North Carolina Landlord Insurance
Get a full analysis of North Carolina landlord insurance costs, coverage, and companies.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Find the Best Landlord Insurance Options in North Carolina
There are nearly 11 million residents in North Carolina, with around 34% living in rental homes. There are a lot of opportunities for residential landlords in North Carolina. And whether you rent out a single-family home, a beachside condo, or a multi-unit apartment building, rental properties can be a smart investment. It's important to protect your investment with highly rated landlord insurance in North Carolina.
Landlord insurance protects your rental properties with property coverage and liability coverage.
A local independent insurance agent can help you get landlord insurance quotes from multiple insurance companies in North Carolina so you can find the policy that best meets your needs and budget.
Best Landlord Insurance Companies in North Carolina
The following are some of the best landlord insurance companies in North Carolina. These companies provide a mix of valuable coverage offerings and competitive pricing.
- Progressive: Progressive is based in Ohio and offers personal insurance, including landlord insurance. North Carolina residents can look to Progressive for most of their personal insurance needs.
- Foremost Insurance Company: Foremost was founded in 1952 and offers a wide range of coverage, including landlord insurance, in 50 states.
- Safeco: Safeco has been protecting individuals and families since 1923. The company offers landlord insurance in North Carolina, as well as a comprehensive range of other personal insurance policies. Working through independent agents, Safeco makes it easy to get the best mix of coverage and pricing.
- Central Insurance Companies: Central Insurance Companies is a well-established carrier with more than a century of history in the insurance industry. It provides a wide range of coverage options, including landlord insurance, in 24 states.
- REInsurePro: This carrier offers several important forms of property insurance, including coverage for single- and multi-family homes, vacation rentals, renovations in progress, vacant land, and more.
An independent insurance agent in your area can help you learn more about these and other landlord insurance companies in North Carolina. A local agent can help you get competitive quotes for the coverage that fits your needs.
What Is Landlord Insurance?
Landlord insurance is similar to homeowners insurance, except that while home insurance covers owner-occupied dwellings, landlord insurance is designed for people who rent out residential properties to others. Landlords tend to have different or additional risks than typical homeowners, and landlord insurance is designed to address those risks.
Landlord insurance in North Carolina typically covers property damage to both the building and the landlord's personal property on the premises. It also provides liability coverage and loss of rental income coverage for the landlord.
Is Landlord Insurance Required in North Carolina?
Most lenders will require landlord insurance if you're financing the purchase of your residential rental property, but North Carolina state law does not require the purchase of landlord insurance.
An independent insurance agent in your area can help you determine how to appropriately insure your particular rental property.
What Does Landlord Insurance Cover in North Carolina?
Landlord insurance in North Carolina protects your investment in your residential rental property with the following types of coverage:
- Property coverage: North Carolina landlord insurance provides dwelling coverage and other structures coverage. These cover the building and detached structures (e.g., a garage or shed) for physical damage caused by fire, lightning, wind, hail, ice, snow, or other covered perils. You'll also have personal property coverage in your North Carolina landlord policy. It covers your personal property used to service the rental, including items like lawnmowers, tools, or other maintenance equipment. It does not cover your tenants' personal property.
- Liability coverage: Landlord liability coverage protects you if someone is injured on your property or if you are responsible for damaging someone else’s property. Landlord liability insurance covers the costs of any medical treatment or property repairs that are required. If you're sued, it also covers legal costs (e.g., attorney fees, court costs, and financial settlements or judgments).
- Loss of rental income: North Carolina landlord insurance covers lost rental income if your tenants have to move out so you can repair your building after a fire, storm, or some other covered peril. (This does not provide coverage if your tenant can't pay the rent because of a job loss or financial problem.)
A local independent insurance agent can help you decide if you need additional types of coverage for your rental property.
What Else Can North Carolina Landlord Insurance Cover?
Every landlord's situation is different. You may face some risks that others don't, depending on the type of property you own, whether you have short- or long-term renters, and even the age of your property.
Some insurance companies offer additional coverage options that you can include in your North Carolina landlord insurance policy, such as:
- Non-occupied dwelling coverage: Covers the property when it's vacant. Without this coverage, your insurance company may not cover damage that occurs if the home is vacant for more than 30 days.
- Building code coverage: If you own an older property, the building codes may have changed since it was built. If the building is damaged, additional work may need to be done to bring it up to code. This coverage can reimburse you for some of these unexpected costs.
- Rent guarantee insurance: Offers some protection if a tenant fails to make rent payments. It can cover the revenue losses for a set period of time, which is typically long enough for you to complete the eviction process. Rates are based mainly on the amount you charge in rent and the creditworthiness of your renters.
Rent guarantee insurance is sometimes referred to as eviction insurance, as it may cover the cost of evictions. Keep in mind that this coverage is usually very expensive, and you won't likely recoup all of your losses. You'll have to pay a deductible, and it will typically only cover a percentage of the monthly rent up to a set limit.
Landlords in North Carolina should be aware of the various coverage options that are available, so you can be sure you are getting all the coverage you need to protect your investment and your income. A independent insurance agent can help with your landlord insurance in North Carolina.
What's Not Covered by Landlord Insurance in North Carolina?
