Finding the best homeowners insurance in North Carolina is not the product of a single company. Big marketing dollars have, dare I say, commoditized home insurance to the point that many consumers think the only difference between companies is PRICE.
But let’s talk about 3 must haves that you should always be aware of when it comes to your home insurance.
NC Home Insurance MUST #1
Always have Replacement Cost, not Actual Cash Value
If I’ve seen it once, I’ve seen it a hundred times.
Someone calls me to check on home insurance for a North Carolina home.
They hope to compare it to the policy they had on their old home (or maybe the policy their best friend forever has).
I take one look at the policy and see these words in black and white:
ACTUAL CASH VALUE
What do these three ominous words mean?
The insurance lingo: any personal stuff inside the home will not be replaced with a like kind and quality product.
For example: Let’s say you have a great 2012 Samsung TV in your living room. In 2012, you paid a whopping $600 for it. But now, because of depreciation, it’s worth $200. Ouch. One day a huge storm hits your Fayetteville, NC neighborhood and a tree falls on your roof into your living room and smashes your amazing 2012 Samsung TV. Unfortunately, your Actual Cash Value insurance policy will only give you $200 for it.
If you had Replacement cost on your home insurance policy, your insurance company would have sent you a nice fat $600 check to go out to your nearest Best Buy and purchase a brand spankin’ new TV.
Replacement cost is a BIG deal!
Yes, your Actual Cash Value homeowners policy is cheaper. But it’s cheaper in every sense of the word.
Do yourself a favor, go pull your home insurance and make sure your see REPLACEMENT COST coverage.
The best homeowners insurance in North Carolina will have Replacement Cost or Guaranteed Replacement Cost!
NC Home Insurance MUST #2
Be wary of percentage deductibles
When I say the word “Deductible” …. as it pertains to home insurance …. are you confident you know what yours is?
I get it, it might not be front of mind, but you probably think: “I took care of that when I bought this place. I’m good.”
But are you really?
There is this thing called “deductibles by peril.” We often see this as it pertains to Wind/Hail damages on your home.
Take a guess as to what are the most popular home insurance claims.
(This gets me really riled up. There are so many homeowners that do not realize the situation they are in.)
You will often see a 1% or 2% deductible for these perils.
1% or 2% may SEEM like small numbers, but let’s play out a real-life claims situation and see what happens.
Imagine you own a $350,000 home near the coast. Maybe Wilmington, NC or Carolina Beach, NC. Lucky you, 2 years after purchasing, Hurricane Thelma comes barreling through your front door. Your deductible becomes a percentage of your home replacement cost. So, with a $350,000 home, your deductible becomes $3,500 or in a 2% situation $7,000!
Those deductibles aren’t so small anymore.
Yes, the “deductibles by peril” setup drastically reduces the monthly cost of the home insurance policy, but you could end up paying more than you think when a claim occurs.
If you are fully aware that you purchased this coverage and want to assume that risk then thumbs up. But if you bought the “cheapest” home insurance policy to check the box on home insurance, you might have made a costly error.
If only part of your roof gets damaged, it might not be covered at all.
The best homeowners insurance in North Carolina will have a single or clear deductible set up!
NC Home Insurance MUST #3
Consider bundling home and auto insurance
It could be the most over used term in our industry, but, bundling home and auto insurance together with one company can equal major savings on your total insurance costs for the year.
Now, bundling does not mean that one policy covers both home and auto insurance. It simple unlocks a discount on both policies. Saving you some cold hard $$$$.
I have seen upwards of a 20% discount on home insurance policies just because that same company also writes the auto insurance on the account.
Now, sometimes because of your driving record or losses, companies wont be as eager to insure both home and automobiles. In this situation, it is even more important to be working with an independent insurance agent so they can shop multiple companies and find you the best combination of the policies you need.
Some companies will still extend the multi-policy discount as long as your agent has both home and auto.
The best homeowners insurance in North Carolina will include a multi-policy discount.
How To Find The Best Homeowners Insurance In North Carolina?
So where do you start?
Find out the following items from your insurance agent or company:
- Do I have Replacement Cost on my home and my stuff?
- Do I have 1 deductible or several? Are wind/hail losses covered by the same deductible?
- Have I taken advantage of all multi-policy discounts that might be available to me?
I suggest working with a local independent agent. They can review your coverages and suggest a great plan to defend your home against the unknown.
Independent agents have choices when it comes to companies and coverages. They don’t work for any one company which allows them to work hard for the client and find the right coverage for your situation.
Please call our office today at 910.484.6171 for a no-obligation quote, or click here to complete a request form and we get back with you as quickly as possible.