Rising Homeowners Insurance Premiums in North Carolina Due to Storms

Homeowners in North Carolina have witnessed a substantial rise in insurance premiums, with rates increasing by an average of 44% from 2020 to 2025, as reported by LendingTree. This surge is largely due to the escalating frequency and severity of storms affecting the state. In response, an insurer operating in 18 coastal counties is implementing strategies to enhance home safety against hurricane-force winds, aiming to mitigate risks.

Since 2016, the North Carolina Insurance Underwriting Association (NCIUA) has invested $131 million in grants and initiatives to promote the installation of "Fortified" roofs. These roofs are engineered to withstand high winds and heavy rain, significantly reducing potential damage. Founded in 1969, the NCIUA serves as a nonprofit insurer of last resort for coastal areas and has been instrumental in advancing these safety measures.

Over 22,000 residents have joined the Fortified roof program developed by the Insurance Institute for Business and Home Safety, located in Richburg, South Carolina. Gina Hardy, CEO of the underwriting association, underscores the effectiveness of these proactive measures, stating that avoiding repairs is preferable even with insurance coverage. The Coastal Property Insurance Pool insures over 264,000 homeowners, with nearly 80% opting for "wind only" coverage to supplement private insurance policies.

Fortified roofs significantly reduce water intrusion, achieving more than a 95% reduction compared to standard roofs. Although these roofs may cost 10% to 25% more, or typically an additional $1,200 to $3,200, financial support is available through the NCIUA's Strengthen Your Coastal Roof program. This initiative offers grants up to $10,000 for policyholders in the Outer Banks and barrier islands to install these resilient roofs, with state contributions amounting to $7 million in 2021 and $2 million in 2023.

North Carolina Insurance Commissioner Mike Causey highlights that Fortified roofs not only decrease storm damage but also qualify for insurance credits, potentially reducing premiums. His department oversees rate-setting and promotes the adoption of stronger roofs, citing NC State University's research that shows homes with Fortified roofs reported about 35% fewer claims after major hurricanes and presented 23% less severe damage in claims.

Don Hornstein, a professor at UNC Chapel Hill School of Law and an NCIUA board member, emphasizes that Fortified roofs outperform newly constructed code-compliant roofs. He points out that the insurance savings are significant, as noted in a blog by Hope Thompson of the Natural Resources Defense Council. Homeowners’ interest in the program grows as they realize its benefits and avail financial assistance, reports Hardy.

While training is essential for contractors to adapt to these advanced roofs, the advantages go beyond reduced claims. They bolster the state's housing resilience post-disaster, diminishing the need for public resources. Hardy advises policyholders to evacuate during storms, reassuring them that their investment helps ensure they have intact homes to return to after adverse weather events.