North Carolina expanded auto insurance surcharges for policies issued or renewed on or after July 1, 2025. As of October 1, 2026, you have 30 days from the date on a DMV lapse notice to respond. If you don't, DMV can revoke the plate and add civil penalties.

What changed with the inexperienced operator surcharge?

Insurers have long added a premium surcharge for drivers with little experience. Before July 1, 2025, that surcharge generally applied for the first three years of driving. For drivers first licensed on or after that date, it applies for the first eight years.

The Department of Insurance says the extra years are cheaper than the early ones. Surcharges for years four through eight are lower than years one through three, and they step down as the driver gains experience. If you were already licensed before July 1, 2025, this eight-year rule is aimed at new drivers, not at rewriting the clock on an older license. Ask your agent which rule applies to each driver on your policy.

How long do ticket and SDIP surcharges last now?

North Carolina uses the Safe Driver Incentive Plan, or SDIP, to assign insurance points after certain moving violations. A conviction that produces insurance points has typically raised the premium for three years. That changed for some convictions on or after July 1, 2025.

• Convictions that carry four or more SDIP points, other than certain high-speed tickets, are now surcharged for five years instead of three.
• The exceptions for that five-year rule are speeding more than 75 mph when the posted limit is under 70, and speeding more than 80 mph when the posted limit is 70 or higher. Those high-speed cases are treated separately.

Two other lookback periods also grew from three years to five for events on or after July 1, 2025:

• Speeding 10 mph or less over the posted limit can still be waived for insurance points if you have no other moving conviction, other than a prayer for judgment continued, during the lookback. School-zone speeding is not included in that waiver.
• A prayer for judgment continued, or PJC, on a moving violation can also be waived if no one in the household has another PJC during the lookback.

The Department has noted that the General Assembly later considered clarifying whether older tickets from before July 1, 2025 still use a three-year lookback. If you have a mix of older and newer convictions, ask your agent or the Department's Consumer Services line how your record is being counted.

What happens if your insurance lapses?

Every vehicle with a valid North Carolina registration must have continuous liability insurance from a company licensed in the state. Insurers have to tell DMV if a policy is canceled or coverage lapses for any reason. DMV then sends a liability insurance termination notice to the registered owner.

As of October 1, 2026, you have 30 days from the date printed on that notice to respond. Before that date the window was 10 days. If you miss it, DMV can revoke the plate. You can also face civil penalties, late fees, interest, and collections.

The civil penalty for relicensing after a revocation is $50, $100, or $150, based on how many prior paid lapses the owner has had in the previous three years. There's also a $50 restoration fee when you renew the registration.

How do you clear a lapse notice if you actually had coverage?

If the insurance never lapsed, have your North Carolina-licensed insurer send DMV an electronic Certificate of Insurance, form FS-1, showing continuous coverage. Once DMV has the FS-1, it should update the record and clear the fines. Call 919-715-7000 or use DMV's contact form to confirm it's done.

If you don't pay the penalties, the plate can be revoked and seized, and more penalties can be added.

When should you cancel a policy?

Don't cancel North Carolina liability insurance until you've surrendered the plate. That includes cars you're storing for a long stretch. If the plate is lost or stolen, complete form MVR-18A, the License Plate Turn In Verification, instead of just canceling the policy.

You can turn in a plate at a license plate agency, mail it to DMV's Renewal Title & Plate Unit, or use a drop box at Raleigh Central Services. Ask for a receipt if you need one. Drop boxes may not give you one.

If you've already moved and registered the same vehicle in another state within 30 days of the North Carolina policy ending, DMV can waive the monetary penalty and restoration fee. You'll need a copy of the new registration, and you'll need to return the North Carolina plate or file the replacement-plate form showing it was lost, stolen, or destroyed.

FAQ

How long do I have to answer a DMV insurance lapse notice?

As of October 1, 2026, you have 30 days from the date printed on the notice. Before that, the deadline was 10 days.

How much is the civil penalty for an insurance lapse in North Carolina?

It's $50, $100, or $150, based on the number of prior paid lapses in the previous three years, plus a $50 restoration fee when you renew the registration.

Does the eight-year inexperienced driver surcharge apply to everyone?

