plus, water backup, theft extension, earthquake and brand-new belongings. You can get multi-policy, protective device and claims-free discounts.
Largest Renters Insurance Companies in North Carolina
Ideally, you should buy insurance from a large and established provider, as it is more likely to quickly and accurately pay your claim. In North Carolina, the biggest insurance companies by market share are State Farm (17%), North Carolina Farm Bureau (12%), Nationwide (9%), USAA (9%) and Allstate (7%).
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Average Cost of Renters Insurance in North Carolina
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The average annual rate of renters insurance in North Carolina is $106, which is $53 less than the national average of $159. These costs are for a policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
To save money, you should compare renters insurance quotes from multiple providers. For instance, in North Carolina, you can save $56 per year by choosing the cheapest provider, State Farm, rather than the most expensive carrier, MetLife.
What Factors Impact Renters Insurance Cost in North Carolina
Several factors affect the cost of your renters insurance policy in North Carolina, including the following key elements:
- Coverage Amount: If you buy more coverage, you will pay a higher premium. To avoid unnecessary coverage and costs, you can perform a home inventory to learn your possessions’ actual value.
- Location: Your ZIP code also impacts your premium, as areas with greater exposure to crime, adverse weather conditions and other risks typically have higher renters insurance rates.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): It’s important to learn the difference between ACV and RCV. ACV policies assess that your possessions depreciate over time, so they pay less for old items. RCV plans will cover your costs for a new item of the same type and quality, but they cost more, as their payout is higher for a claim.
- Deductible: You need to pay a deductible to the provider for your claim processing. A higher deductible means a lower premium, as you need to pay more out of pocket when making a claim.
- Credit Score: A good credit score can earn you a discount on your policy. Conversely, those with bad credit scores need to pay a higher premium, as insurance companies think they are more likely to file claims.
Renters Insurance in North Carolina: What You Need to Know
Industry analysts recommend buying renters insurance because you can secure your assets from natural disasters, burglary and other unanticipated catastrophes at a relatively low price.
33% of the North Carolina population are renters, and the average monthly rental rate in this state is $931. The average monthly cost of a basic policy is $9, or less than 1% of the average monthly rental price. This rate is for a plan with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.
What Renters Insurance Typically Covers in North Carolina
It’s wise to learn what your renters insurance policy in North Carolina covers before you shell out the premium. A standard policy typically covers basics like personal property, liability insurance, additional living expenses and medical payments.
Personal property insurance in North Carolina generally covers damages caused by extreme events like wildfires, tornadoes, hurricanes and others.
What Renters Insurance Typically Does Not Cover in North Carolina
Renters insurance in North Carolina generally covers multiple emergencies, but the following items are often excluded:
- Earthquake Damage: You need to buy a rider for earthquake coverage, as it is normally excluded.
- Flooding: Water damage due to a broken main or pipe is usually covered, but not flooding from natural disasters. If you live in an area prone to floods, you can acquire flood insurance through the National Flood Insurance Program (NFIP).
- Roommate Property: Renters insurance does not cover your roommate’s possessions, and they need to buy their own personal coverage.
- Structural Damage: Damage to the building’s frame and structure is excluded, and it is up to your landlord to insure against structural damage.
- Expensive Items: High-end items that exceed policy limits are not included, and you need to buy add-on coverage to protect your valuables.
Make an effort to read the fine print to learn what is covered and excluded. This information can help you make a successful claim.
FAQs About Renters Insurance in North Carolina
Renters Insurance in North Carolina Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from six of the top insurance companies in North Carolina provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across North Carolina. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
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