Best Cheap Homeowners Insurance Companies In Fayetteville, NC

State Farm offers the most competitive homeowners insurance policy in Fayetteville.

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Updated: 10 January 2024
Written by
Bob Phillips
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Parts of North Carolina have often been known to feel the hit of some severe weather, such as hurricanes and tropical storms which have had a substantial impact on many of its cities, including Fayetteville. In addition to damage caused by storms, the residents of Fayetteville are also at a much higher risk of falling victim to crimes committed against their homes, including vandalism.

Because of this, homeowners insurance in Fayetteville costs on average over $2,800 a year – which is significantly higher than the annual state average of $1,500. Fayetteville residents are naturally looking for the cheapest home insurance on the market, as well as a guaranteed solid coverage. We’ve took it upon ourselves to help the residents of Fayetteville and did some extensive research, and through this we discovered that State Farm offer the most competitive rates and the best policies for home insurance in Fayetteville, at an annual cost of $2,284.

State Farm are the best provider overall, yet individual circumstances could mean that other insurers could be better suited to you and your situation. Our analysis revealed that Universal North America offer the most competitive rates for newly built homes, whereas Allstate is better suited to homeowners who are in need of extra personal property coverage. We also found that USAA offers a great policy for military families, North Carolina Farm Bureau offers the best customer support, and Heritage is the best choice for homeowners with bad credit.

Cheapest Home Insurance Providers In Fayetteville, NC 2024

Cheapest Home Insurance, Fayetteville 2024

Compare The Cheapest Home Insurance Providers In Fayetteville, NC

Overall Rating Best For J.D. Power Rating (California) Average Annual Cost AM Best Rating Get A Quote
State Farm
4.9

Cheapest Overall

829

$2,284

A++

Instant Quote
Universal North America
4.6

Newly Constructed Homes

Not Rated

$1,159

B++

Instant Quote
Allstate
4.7

Extra Personal Property Coverage

815

$2,856

A++

Instant Quote
USAA
4.9

Military Families

884

$1,460

A++

Instant Quote
North Carolina Farm Bureau
4.5

Customer Service

Not Rated

$1,986

A

Learn more
Heritage
4.4

Poor Credit

Not Rated

$1,521

Not Rated

Instant Quote
Scroll to see comparisons

Our Methodology

In order to discover the insurer that offers the cheapest home insurance in Fayetteville, our team underwent an extensive analysis into the numerous findings obtained from multiple review websites, with some findings including rates from public filings taken by Quadrant Information Services. For this review, we’ve taken an average from these rates, however, it’s important to be aware that the rates of each company can vary, and their premium will alter depending on your own personal situation.

Also playing a part in this review is my own subjective opinion based on my time spent working as an insurance agent, and over thirty years of purchasing home insurance.

82

Quotes Analyzed

15+

Years Of Industry Experience

19

Brands Reviewed

40+

Research Hours

Reviews Of The Best Cheap Home Insurance Companies In Fayetteville, NC


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

When reviewing various home insurance providers in Fayetteville, N.C. and determining the cheapest, we found that the cheapest overall was State Farm, regardless of the size of the business and its high overheads that come with running several offices across North Carolina. Their cheap rates and fantastic policies, irrespective of the amount of dwelling coverage you choose, also make State Farm the best overall home insurer in Fayetteville.

The rate quoted above is for a $250,000 dwelling coverage limit, which is roughly the typical amount of coverage bought in North Carolina. For increased dwelling coverage limits, State Farm still beat the competition for having the lowest rates – going up to as high as $3 million for dwelling coverage.

Benefits & Drawbacks

Benefits
  • Multiple licensed agents in Fayetteville to assist with claims and offer support
  • Lowest rates of all the providers reviewed
Drawbacks
  • Less discounts available in comparison to other insurers
  • Discounts for first-time homebuyers unavailable
  • Discounts for policyholders who have gone an entire year without claiming are unavailable

Cheapest Overall Rates In Fayetteville

Company Rate Per Year
State Farm $2,284
Nationwide $2,586
USAA $1,983
Allstate $2,636
Erie $2,616

Best For Newly Constructed Houses

Overall Rating
4.6

Key Statistics

10/10 Affordability
9/10 Customer Reviews
8/10 Claims/payouts
8/10 Coverage Level

Why We Like Them

Universal North America offers the most competitive rates across all price categories, especially for newly constructed homes. Buying home insurance for a newly built home in Fayetteville is far cheaper than buying a policy for an older building. This is because newly built homes pose less of a risk to insurers. This is primarily due to the materials used in modern buildings being less prone to damage and being that they are much easier to replace if things start to go wrong.

