Raleigh, the capital of North Carolina, sees home insurance costs that are slightly below the national average. The average cost for home insurance in Raleigh is $1,375 per year, compared to the national average of $1,428. Several factors, including Raleigh’s location inland, a lower crime rate, and the age of homes, contribute to these competitive insurance rates.
Local Factors Impacting Home Insurance Costs in Raleigh
Mild Weather: Raleigh is less exposed to hurricanes and flooding compared to coastal cities, which helps keep insurance costs lower. However, the city does experience thunderstorms and tornadoes.
Flood Risk: Homes near rivers and creeks, like the Neuse River, may face flooding risks, though these are less severe than in coastal areas.
Growing Population: With Raleigh’s expanding population, urban areas may experience higher property crime rates, which could affect premiums in certain neighborhoods.
Home Insurance Rates by Home Age in Raleigh
The age of your home affects insurance costs, with newer homes often having lower premiums due to modern construction standards and safety features.
Home Age
Average Annual Premium
0-10 years
$1,300
11-25 years
$1,360
26-50 years
$1,440
51+ years
$1,550
Home Insurance Rates by Credit Tier in Raleigh
Credit scores significantly impact home insurance premiums in Raleigh. Below is a breakdown of how rates vary by credit tier:
Excellent Credit (750+): $1,300 per year
Good Credit (700-749): $1,375 per year
Fair Credit (650-699): $1,485 per year
Poor Credit (Below 650): $1,670 per year
Cheapest Home Insurance Providers in Raleigh
Despite its relatively low average insurance costs, Raleigh homeowners can find even more affordable options from the following insurance providers:
Provider
Average Annual Premium
State Farm
$1,320
Allstate
$1,370
Liberty Mutual
$1,350
Farmers
$1,340
Home Insurance Rates by Deductible Amount in Raleigh
Raising your deductible can help reduce your home insurance premium, though it will increase the amount you need to pay out of pocket when filing a claim. Here’s how deductible amounts affect premiums in Raleigh:
$500 deductible: $1,500 per year
$1,000 deductible: $1,375 per year
$2,500 deductible: $1,250 per year
Types of Homeowners Insurance in Raleigh
HO-3: The standard homeowners policy covering the home structure, personal property, and liability.
HO-5: Premium coverage offering more comprehensive protection for both the home and high-value belongings.
HO-6: Condo insurance for condo owners, covering the unit’s interior and personal property.
Additional Coverage Options
Flood Insurance: Homes near rivers or low-lying areas should consider adding flood insurance, even though Raleigh is less prone to coastal flooding.
Windstorm Insurance: With the risk of tornadoes and severe storms, windstorm insurance is an important add-on for Raleigh homeowners.
Water Backup Insurance: Protects against water damage from sewage or drainage backups, particularly useful for older homes in Raleigh.
Frequently Asked Questions (FAQs) about Home Insurance in Raleigh
Is flood insurance required in Raleigh? While not mandatory for most homes, flood insurance is recommended if you live near rivers or creeks that could overflow during heavy rains.
Does Raleigh’s weather impact home insurance costs? Yes, while Raleigh is less exposed to hurricanes, severe thunderstorms and occasional tornadoes can still affect home insurance rates.
Comparison of Home Insurance in Charlotte vs. Raleigh
Charlotte: $1,420 average annual premium
Raleigh: $1,375 average annual premium
While Charlotte and Raleigh both experience severe weather, Charlotte’s slightly higher crime rate and urban population density result in higher home insurance premiums compared to Raleigh. However, both cities offer competitive insurance rates, and homeowners can benefit from discounts and additional coverage options based on their specific location and home type.
