A Guide by All Graham Insurance Solutions
If you’re a North Carolina homeowner, you’ve likely noticed your insurance premiums climbing — sometimes sharply. One Charlotte homeowner recently saw a 41% increase in their premium without ever filing a claim. Unfortunately, they’re not alone.
Across the state, homeowners are preparing for more rate hikes over the next two years. Let’s break down why this is happening, what to expect, and how you can protect your budget.
📈 The Facts: North Carolina Rate Increases
- In early 2024, the NC Rate Bureau requested a 42.2% average statewide increase in homeowners’ insurance rates.
- After negotiations, Insurance Commissioner Mike Causey reached a settlement:
- +7.5% effective June 1, 2025
- +7.5% effective June 1, 2026
- The agreement caps any single territory’s increase at 35% and prevents new rate filings until 2027.
(Source: NC DOI, Jan. 2025)
Over the past few years, rates have already climbed:
- 36% total increase from 2018 to 2023 (UNC Kenan Institute)
- 44.4% rise since 2020 (LendingTree analysis)
Some coastal counties, like Dare and Brunswick, may see increases above 15% per year, while Charlotte homeowners are projected for ~9.3% in 2025 and ~9.2% in 2026.
🌪 Why Are Homeowners’ Insurance Rates Increasing?
1. Inflation & Construction Costs
Building materials, labor, and home repair expenses have surged, pushing claim costs higher.
2. Severe Weather & Climate Change
More frequent storms, flooding, and weather-related claims across North Carolina have raised risk factors.
3. Reinsurance Costs
Insurance companies buy “insurance for insurers.” As reinsurance premiums spike globally, those costs pass down to homeowners.
4. Underpriced Risk in Prior Years
For years, insurers held rates low to stay competitive — but claims outpaced premiums. Adjustments were inevitable.
5. Regional Risk Variations
Coastal and storm-prone areas see higher increases than inland regions like the Triad or western NC.
🧭 What NC Homeowners Can Do
- Review your coverage annually. Eliminate unnecessary endorsements or overlapping coverage.
- Increase your deductible if you can afford to pay more out-of-pocket.
- Bundle home and auto policies for multi-policy discounts.
- Invest in risk prevention. Roof upgrades, storm shutters, and home security systems can reduce premiums.
- Shop around with an independent agent. Carriers evaluate risk differently — a fresh quote can save you hundreds.
💬 Final Thoughts
Homeowners’ insurance costs are on the rise, but there are ways to stay in control. At All Graham Insurance Solutions, we help you compare top carriers, maximize discounts, and ensure your home stays properly covered without paying more than necessary.