No. The Department of Insurance says it applies to drivers first licensed on or after July 1, 2025. Drivers licensed earlier were under the three-year rule. Confirm with your agent how each driver on the policy is being rated.

What is an FS-1?

It's a Certificate of Insurance your North Carolina-licensed insurer sends electronically to DMV to show that coverage was in force. If you received a lapse notice by mistake, the FS-1 is what clears it.

Next step

If a surcharge or a lapse notice has shown up on your policy, talk with a licensed local agent about what's driving the premium and whether your coverage is continuous. Bring the DMV notice and your declarations page so you can sort out the record before a plate is revoked.

Sources: N.C. Department of Insurance, changes to automobile insurance rating effective July 1, 2025; NCDMV, vehicle insurance requirements.

North Carolina auto policies issued or renewed on or after July 1, 2025 must carry at least $50,000 in bodily injury coverage per person, $100,000 per accident, and $50,000 in property damage coverage. That's 50/100/50. Underinsured motorist coverage is now included on those policies too.

What do 50/100/50 limits actually pay for?

Each number covers a different slice of someone else's loss after a crash you're liable for. Your own car and your own injuries aren't part of the liability limits.

• $50,000 bodily injury, one person. The most your insurer will pay for one injured person's damages, such as medical bills and lost wages.
• $100,000 bodily injury, one accident. The cap for everyone hurt in a single crash, no matter how many people that is.
• $50,000 property damage. Repairs to the other driver's car, a fence, a storefront, or a light pole.

Those figures replaced the old 30/60/25 minimums. If your policy still showed 30/60/25 before July 1, 2025, it should have moved to 50/100/50 at renewal. A policy written to the old minimum can stay at those limits only until it renews. After that, the higher floor applies.

The coverage has to come from an insurer licensed to do business in North Carolina. The Division of Motor Vehicles does not accept an out-of-state auto policy as proof of liability insurance on a vehicle with a North Carolina registration.

Is the minimum enough for most drivers?

That's a judgment call, but the math is worth doing. A multi-car crash on I-40 or I-85 can injure several people at once, and $100,000 spread across two or three hospital bills doesn't go far. A newer pickup or EV can cost more than $50,000 to repair on its own.

North Carolina is an at-fault state for most auto claims. If you cause a crash and the damages run past your limits, the injured people can come after you for the rest. That's why many people look at 100/300/100 or higher, and why people with a house or savings often add an umbrella policy. Getting quotes at two or three levels is the simplest way to see what the extra protection costs.

What changed with underinsured motorist coverage?

Before July 1, 2025, policies written at the old 30/60/25 minimums did not include underinsured motorist coverage, often called UIM. Starting with policies issued or renewed on or after that date, UIM is included.

The Department of Insurance also spelled out how UIM works under the new law:

• Whether the other driver is "underinsured" is based on the injured person's total damages, not on a simple comparison of policy limits.
• Your UIM payment is not reduced by a setoff against the other driver's liability coverage, except for workers' compensation as the statute allows.
• If you have UIM on more than one policy, the amount available is the sum of the highest UIM limit on each policy, again without a setoff except as the statute specifies.

Uninsured motorist coverage, which pays when the at-fault driver has no insurance, has long been required as well. Read both lines on your declarations page so you know what you have.

When do you have to show proof of insurance?

Every vehicle with a valid North Carolina registration must have continuous liability insurance from a company licensed in the state. That's G.S. 20-309. Insurers notify DMV if a policy is canceled or coverage lapses. If that happens, DMV sends a termination notice to the registered owner.

As of October 1, 2026, you have 30 days from the date printed on that notice to respond. Before that date the window was 10 days. If the coverage never actually lapsed, your insurer can send DMV an FS-1 certificate of insurance and the fines should be cleared. Call DMV at 919-715-7000 to confirm the record is fixed.

Don't cancel a North Carolina policy until you've turned in the plate. If the plate is lost or stolen, file form MVR-18A. Canceling first can trigger a lapse penalty even if the car is sitting in a driveway.

What else should you look at besides liability?

Liability is the legal floor. Other coverages are optional unless a lender requires them, and they're worth reviewing at renewal:

• Collision. Pays to fix your car after a crash, regardless of fault, minus your deductible.
• Comprehensive. Covers theft, hail, falling trees, flooding, and hitting a deer.
• Medical payments. Helps with your and your passengers' medical bills after a crash, regardless of fault.
• Rental reimbursement and towing. Small add-ons that matter when your car is in the shop.

