Raleigh home insurance, explained by a local agency

Around Raleigh

• Wake County
• I-440 Beltline
• I-540 Outer Loop
• Crabtree Creek
• Walnut Creek
• Neuse River
• Six Forks Road

Hurricanes, wind and named-storm deductibles

Raleigh is well inland, but the remnants of tropical systems still bring high wind, falling trees and heavy rain to Wake County. Many North Carolina homeowners policies carry a separate deductible for this kind of damage, so it is worth reading your declarations page before storm season.

A named-storm deductible is usually a percentage of your dwelling (Coverage A) or personal property (Coverage C) limit, not a flat dollar amount. According to the NC Department of Insurance, it typically applies to wind or hail damage from a storm that has been formally named, during the period that starts when the National Weather Service issues an advisory, watch or warning for any part of North Carolina and ends 24 hours after the last one. The NCDOI example: a 2% named-storm deductible on a home insured for $300,000 is $6,000.

Some policies use a windstorm or hail percentage deductible instead, which applies to any wind or hail loss, named or not. We show you which one a quote uses and what it would mean in dollars for your house.

How the NC Rate Bureau affects your premium

North Carolina sets homeowners base rates differently from most states. The North Carolina Rate Bureau, which represents the insurance companies (it is not part of state government), files proposed base rates with the Commissioner of Insurance, who can approve them, negotiate a settlement or take the request to a hearing. Individual companies then apply their own discounts, deviations and underwriting.

A company can charge more than the Rate Bureau rate only with your written consent (a "consent to rate" form). Because each company prices and underwrites a little differently on top of the bureau rates, comparing several companies at once, which is what an independent agency does, can turn up real differences for the same house.

Flood is a separate policy

Standard homeowners policies exclude flood. Parts of Raleigh sit near Crabtree Creek, Walnut Creek, the Neuse River and their tributaries, and heavy rain from tropical systems can flood homes outside mapped flood zones too. National Flood Insurance Program policies generally have a 30-day waiting period, so buy before a storm is in the forecast. We also quote private flood options when they fit.

Buying a home in Raleigh: insurance before closing

Your lender will ask for proof of homeowners insurance (often called an evidence of insurance or binder) listing the lender as mortgagee before closing. Start the insurance step as soon as you are under contract, not the week of closing: the age and condition of the roof, the electrical panel, plumbing and heating, any prior claims on the house and its distance to a fire hydrant can all affect which companies will write it.

Insure the house for what it would cost to rebuild, not the purchase price or tax value. If the home is a condo or a townhome in an HOA, we read the association documents to decide between a homeowners (HO-3) and a condo-unit (HO-6) policy. Send us the address, your closing date and the lender’s mortgagee clause, and we handle the paperwork with your lender and closing attorney.

Bundle home and auto

Most of the insurance companies we represent offer a multi-policy discount when the same company writes your home and auto. Bundling is not always the lowest total, so we price the bundle and the best separate options side by side and show you both.