As with all insurance policies, landlord insurance has some limitations. Landlord insurance in North Carolina will not cover:
- Flood damage: Flood damage is not covered by landlord insurance or homeowners insurance of any kind, even if the flood is the direct result of a covered storm. You'll need to supplement your landlord insurance policy with a flood insurance policy if you want to have coverage for flood damage.
- Intentional damage caused by tenants: If a tenant damages your property on purpose, most landlord insurance policies will not cover the cost of repairs.
- Normal wear and tear: Items on your property that break because of normal wear and tear are not covered by landlord insurance. If, for example, a refrigerator, a furnace, or a water heater breaks because of normal wear and tear, landlord insurance won't help you pay to repair or replace it.
It is important to be aware of what your policy does and does not cover so that you do not face any unfortunate surprises later. When you work with an independent insurance agent in your area, your agent can help you review your policy and understand when your coverage doesn’t apply.
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How Much Does Landlord Insurance Cost in North Carolina?
Landlord insurance generally costs about 25% more than a standard homeowners insurance policy in your area. However, every landlord will have a different insurance premium. That's because exact rates are based on your unique property and its risk factors.
In general, landlord insurance premiums are based on characteristics such as:
- The size and location of your property
- The type of building (e.g., single-family home, multi-family apartment building, etc.)
- The age and construction of your building
- The number of tenants occupying the property
- Your expected monthly rental revenue
- The weather and crime risks in your city
If your building has fire sprinklers, burglar alarms, gated access, or other security systems, you may be able to save some money on your landlord insurance premiums.
A local independent insurance agent can help you get multiple quotes for landlord insurance in North Carolina. You can compare costs and coverage and choose the policy that offers the best fit for your needs and budget.
North Carolina Landlord Insurance FAQs
Landlord insurance in North Carolina covers the following for physical damage:
- The dwelling (physical structure of the building)
- Other structures on the property (garages, fences, etc.)
It also provides personal property coverage, which protects the landlord's personal property used to service the rental (e.g., lawnmowers, snowblowers, maintenance equipment) left on site if it's damaged by a covered loss.
Landlord liability coverage is another essential protection offered by landlord insurance in North Carolina. It protects you from negligence claims, like when someone is injured on your property or if you are responsible for damaging someone else’s property.
Finally, standard landlord insurance policies typically include loss of rental income coverage. This coverage reimburses you for your lost rental income if your tenants have to move out so you can repair your building after it has sustained covered property damage.
Residential property owners are not required by law to have a landlord insurance policy to rent out their property. You will be required by your bank to purchase landlord insurance if you've got a mortgage on your rental property.
There are also situations where an insurance company will require that the policy you purchase to protect your residential property be classified as landlord insurance, not homeowners insurance.
Whether or not you'll need landlord insurance or homeowners insurance is usually determined by how you use your property and the insurance company you select.
Landlord insurance generally costs about 25% more than a standard homeowners insurance policy in your area.
Landlord insurance costs in North Carolina will vary based on your property and its unique set of risk factors, such as its size and location, type of construction, the number of tenants, the crime and weather risks in your city, and more.
If your building has fire sprinklers, burglar alarms, gated access, or other security systems, you may be able to save some money on your North Carolina landlord insurance premiums.
Yes. Many landlords require tenants to purchase renters insurance to avoid disputes arising from damage to the renter's belongings, as well as any disputes over liability claims or lawsuits.
If you require your tenants to have renters insurance, it must be spelled out as part of the lease agreement, with specific tenant responsibilities and the consequences of not providing proof of insurance made clear.
We recommend several top landlord insurance companies in North Carolina, including Progressive, Safeco, Foremost, Central Insurance Companies, and REInsurePro.
Landlord insurance in North Carolina covers damage caused by tenants in some circumstances.
"Sudden and accidental damage" caused by a tenant will usually be covered by landlord insurance. For example, if a tenant accidentally causes a kitchen fire, the damage to covered parts of the building (walls, floors, appliances that you own, etc.) should be covered by your landlord insurance.
However, any fire damage to your tenants' possessions will not be covered by your landlord insurance. It will be covered by the tenant’s renters insurance if they have it.
Intentional damage caused by a tenant will not be covered by landlord insurance in North Carolina. If a tenant punches in a wall, kicks in a door, paints graffiti, or otherwise intentionally damages some part of a unit, you likely won't receive reimbursement from your landlord insurance policy.
Standard landlord insurance in North Carolina typically won't cover the cost of evictions. However, eviction insurance, or rent guarantee insurance, can be purchased separately from some insurance companies. It will cover some of the costs involved in an eviction, as well as some of the rent you miss out during the eviction process.
North Carolina landlord insurance does not cover flood damage. If you want flood protection, you can purchase flood insurance designed for landlords from the National Flood Insurance Program and some private carriers.
A local independent insurance agent can help you find a competitively priced landlord insurance policy that meets your needs. Independent agents aren’t tied down to one carrier. They can get quotes from multiple insurance companies so you can choose the North Carolina landlord insurance policy that best fits your needs and budget.
Contact an independent agent in your area today for a free, no-obligation consultation.
https://www.iii.org/article/coverage-for-renting-out-your-home
https://www.census.gov/quickfacts/fact/table/NC,US/PST045223