It’s crucial to understand what your home is covered for in North Carolina. According to the Insurance Information Institute (III), 28% of Americans incorrectly believe homeowners insurance covers floods, and 29% incorrectly believe homeowners insurance covers earthquakes.

Don’t be caught unawares after a natural disaster. Read this guide—created by

car

and homeowners insurance comparison super app

Jerry

—to learn what natural disasters you’ll be covered for and how to respond if you need to make a claim in the Tar Heel State.

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What is homeowners insurance—and what does it cover?

Homeowners insurance policies protect homeowners financially from a slew of potential losses. This includes damage to the physical property and your possessions, plus loss of use coverage, liability coverage, and medical payments coverage if anyone is injured at your house.

There are different levels of homeowners insurance, which impacts what is covered and what perils you’re protected from.

Levels of homeowners insurance coverage

HO-1: This is the most basic (and least expensive) form of homeowners insurance. HO-1 only protects your actual home. The structure of your house will be covered, but the rest of the property and your possessions won’t be. Plus, the number of perils you’re covered for is reduced—just the basics like fire, lightning, and hail.

HO-2: A step up from HO-1, HO-2 adds coverage for your personal property.

HO-3: HO-3 is the most common form of homeowners insurance. You’ll be covered for the main structure, your personal property, any additional structures on the property (like a pool or shed), loss of use, liability, and medical payments.

Plus, HO-3 is an open perils policy for the main structure of your home. That means you’re covered for any peril except those specifically excluded on the policy. However, the other coverages on your policy are still just for named perils.

HO-5: This is the most comprehensive (and expensive) form of homeowners insurance. An HO-5 policy is an open perils policy for both your property and possessions.

Check out this intuitive guide that breaks down the different levels of homeowners insurance:

Policy type	What’s covered	Open perils?
HO-1	Main structure only	Named perils only
HO-2	Main structure, personal property, loss of use, liability, medical payments	Named perils only
HO-3	Main structure, personal property, loss of use, liability, medical payments	Main structure - open perils, personal property - named perils only
HO-5	Main structure, personal property, loss of use, liability, medical payments	Yes

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Home insurance terms you need to know

What perils are covered by homeowners insurance?

Perils are sudden, unexpected damages. Homeowners insurance does not cover your home for damage caused by age, wear and tear, or lack of upkeep.

You should be aware of what perils are named on your policy so you know exactly what you’re covered for. Here are common perils that will be named on most insurance policies:

Fire and lightning

Smoke

Volcanic eruption

Explosion

Riot or civil commotion

Hail and windstorms

Damage caused by vehicles

Damage caused by aircraft

Vandalism

Theft or malicious mischief

Falling objects (not usually covered by HO-1)

Weight of snow, ice, or sleet (not usually covered by HO-1)

Water overflow or discharge from plumbing (not usually covered by HO-1)

Water heater cracking (not usually covered by HO-1)

Damage from electrical current (not usually covered by HO-1)

Frozen pipes (not usually covered by HO-1)

Be aware of what isn’t on this list. For example, floods and earthquakes are not covered by homeowners insurance despite being prominent natural disasters.

Read on to find out which common North Carolina natural disasters you’ll be covered for.

Key Takeaway Be aware of what named perils you’re covered for on your homeowners insurance policy.

Does home insurance cover natural disasters in North Carolina?

North Carolina is a topographically diverse state, which means it is threatened by many different types of natural disasters. Since FEMA began recording disasters in the 1950s, North Carolina has declared 65 major disasters, along with immeasurable smaller disasters.

North Carolina homeowners are most threatened by hurricanes, severe storms, floods, wildfires, and, to a lesser extent, tornadoes.

Hurricanes

While hurricanes aren’t a regular occurrence, they’re extremely destructive when they make landfall. In fact, according to the

Insurance Information Institute

, North Carolina has potentially 267,802 houses at risk during a Category 5 hurricane.

Does homeowners insurance cover hurricane damage?: The answer is complex. While some aspects of hurricane damage are covered—like damage from wind and hail—other aspects, like flooding, are not. You’ll need additional coverage to be fully protected against hurricane damage.

MORE:

Does car insurance cover hurricane damage?

Storms

Severe storms are a regular occurrence in North Carolina. A bad storm can bring damage from heavy winds, lightning strikes, hail, and falling objects. All these events can cause some serious damage to your home.

Does homeowners insurance cover storm damage?: Yes. Lightning, hail, wind, and falling objects are all commonly named perils.

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Floods

Floods are usually caused by hurricanes or storms. However, normal rain or issues with drainage can also cause floods. Flood damage can devastate the home.

Does homeowners insurance cover floods?: No. You need to purchase a separate flood insurance policy to insure your home against floods.

MORE:

Does home insurance cover flooded basements?

Wildfires

Over half of North Carolina’s population live in a high fire risk zone. According to the

Insurance Information Institute

, North Carolina has the third-highest rate of wildfires in the United States.

While wildfires can happen year-round, mid-October through mid-December is the official wildfire season in North Carolina.

Does homeowners insurance cover fires?: Yes. Even the most basic homeowners policy will protect you against fire damage.

MORE:

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Tornadoes

The North Carolina Climate Office claims there were 1,387 tornadoes reported between 1950 and 2019. That’s an average of 29 tornadoes a year. Any house in a tornado’s path can be devastated by the heavy winds.

Does homeowners insurance cover tornadoes?: While not explicitly named, the damage caused by a tornado (wind, hail, falling objects) is covered by homeowners insurance.

MORE:

Does car insurance cover tornado damage?

Key Takeaway While your homeowners policy should cover you for storms, fires, and tornadoes, you may need additional coverage to be fully protected against floods and hurricanes.

How to file a home insurance claim

If your home is ever affected by a natural disaster (or any other named peril), it’s important to know how to file an insurance claim. This will save you time and, hopefully, help you get a larger payout.

Here’s the step-by-step guide to the claims process:

Document your losses, including damage to your home, your possessions, and any structures on your premises. For your possessions, take note of how much you paid for everything that was damaged.

Reach out to your insurer and inform them of your plan to make a claim.

Fill out all the paperwork sent by your insurer.

Meet with the adjuster sent by your insurer. You’ll walk through the house and note all the damage.

Get estimates for your house and property repairs.

Receive your payout and start rebuilding your home.

Being aware of how to file a claim before you need to can save you from added stress in the difficult time after a natural disaster.

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Worst claim mistakes

How to save money on homeowners and car insurance

According to the

Insurance Information Institute

, just 17% of homeowners compare multiple quotes before they renew their homeowners policy. That means the vast majority of homeowners are likely paying too much for their insurance coverage.

Comparison shopping is the only way to ensure you’re getting the best price for the coverage you want. Plus, comparison shopping doesn’t have to be difficult. In fact, with the help of insurance broker

Jerry

, you can find a new, cheaper policy in just a few minutes.

Jerry is an app created to simplify insurance shopping. After a fast, free sign-up, you’ll be given a long list of competitive insurance quotes to choose from. Plus, once you make your selection, Jerry helps you with all your sign-up, switchover, or cancellation paperwork.

Join now and see why Jerry is the number one insurance app in the App Store.

“
Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.