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North Carolina Homeowner Insurance – Insuring the Uninsurable

Before you buy homeowners insurance in the state of North Carolina, do your homework. It will save you money to be informed. The North Carolina Department of Insurance website: http://www.ncdoi.com/ provides great information regarding purchasing and the pricing homeowners insurance. They offer the ability for you to quote your own homeowners insurance policy. This quote will serve as a guide when speaking with insurance agents. Keep in mind that the quote is only a point of reference as insurance companies apply credits and debits depending on the risk and other underwriting factors.

In the event you are unable to obtain coverage through a conventional insurer you have the option of approaching the FAIR (Fair Access to Insurance Requirements) plan. Administered by North Carolina Joint Underwriting Association (NCJUA), the FAIR plan was created in 1969 to provide property insurance for those who were unable to get insurance through conventional markets. The coverages provided are not as broad as those offered in the standard market and the premiums tend to be higher.

Almost all properties are insurable by the FAIR plan. If for some reason there are hazardous conditions that are discovered while the house is inspected, the homeowner is given a specified period of time to correct the hazard. After the hazard is corrected, then the FAIR plan will provide coverage. Mandatory $500 deductible or higher

The FAIR plan provides coverage for the entire state of North Carolina except for the barrier islands adjacent to the Atlantic Ocean. The barrier islands are covered by a different program called the BEACH Plan. The BEACH Plan is administered by the North Carolina Insurance Underwriting Association.

The BEACH plan requires any property built after 1/1/1970 to be in compliance with North Carolina building codes. Coverage is generally close to the actual cash value of the building (not replacement cost) and is provided for windstorm and hail only unless the house is located in one of North Carolina’s 18 coastal counties where the BEACH plan will provide homeowners insurance.

Related Topics:

Lowering Your Homeowner Insurance Rates

Managing Your Home to Control Your Rates

Self Improvement Can Translate into Rate Improvement

About the author: Felicia A. Williams is a former insurance broker who is now a freelance writer.

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