For example, a newly built home in 2023 in Fayetteville, typically costs over $5,000 per year to insure. Compare this with the annual rate of $6,500 for a home built in 2000. Out of all the providers we analyzed, Universal North America came without a J.D. Power ranking for customer satisfaction (most probably due to its size), and the lowest AM Best Rating (B++ Very Good).

Benefits & Drawbacks

Benefits
  • Lowest rates in Fayetteville for insuring newly constructed houses
  • Large number of policyholders in North Carolina
Drawbacks
  • Lowest AM Best rating of all the insurers we researched
  • No rating by J.D. Powers for customer satisfaction

Cheapest Overall For Newly Built Homes

Company Rate Per Year
Universal North America $1,159
USAA $1,424
Auto Owners $1,285
State Farm $1,629
Allstate $1,892

Best For Extra Personal Property Coverage

Overall Rating
4.7

Key Statistics

10/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

While analyzing providers and seeking the cheapest home insurance policies in Fayetteville, Allstate stood out as being the best home insurance provider for extra personal property coverage. Allstate offer highly competitive rates for standard dwelling coverage, and additionally for homeowners with houses that come to a much higher value, who pay more for personal property.

A standard homeowners insurance policy does provide a certain degree of coverage for personal belongings, although it isn’t quite enough for policyholders with expensive contents such as artwork, antiques, and electronics. In Fayetteville, it costs a policyholder an annual rate of $6,565 for personal property limits of $100,000, yet this rises to $7,555 annually when limits are raised to $250,000.

Benefits & Drawbacks

Benefits
  • Consistently positive customer satisfaction reviews from J.D. Powers
  • Strong Allstate agent presence in Fayetteville for both sales and service
  • Multiple discounts available on policies
Drawbacks
  • Below average J.D. Powers homeowners’ insurance customer satisfaction score

Best For Extra Personal Property Coverage Rates In Fayetteville

Company Rate Per Year
Allstate $2,856
State Farm $2,475
Nationwide $2,794
Universal North America $1,768
Auto-Owners $1,946

Cheapest For Military Families

Overall Rating
4.9

Key Statistics

10/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Statistics show that North Carolina ranks fourth in the United States for most active military members. A separate study carried out in 2018, by Carolina Demography, found that there were almost 700,000 veterans living in The Tar Heel State. For residents who fall into either of these categories and are looking to buy home insurance can in fact become a member of USAA and apply for a home insurance policy.

Despite only being an option for a specific group of Fayetteville residents, USAA always ranks high when it comes to customer satisfaction, as well as having a high percentage of returning customers who renew their policies. Being a member of a military community is important to several service members, regardless of whether they are active or not, and USAA has made a name for itself as being a reputable insurer with excellent customer support, including the competitive rates on offer to its most loyal customers.

Benefits & Drawbacks

Benefits
  • Coverage on offer for high-value homes
  • Membership include access to other USAA services, such as banking
  • Additional coverage available for replacing military uniforms
Drawbacks
  • Limited in its demographic
  • Obtaining a quote requires an active USAA membership

Cheapest Rates For Military Families

Company Rate Per Year
USAA $1,460
State Farm $2,816
Universal North America $3,184
Travelers $3,897
Allstate $4,193

Best For Customer Service

Overall Rating
4.5

Key Statistics

9/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
8/10 Coverage Level

Why We Like Them

For residents in Fayetteville who own a home and are looking to purchase an insurance policy with a local company, seeking good customer support, North Carolina Farm Bureau came out on top for customer service. North Carolina Farm Bureau is the second biggest home insurance provider in the state, coming with a strong network of licensed and local agents dedicated to serving the residents of Fayetteville and North Carolina.

North Carolina Farm Bureau does not have an online quote tool available, however, they do have an AM Best financial strength rating of A (Excellent). A fantastic reward to have, especially when a hurricane hits and you need to file a claim.

Benefits & Drawbacks

Benefits
  • Excellent customer service provided by local agents
  • Most competitive rates across the state
Drawbacks
  • Cannot receive a quote online
  • Few discounts available to its customers

Best For Customer Service

Company Rate Per Year
North Carolina Farm Bureau $1,986
Universal North America $3,184
Travelers $3,897
Allstate $4,193
MetLife $5,876

Best For Poor Credit

Overall Rating
4.4

Key Statistics

9/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

North Carolina is different in that it allows your credit score to be used by providers to calculate your rates, meaning this is also applicable to residents of Fayetteville. If you have a poor credit score, then your rates will be higher – if you have a good credit history, then rates tend to be lower.