How do you check what your policy says right now?

Pull up your declarations page, usually the first page of the policy or a PDF in your insurer's app. Look for:

• Bodily injury liability written as two numbers, like 50/100 or 100/300.
• Property damage liability.
• Uninsured and underinsured motorist limits.
• Collision and comprehensive deductibles.
• The policy period, so you know when it renews.

If you're switching companies, start the new policy before the old one ends. Even a one-day gap can count as a lapse if DMV is notified.

FAQ

What is the minimum car insurance in North Carolina now?

For policies issued or renewed on or after July 1, 2025, the minimum is $50,000 per person and $100,000 per accident in bodily injury liability, plus $50,000 in property damage liability, often written as 50/100/50. Underinsured motorist coverage is included.

Can I keep an out-of-state auto policy after I move to North Carolina?

No. DMV requires liability insurance from a company licensed to do business in North Carolina. Out-of-state policies are not accepted on a vehicle with a North Carolina registration.

What if my policy still shows 30/60/25?

Those were the minimums for policies issued or renewed before July 1, 2025. At the next renewal the policy has to meet 50/100/50. Ask your insurer or agent if you're not sure which set of limits you have today.

Does 50/100/50 pay to fix my own car?

No. Those limits pay for injuries and property damage you cause to other people. Collision and comprehensive, if you buy them, are the coverages that pay for damage to your own vehicle.

Next step

Before your next renewal, talk with a licensed local agent about how your liability and UIM limits compare with what you own. Ask for side-by-side quotes at 50/100/50 and 100/300/100, and ask how uninsured and underinsured motorist coverage is set up on your policy today.

Sources: N.C. Department of Insurance, changes to automobile insurance rating effective July 1, 2025; NCDMV, vehicle insurance requirements.

A standard North Carolina homeowners policy does not cover flood damage. If you want that protection, you have to buy a separate flood policy, usually through the National Flood Insurance Program or a private insurer. Most NFIP policies have a 30-day waiting period, so buying coverage when a storm is already on the map is often too late.

What counts as a flood, and why doesn't homeowners cover it?

Homeowners insurance is built to cover risks like fire, theft, and certain kinds of wind or hail, subject to your deductibles and exclusions. Flood is treated as a separate peril. The Department of Insurance is direct about it: homeowners policies do not cover flood damage.

The federal NFIP covers direct flood and flood-related damage, including mudslide and erosion, in communities that take part in the program. North Carolina communities that join agree to adopt zoning rules that limit future building in flood-prone areas. If your town participates, you can generally buy an NFIP policy even if you are not in a mapped high-risk flood zone.

That's an important point. The Department warns that you shouldn't assume you're safe just because your house is not in a designated floodplain. Heavy rain, a river overflowing its banks, or storm surge can flood homes well outside the official high-risk zones. A lender may require flood insurance if the home is in a mapped floodplain. If it isn't, the requirement may not apply, but the water risk can still be real.

How long is the waiting period?

Most NFIP policies have a 30-day waiting period before coverage starts. There are exceptions, including some purchases tied to a loan closing, but you shouldn't count on an exception unless your agent or the program confirms it.

The Department and FEMA both stress the same practical advice: don't wait until a storm is approaching. If you need coverage in place for hurricane season, start the application well before you need it.

FEMA also offers a way to get a personalized NFIP quote and, in many cases, buy a policy directly through FloodSmart.gov. You can still work with an insurance agent if you prefer. For more information, NFIP can be reached at 1-800-427-4661.

What do NFIP policies typically cover, and what do they leave out?

Standard NFIP dwelling coverage is often discussed in two parts: the building and the contents. Building coverage can insure the structure and certain items that are built in. Contents coverage, if you buy it, can insure personal property inside the home. Those two limits are chosen separately, and contents coverage is not automatic just because you insured the building.

Typical NFIP limits for a home are up to $250,000 for the building and up to $100,000 for personal property. If your house would cost more than that to rebuild, talk with an agent about whether excess flood coverage is available from a private insurer.

