As a state positioned along the coast, North Carolina homeowners face higher risks for many types of perils that can lead to homeowners insurance claims. Homeowners in North Carolina have a FAIR Plan, the NCJUA. The NCJUA was created in 1969 to provide an adequate market for essential property insurance. Since its inception, it has aided the healthy private insurance market and greatly assisted home ownership.
Coastal Property Insurance Pool (CPIP) was formerly known as the Beach plan. This is available for property owners located on the beach and other coastal areas of the state in 18 counties. As with other FAIR Plans, consumers are urged to try to find coverage in the private market.
The beautiful coastline is not the only contributing factor for the higher risks, and often high premiums in many places. Complex climates across the states cause homeowners to be deemed high risk. The states elevation above sea level is directly responsible for temperature change across the state. Lower parts of the state suffer from flooding that often leaves homeowners needing to file large water claims homeowners insurance and flood policies.
North Carolina is no stranger to Hurricanes. Direct damage from hurricanes affect homeowners on the coast, while the rest of the state is typically visited by the weakened storm moving inland causing wind, water, and hail damage. Regardless of the location, nearly all areas of North Carolina have had to deal with hurricanes, most recently with Hurricane Michael, Hurricane Matthew and Hurricane Florence causing homeowners insurance companies to pay billions of dollars in claims and sadly causing 70 deaths.
These types of high risk events have lead North Carolinians to focus on mitigating the risk both for safety and to reduce the occurrence of homeowners insurance claims due the extensive damage that this severe weather can cause. Hurricane Matthew was a wake-up call for many in the state as the frequency of roof claims was one of the highest on record. Many insurance companies now have responded with different deductibles, surcharges or credits for consumers, not only based on the age of the roof, but now the type of roof and materials. While the market moves on, consumers will find themselves more and more looking toward mitigating risk both to protect their futures and their insurance premiums.