For instance, a homeowner could pay $11,000 annually for their insurance if they have a bad credit history, yet a homeowner with a good credit history will pay around $6,500. If your credit score improves throughout your time spent as a policyholder, then an insurer may recalculate and reassess your premiums.

Benefits & Drawbacks

Benefits
  • Lowest rates for people with a bad credit history
Drawbacks
  • No rating by either AM Best or J.D. Powers
  • Their ability to financially withstand multiple claims at one time is unknown

Cheapest Rates For People With Poor Credit

Company Rate Per Year
Heritage $1,521
Universal North America $2,567
Nationwide $3,275
USAA $4,068
State Farm $4,744

How To Decide On The Best Home Insurance Provider For You

When deciphering the most affordable insurance in Fayetteville, it’s recommended that you take the time to research all of your options. There are many insurers who offer cost-friendly policies with good coverage. We selected six providers in Fayetteville that could offer you a policy with solid protection for your home and its contents. Here are a few things to consider when deciding on the best, and cheapest, home insurance in Fayetteville for you.

Consider your property: When deciding on a policy, you will be asked to provide very specific information on the home in question. This includes details such as the age of your home, the materials used for the building, and the age of its roof. It’s important to have this information available when looking for accurate quotes.

Consider insurers: Always choose wisely when it comes to buying insurance, because you want to make sure that the company can meet your needs. You should start by looking at a select number of companies and check out their website. If you prefer to deal with your business online, make sure that the company’s site allows you to perform tasks such as paying your premium, and filing claims. If you prefer an in-person conversation, opt for insurers who have local agents in Fayetteville.

Gather quotes: We recommend that you get quotes from a few providers to ensure that you’re making an informed decision. You can receive quotes either online or through an agent, depending on the provider. When doing so, make sure that the requests are identical so that you can compare their rates sufficiently.

Choose the company that best suits your needs: Every individual’s circumstances are unique, and therefore some insurers will be more appropriately suited to your needs. Some insurers may offer the best discounts, whereas another may offer a better customer experience. It’s important to do your own research and compare each of the quotes to help you decide which insurer is best for you and your needs.

Largest Home Insurance Companies In North Carolina

Rank Insurance Company Direct Premiums Written
1 State Farm $513 Billion
2 North Carolina Farm Bureau $377 Billion
3 USAA $130 Billion
4 Allstate $122 Billion
5 Erie $103 Billion

Average Cost Of Home Insurance In Fayetteville, NC

When compared to the average rates in North Carolina and the whole of the United States, Fayetteville has some of the highest premiums. Fortunately, all of the major providers, including other much smaller companies, operate in North Carolina. Here are the average annual costs for five of the major home insurers in Fayetteville.

Company Rate Per Year
State Farm $2,284
Nationwide $2,586
USAA $1,983
Allstate $2,636
Erie $2,616

Average Cost Of Home Insurance By ZIP Code (Coastal North Carolina)

Zip Code Average yearly cost
28574 $10,525
28516 $19,146
28540 $10,421
28478 $10,356
28462 $11,135

Average Cost Of Home Insurance In North Carolina By Coverage Amounts

Dwelling coverage amount Average yearly cost
$100,000 $686
$200,000 $1,111
$300,000 $1,636
$400,000 $2,121

Average Cost Of Home Insurance In North Carolina By Deductible Amount

Deductible amount Average yearly cost
$500 $1,862
$1,000 $1,614
$2,000 $1,535

How To Get An Online Home Insurance Quote In Fayetteville

Getting an online quote for home insurance in Fayetteville can be done in these four straight-forward steps:

Step One: Determine how much coverage is needed. If you don’t quite know how much personal property liability protection is needed, walk through your home, and take a detailed inventory. Taking a video of your personal property can also be helpful if you ever need to file a claim.

Step Two: Choose three providers to get quotes from. You can contact three insurers and ask for a quote, either by asking an insurance agent to get them for you, or by using an online home insurance quote tool.

Step Three: Make sure you’re receiving an apples-to-apples price from each provider. The coverage limits and deductible should be the same in order for you to make a well-informed decision.

Step Four: Decide which insurance provider you think will best suit your requirements, and then complete the application process.

Factors That Impact The Cost Of Your Home Insurance Policy In Fayetteville

Home insurance companies use a number of different factors to determine how much of a risk they believe you will be. The higher the risk they feel you are, the higher your premiums will be. Listed below are the factors that can impact your rates.