NFIP policies also have important exclusions. They generally do not cover:

• Additional living expenses if you have to leave the house, such as hotel bills.
• Property and belongings kept outside, like a deck set or a shed's contents, in many cases.
• Certain basement contents and improvements, which are limited or excluded.
• Vehicles, cash, and similar items.

Read the policy or an official summary before you assume a finished basement or a detached structure is covered. If you need living-expense coverage after a flood, you may have to look at a private flood policy or a separate arrangement. Don't assume your homeowners additional living expense coverage will fill that gap for a flood.

How do you decide whether to buy it?

Start with your flood zone and your actual risk, not just the lender's requirement:

• Look up your address on FEMA's flood map service and ask your agent or a floodplain official what the zone means.
• Think about nearby creeks, rivers, and drainage, and about storm surge if you're near the coast.
• Ask what it would cost to repair floors, walls, and a heating system after a few feet of water.
• Compare an NFIP quote with any private flood quote, including deductibles, waiting periods, and living-expense coverage.

A policy that costs a few hundred or a few thousand dollars a year is easier to judge once you've priced a single interior rebuild.

FAQ

Does a standard homeowners policy in North Carolina cover flood damage?

No. The Department of Insurance says homeowners insurance policies do not cover flood damage. You need a separate flood policy.

How long do I have to wait for NFIP coverage to start?

Most NFIP policies have a 30-day waiting period. Some exceptions exist, including certain loan-related purchases. Confirm the start date in writing when you buy.

Do I need flood insurance if I'm not in a floodplain?

You may not be required to buy it by a lender, but you can still flood. The Department advises people not to assume they're safe just because the home is outside a designated floodplain.

Can I buy flood insurance directly from the federal program?

Yes. FEMA's FloodSmart.gov tool lets you get a quote and, in many cases, purchase an NFIP policy directly. You can also buy through an insurance agent.

Next step

Ask a licensed local agent to quote a flood policy on your address, including the waiting period and whether contents and additional living expenses are covered. If you live near water or in a mapped flood zone, don't wait for a named storm to start that conversation.

Sources: N.C. Department of Insurance, flood insurance; National Flood Insurance Program, buy a flood insurance policy; N.C. Department of Insurance, November 10, 2026 flood insurance notice.

North Carolina homeowners base rates rose an average of 7.5% on June 1, 2025 and another 7.5% on June 1, 2026 under a state settlement. Consent to rate can still put your premium above the approved manual rate, and that increase has to be disclosed in bold type on or before the declarations page.

What did the 2025 rate settlement actually do?

In January 2024 the North Carolina Rate Bureau, which represents homeowners insurers and is not part of the Department, asked for an average 42.2% increase, with proposed increases of up to 99.4% in some territories. On January 17, 2025, Insurance Commissioner Mike Causey announced a settlement that replaced that request with two smaller statewide average increases:

• 7.5% on June 1, 2025.
• 7.5% on June 1, 2026.
• A maximum of 35% in any territory.
• No new Rate Bureau request to raise rates again before June 1, 2027.

The Department said the agreement would save homeowners about $777 million over two years compared with what the companies had asked for. It also said the rates were meant to leave insurers with enough money to pay claims after recent disasters and higher reinsurance costs.

Those figures are statewide averages and territory caps for the approved base rate. Your own renewal can still move more or less than 7.5% because of your coverage, deductible, claims history, and whether consent to rate applies.

What is consent to rate?

Consent to rate, often shortened to CTR, is how an insurer charges more than the manual rate the Commissioner has approved. In North Carolina it applies to private passenger auto physical damage coverage and to residential property coverage, including homeowners and dwelling fire policies.

It used to require your signature on a form. That changed on January 1, 2019. Insurers no longer need a signed CTR form for policies effective on or after that date. Instead, they have to give you a disclosure statement whenever the premium is higher than the premium based on the approved manual rate.

The disclosure has to:

• Appear on the declarations page, or on a separate page before the declarations page.
• Be in at least 14-point type, or larger than the rest of the document, whichever is bigger.
• Be bold and capitalized.

You "consent" by paying the premium. The Department's FAQ is clear that the law did not raise rates by itself, and it did not take away your ability to shop or to decline the policy. It was meant to keep people from losing coverage because a signed form never made it back to the company.

How do you tell if you're paying a consent-to-rate premium?

