Best Landlord Insurance in North Carolina

Visitors flock to North Carolina to enjoy the state’s bountiful natural beauty. From the Atlantic coast to the Blue Ridge mountains, rental properties in the state can be very lucrative.

Landlord insurance in North Carolina is a must for those who want peace of mind and a financial safety net, especially with the possible risk of hurricanes and tornadoes. 

Before looking for coverage, use this comprehensive guide to help yourself find the best landlord insurance, also called rental property insurance, in North Carolina.

The average landlord insurance cost in North Carolina is about $1,967 per year on a $200,000 home, $2,126 per year for a $250,000 house and $2,563 per year on a $300,000 home.

For reference, these premiums are on par with those in Georgia and slightly higher than South Carolina’s landlord rates.

It’s widely reported that landlord insurance is 15% to 25% higher than homeowners insurance on the same property. Using the data we put together for homeowners insurance in North Carolina, we can estimate landlord insurance premiums in the state.

The table below displays average landlord insurance costs in North Carolina on homes at a few different common price points.

Premiums differ based on many factors that we’ll break down in-depth later. Home value is one of the most prominent factors, and larger, more expensive homes always need more coverage. Greater amounts of insurance will cost more money.

You won’t know your exact rate until you get a quote, though, which is why it’s essential to shop around before settling on a landlord insurance policy.

Landlord insurance for rental property in North Carolina is officially known as dwelling fire policies (DP). These policies are a broad type of home insurance plan that covers more than the standard homeowners insurance policy that you get on the residence you live in, known as the HO3.

DP policies are perfect for landlords because they can cover:

DP policies cover rental properties in the following ways:

Not every landlord insurance policy includes every one of these coverages. Many dwelling policies are highly customizable due to the nature of the different types of rental properties you can cover with them. Policy options are as follows:

DP-1 policies are the most basic landlord insurance protection you can get. They cover every loss at actual cash value, meaning your insurer will deduct depreciation for all property damage before reimbursing you. This greatly lowers payouts. 

DP-1 plans also cover the fewest sources of damage, known as perils. They cover only nine perils, the most common being fire and wind damage. DP-1 plans also usually exclude liability coverage.

DP-2 policies in North Carolina offer more coverage than the DP-1 at a lower price than a DP-3. DP-2s cover more perils, such as theft, vandalism, water damage, and falling objects (like tree branches or power lines). They also pay most losses at replacement cost.

DP-3s cover the most sources of damage, usually always at replacement cost. They often include all the coverages by default; if they don’t, you should have no problem adding the one you want.

You need to find the right balance of budget and coverage to get the best landlord insurance in North Carolina. This will require comparing policies from several providers. You should shop around to know you’re getting the best deal.

Comparing landlord insurance quotes is easy and free, although it may take a little time. But, the potential money you save when choosing the right policy should be well worth the time it may take.

Some of the largest companies and agencies will have ways to get quotes entirely online. Otherwise, it doesn’t hurt to get in touch with the provider directly and get quotes. You can also get a feel for their customer service this way.

You can check out reviews online and inspect carriers’ financial ratings with sites like Moody’s or A.M. Best. If you don’t want to do all the searching on your own, you can look for an independent insurance agent.

Even if you get an agent’s help, you should know how coverage works and what your property needs, so you’re not going into any discussions blind. You also want to know which carriers tend to have some of the best rates in the state.

Farm Bureau and State Farm seem to offer some of the cheapest landlord insurance in North Carolina, based on our analysis. We examined some of the most popular providers in the state and classified their average premiums at different coverage amounts below.

Even on the cheapest property we analyzed — a $200,000 house — premiums varied by up to $1,529 from these select providers. You can see how crucial taking time to find the right policy is. 

Just because some rental property insurance companies in North Carolina are costly here doesn’t mean they will be the most expensive in your area or for your property. It would be best if you didn’t rule anyone out off the bat without doing at least a little research.

Charlotte has remained a fast-growing city even through the turbulent years of 2020 and 2021. It’s a popular destination for many and rental demands remain high, so it’s crucial for rental property owners to have landlord insurance in Charlotte.

On top of everyday occurrences that can go wrong, the Charlotte area is prone to tornadoes. Without landlord insurance, you’re risking paying for costly property damage out of pocket. You have many options and ways to save, so don’t delay getting your rental home insurance quote in Charlotte.

Understand your coverage needs. It would help to have basic information about your house handy, such as construction details. Then, you can compare policies from some of the top carriers in the area for rental home insurance in Charlotte, including the ones we mentioned earlier.

Providers will examine several factors about you and your property before determining your premium. Some of the most significant factors that affect rates include:

Larger rental properties with more square footage, structures, or tenants will need more coverage, which will cost more to insure. For example, a duplex with a pool will have higher premiums than a single apartment unit.

Older properties may have red flags that raise rates. Insurance companies are wary of dated roofs, pipes, siding, and HVAC systems. Old siding and roofs can compromise a structure’s ability to withstand high winds. Outdated pipes and air conditioning can worsen water damage. Insurance companies know that these issues can lead to payouts down the line, so they charge higher premiums to such properties.

Your location also matters. Homes may receive discounts if they’re within a certain proximity to fire hydrants or stations. You may pay higher premiums if you live in a flood zone or high-crime area.

Carriers will examine the claims history of you and your property to determine your landlord insurance rate, too. A history of claims can indicate a problematic property or policyholder, so insurers will note this.

No law requires landlords to have rental property insurance in North Carolina, but your lender will require you to have insurance if you have mortgages on your rental. 

Many landlords live in one part of their building and rent out other parts, such as duplexes, triplexes, quadplexes, or rowhouses. Some landlords also own second or vacation homes and rent those out temporarily.

Often, these landlords have mortgages. Lenders require homeowners to maintain insurance coverage on their property as part of the mortgage agreement. This financially protects both parties’ investment in the property.

The landlords described above won’t be covered with standard homeowners insurance. They’d need landlord insurance.

Clovered makes getting insurance for landlords in North Carolina easy. You can compare policies from some of the top providers in the state entirely online with our quoting engine. 

As an independent insurance agency, we were created to simplify insurance. We’re licensed to do business in several states along the Atlantic coast, and we’d love to help you with your North Carolina landlord insurance quote.

If you don’t want to shop online and would rather get a quote through one of our licensed agents, you can call us at 833-255-4117 during business hours. You can also email us at [email protected] for more information on landlord insurance for rental property in North Carolina.