North Carolina homeowners are facing another wave of insurance rate increases, with the statewide base rate climbing 7.5% starting in June 2025. While this is a significant drop from the originally proposed 42.2% hike, it still places a financial strain on many families—especially those rebuilding from recent climate-driven disasters like Hurricane Helene.
Why Are Home Insurance Rates Rising?
Several key factors contribute to this uptick in costs:
- Stronger storms and unpredictable flooding – Extreme weather events are becoming more frequent and severe, leading to higher claims.
- Rising construction costs – Lumber, roofing materials, and labor prices remain high, pushing insurers to set aside more money for potential rebuilding efforts.
- Reinsurance costs – Insurers must pay their own insurance (known as "reinsurance"), which has surged after back-to-back billion-dollar disasters.
Homeowners in coastal areas will see some of the steepest increases—16% this year and another 15.9% in 2026—while growing metro areas like Charlotte face consecutive 9% hikes.
How Homeowners Can Mitigate Rising Costs
While these rate changes are inevitable, there are still strategies that homeowners can use to lower their insurance burden:
- Shop around annually – Independent agencies like Emerald Insurance Advocates can compare multiple providers to find the most competitive rates.
- Raise your deductible – Increasing your deductible from $1,000 to $2,500 can reduce annual premiums, but homeowners should ensure they’re financially prepared for higher out-of-pocket costs.
- Invest in home resilience – Strengthening homes against severe weather (like installing a fortified roof) can lead to substantial discounts.
- Utilize state programs – North Carolina offers roof-fortification grants that may help offset resilience upgrades.
The Reality of Outdated Flood Maps
Another concerning issue is that many homes affected by Hurricane Helene were
outside official FEMA flood zones based on outdated models, leaving owners uninsured for flood damage. This has led to devastating financial losses for businesses and homeowners who assumed they were safe from flood risks.
Insurance experts stress the importance of reviewing
modernized risk assessments rather than relying solely on FEMA flood maps. It’s a painful reminder that
no place is immune from climate-related disasters.
Looking Ahead: Preparing for Future Challenges
With climate change and rebuilding costs continuing to drive premiums higher, homeowners should stay proactive about their coverage and adjust their policies to fit evolving risks. Independent agencies like Emerald Insurance Advocates can help guide clients through these complex changes and find
customized solutions that keep them protected without breaking the bank.
If you’re concerned about your insurance rates, now is the time to
review your policy and explore ways to safeguard your home and finances. For personalized guidance, reach out to Emerald Insurance Advocates—we’re here to help you make informed, confident decisions.