Look at the front of your policy. If the insurer is charging more than the approved rate, that bold, capitalized statement should be on or just before the declarations page. If you don't see it and the premium looks higher than you expected, ask the company or your agent to show you the approved manual premium next to what you were billed.

Consent to rate is not the same thing as the Rate Bureau's statewide filing. The settlement limited the approved base-rate increase. CTR is a company-by-company charge above that approved rate. You can still compare quotes, raise a deductible, or ask about credits that apply to your house.

The Department also collects and publishes aggregated residential consent-to-rate data by territory, which can help you see how common those higher rates are where you live.

What should you do at renewal?

When the renewal arrives, read the declarations page and the CTR disclosure, if there is one, before you pay. Then:

• Compare the new premium with last year's, and ask what part is the approved rate change and what part is consent to rate.
• Get at least one other quote, including from an agent who can check more than one company.
• Ask whether a higher deductible, updated replacement-cost coverage, or mitigation credits would change the price.
• If you live on the coast, confirm whether wind is in the policy or written separately, because that affects both the premium and the deductible.

A rate increase can be legal and still be worth shopping. The disclosure is there so you can see that you're being asked to pay more than the approved rate, not so you have to accept the first number you're given.

FAQ

Did every North Carolina homeowner see a 7.5% increase?

No. 7.5% was the average statewide base-rate increase in each of the two years. The settlement capped any territory at 35%. Your own bill can differ because of coverage, claims, deductibles, and consent to rate.

When can the Rate Bureau ask for another homeowners increase?

The January 17, 2025 settlement bars the Rate Bureau from seeking another increase before June 1, 2027.

Do I have to sign a consent-to-rate form?

Not for policies effective on or after January 1, 2019. The insurer has to give you a bold, capitalized disclosure on or before the declarations page, and payment of the premium is treated as consent.

Does consent to rate apply to auto liability?

The Department's CTR FAQ says the rule covers private passenger auto physical damage and residential property. Auto liability is generally outside that CTR law, with a narrow exception involving certain high limits tied to an umbrella policy.

Next step

At your next renewal, sit down with a licensed local agent and compare the approved manual premium with what you're being charged. If a consent-to-rate disclosure is on the page, ask what other companies would charge for the same coverage on your house.

Sources: N.C. Department of Insurance, January 17, 2025 homeowners rate settlement; N.C. Department of Insurance, Consent to Rate FAQs.

Medicare Open Enrollment for 2027 coverage runs from October 15 through December 7, 2026. Changes made by December 7 take effect January 1, 2027. In North Carolina, free SHIIP counselors can help you compare Medicare Advantage and Part D plans. They don't sell insurance, and they don't work on commission.

Why is this enrollment window worth using?

Insurance Commissioner Mike Causey, in an October 14, 2026 notice, urged people with Medicare not to assume their current plan is still the best fit. Many plans had signaled increases, some of them large. Even if you're happy with this year's Medicare Advantage or Part D plan, another plan in your county may cover your doctors or prescriptions at a better price.

Open Enrollment is the annual period when most people with Medicare can switch Medicare Advantage plans, switch or join a Part D drug plan, or go back to Original Medicare. Missing December 7 can mean waiting until the next yearly window, unless you qualify for a special enrollment period.

The window lasts eight weeks. That's enough time to compare, but it goes quickly if you wait until the first week of December, especially if you need a SHIIP appointment.

What is SHIIP, and what can a counselor do?

SHIIP is the Seniors' Health Insurance Information Program, a division of the North Carolina Department of Insurance. Counselors give free, unbiased information about Medicare, Medicare prescription drug coverage, Medicare Advantage, long-term care insurance, and other health insurance questions. They can also help you find out whether you qualify for Medicare savings programs that lower premiums or cost sharing.

They are not licensed insurance agents. They don't sell, endorse, or oppose any product, plan, or company. If you have a question about a specific plan you already have, the Department says to call your agent or the insurance company. If you want an independent comparison, SHIIP is the state's official place to get that help.

You can:

• Meet one-on-one with a local SHIIP office.
• Call 1-855-408-1212 on weekdays from 8 a.m. to 5 p.m.
• Visit the Department of Insurance SHIIP page for more information.