Location. When calculating rates, home insurance companies will review factors as specific as your ZIP code. Therefore, if you live in an area of Fayetteville where more claims are submitted, the insurer will charge you more.

Coverage amount. The value of your home and its contents and how much they are insured for will affect your rates, meaning you will pay more if the value is higher.

Credit history. Home insurance companies in North Carolina can use your credit score to help calculate your rates. Insurers tend to charge more for poor credit as statistically a poor credit history means a person is more likely to submit a claim.

Claims history. If you’ve filed a claim previously, insurance providers have found that you’re more likely to file a claim in the future.

Your home’s age. Insurers will consider the age of your home, as the older the building, the more likely it is that aging materials will lead to damage to electricals or plumbing. If these systems are old, then it could pose a fire or water hazard – ultimately leading to larger claims.

Deductible. If your deductible is higher, then your premium will be lower, however, it’s important to select a deductible that is affordable to you.

For Fayetteville residents, there is a high risk of damage to their homes due to the threat of tropical storms and hurricanes. As a result of this, home insurance rates in Fayetteville are some of the highest in the state.

North Carolina Home Insurance Laws To Be Aware Of

Home insurance is not a necessity for homeowners in the state of North. However, anyone with a mortgage, or belonging to a Homeowners Association (HOA) may be required to get it.

In The News

WTVD in Raleigh reports that North Carolina homeowners are seeing their insurance rates increasingly rise, partly down to the cost of lumber being up 21% over the last year, and roof costs being 22% higher. An early 2023 report predicts a 9% increase in home insurance premiums in 2023.

Information About Fayetteville

Fayetteville is a city in Cumberland County, North Carolina. Most famous as being the home of Fort Liberty, which is a major U.S. Army installation northwest of the city. Fayetteville has been rewarded the All-America City Award three times, by the National Civic League. The city of Fayetteville is the 6th most populated city in the state of North Carolina, with a population of over half a million people (as recorded in 2020).

The Fayetteville metropolitan area is the largest in southeastern North Carolina, and the fifth largest in the state. Places to visit in Fayetteville include the Botanical Garden of Ozarks, Lake Fayetteville Park, and Arcadia Retrocade.

Home Insurance Discounts In Fayetteville

Although home insurance rates are high in Fayetteville, there are several discounts that homeowners are encouraged to take advantage of. Take these into account when discussing options with your insurance agent as they could save you a lot of money.

Your house may have features that can save you money, such as:

New or renovated home discount. Newly built or recently renovated homes are quite often eligible for discounts due to their upgraded systems being less likely to fail.

Disaster preparedness discount. If you live in an area such as Fayetteville that’s prone to storms, your provider may offer you a discount if you take preventative steps to reduce risks of damage. Implementing things such as storm shutters, reinforcing a door, and shatterproof glass can reduce the risk of major damage from high winds.

Safety and security discounts. This applies to devices such as smoke detectors, fire extinguishers, fire alarms, burglar alarms, sprinklers, water shut-off devices, and deadbolts on exterior doors.

Proximity to a fire hydrant or fire department. Your provider may offer a discount if you live close-by to fire-damage control resources, such as a fire hydrant.

Roof age discount. Roof repair costs are significant loss-leaders for providers. USAA, for example, offer discounts based on the age of your roof.

Military discounts. If you are an active military member, a veteran, or the spouse or child of a military member, you may be able to receive a discount.

Employment, organization, and association discounts. Your provider may offer a discount for certain professions, such as educators. You may also qualify if you are a union, organization, or professional association member.

Seniors or retirees. Some home insurance providers offer a price break if you’re retired or over the age of 55 and working part-time. To qualify, the house must be your primary residence, over the age of 55, and work outside of your home for less than 24 hours a week.

Bundling discount. You may receive a discount for having several policies with the same provider.

You can also save money on your home insurance by increasing your deductible (to an affordable limit) and maintaining a good credit score.

FAQs

How much is homeowners insurance in Fayetteville?

Homeowners insurance in Fayetteville averages over $2,800 annually, compared to the state average of $1,500. Our findings revealed that in Fayetteville, State Farm offers the cheapest and best insurance at $2,807 per year.

Why is homeowners insurance so expensive in Fayetteville?

Home insurance rates are higher in Wilmington due to its closeness to the coast, and its history of large claims caused by storms.

Who is the largest home insurer in Fayetteville?

State Farm is the biggest insurer in the United States, including Fayetteville.

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