Effective June 1, 2025, the average North Carolina homeowners policy will cost 7.5 % more—with another 7.5 % slated for June 1, 2026. For a home insured at $300 k, that’s roughly $180–$245 in year one alone. Below, we explain why premiums are rising, how much the increase will cost in your city, and the best ways to defend your budget.
1. Why Are North Carolina Rates Rising in 2025?
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Hurricane & Severe-Weather Losses since 2018 have driven more than $3.2 billion in claims.
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Reinsurance Shock: Global reinsurers raised prices 25–40 % after consecutive billion-dollar disasters.
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Construction Inflation keeps replacement-cost estimates elevated.
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Coastal Population Growth expands insurer exposure in Brunswick, New Hanover, and Pender counties.
The January settlement kept territory increases below 35 % and blocks new filings until 2027, giving homeowners two years of predictability.
2. Key Dates: The Settlement at a Glance
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Nov 9 2024: NC Rate Bureau requests +42.2 % statewide (proposal only—no immediate change).
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Jan 17 2025: Commissioner announces compromise: +7.5 % in 2025 and +7.5 % in 2026 (final increase set).
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June 1 2025: First 7.5 % increase hits renewal bills.
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June 1 2026: Second 7.5 % increase takes effect—15 % cumulative hike.
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June 1 2027: Earliest date the Bureau may file another rate request (stability window ends).
3. Translating Percentages into Real Dollars
The statewide average premium of $2,403 climbs to roughly $2,583 in 2025. Home value, endorsements, and regional surcharges will alter your exact increase. Coastal ZIPs could reach the 35 % cap once wind/hail charges are added.
4. City-by-City Premium Snapshot
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Charlotte: 2024 avg. $2,400 → +$180 = $2,580 (2026 projection: $2,760).
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Raleigh: 2024 avg. $2,350 → +$176 = $2,526 (2026 projection: $2,707).
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Greensboro: 2024 avg. $2,300 → +$173 = $2,473 (2026 projection: $2,653).
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Asheville: 2024 avg. $2,250 → +$169 = $2,419 (2026 projection: $2,597).
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Wilmington†: 2024 avg. $2,600 → +$195 = $2,795 (2026 projection: $2,990).
†Coastal ZIPs may also carry wind/hail surcharges that push increases toward the 35 % territory cap.
5. Five Strategies to Offset the 2025 Increase
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Raise—or split—your deductible. Moving to $2,500 can cut 8–12 % off premium.
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Bundle policies. Combine auto and home insurance to save up to 25 %.
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Add wind-mitigation upgrades. Roof tie-downs and shutters earn 5–15 % credits east of I-95.
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Validate your dwelling value. A fresh cost estimator can right-size over-insurance.
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Shop private flood & stand-alone wind. Splitting coverage can lower the base homeowners rate.
6. Frequently Asked Questions
Is this rate hike statewide or by ZIP?
The 7.5 % is a statewide average. Actual factors range from –4 % to +35 %.
Will my premium jump again in 2026?
Yes—another 7.5 % applies on June 1, 2026, for a total 15 % increase.
Does the cap include flood or windstorm coverage?
No. Flood and Coastal Property Insurance Pool windstorm policies rate separately.
Can I appeal my new premium?
You can request a data review through your carrier and escalate unresolved issues to the NC Department of Insurance (855-408-1212).
Ready to stay ahead of rising costs? Start your North Carolina home-insurance quote or call (800) 123-4567.
Since 1993, All About Insurance has helped 37 000 North Carolina households protect what matters most. Let us do the same for you.