Bring a list of your doctors, your prescriptions and doses, and your Medicare card. The more complete that list is, the more useful the comparison will be.

What other official tools should you use?

SHIIP is the state resource. Medicare also has its own tools, and the Department points people to them:

• Compare options and enroll at medicare.gov.
• Review the Medicare & You 2027 handbook that was mailed to people with Medicare.
• Call 1-800-MEDICARE (1-800-633-4227), 24 hours a day. TTY users can call 1-877-486-2048.

A trusted licensed agent can also walk you through plan choices. Just know whose role is which: an agent can sell a plan, and a SHIIP counselor cannot. Using both is fine. Using only a sales pitch, without checking medicare.gov or SHIIP, is how people end up in a plan that drops their specialists or raises their drug costs.

Don't mix this up with the Health Insurance Marketplace

Medicare Open Enrollment and Marketplace Open Enrollment are different programs with different dates. The federal Marketplace, at HealthCare.gov, is for people who need individual health coverage and are not on Medicare. That yearly window generally runs from November 1 to January 15, and you usually need to enroll by December 15 for coverage that starts January 1.

If you're already on Medicare, watch for marketing that blurs the two. A plan that sounds like "open enrollment" on a postcard may be selling a Medicare Advantage policy, a Marketplace plan, or something else. When in doubt, check the dates against the official Medicare window or call SHIIP before you give out your Medicare number.

If you're on Medicare, you generally don't use the Marketplace to change Medicare coverage. If someone in your household needs Marketplace coverage while you're on Medicare, treat those as two separate tasks with two separate deadlines.

What should you compare before you switch?

A lower premium is only part of the picture. When you sit down with a counselor or an agent, ask about:

• Whether your doctors and hospitals are in the plan's network for 2027.
• The deductible, copays, and out-of-pocket maximum.
• Whether your prescriptions are on the plan's formulary, and at what tier.
• Prior authorization or step therapy rules that could delay a drug you already take.
• Extra benefits, such as dental or hearing, only if you'll actually use them.

Write down the plan name and the contract and plan ID so you can confirm you're enrolling in the same plan you compared.

FAQ

When is Medicare Open Enrollment for 2027 coverage?

It runs from October 15 through December 7, 2026. Changes made by December 7 take effect January 1, 2027.

Is SHIIP really free?

Yes. SHIIP is part of the North Carolina Department of Insurance. Counselors give free, unbiased help and do not sell plans.

Can a SHIIP counselor enroll me in a plan?

Counselors can help you compare options. They are not licensed agents and do not sell or endorse plans. You can enroll at medicare.gov, by calling 1-800-MEDICARE, or through a licensed agent if you choose to.

What if I like my current Medicare Advantage plan?

You should still compare. The Commissioner noted that many plans had signaled increases for 2027, and another plan in your area may cover your care or drugs at a better price.

Next step

If you have Medicare, call SHIIP at 1-855-408-1212 or talk with a licensed local agent before December 7. Bring your drug list and your doctors' names so you can compare 2027 plans against the one you have now.

Sources: N.C. Department of Insurance, October 14, 2026 press release on 2027 Medicare options; N.C. Department of Insurance, SHIIP; HealthCare.gov, when you can get health insurance.

A North Carolina homeowners policy can use a percentage deductible for a named storm, or for wind and hail, instead of a flat dollar amount. Coastal homes may also need a separate wind policy from the North Carolina Insurance Underwriting Association. The deductible and the claim path are both worth reading before a storm forms.

What is a named storm deductible?

The Department of Insurance defines a "named storm" as a weather-related event involving wind that has been given a formal name by the National Hurricane Center, the National Weather Service, the World Meteorological Association, or another recognized scientific group that names storms for public use. That includes hurricanes, tropical storms, and tropical depressions.

The deductible is typically a percentage of your Coverage A (dwelling) or Coverage C (personal property) limit, and it's shown on your declarations page. The Department's example is straightforward: a 2% named storm deductible on a home insured for $300,000 is $6,000.

That deductible typically applies only during a set window:

• It starts when the National Weather Service issues an advisory, watch, or warning for a named storm for any part of North Carolina.
• It ends 24 hours after the last watch or warning for any part of the state ends, or 24 hours after the last advisory, whichever is later.

A storm that never puts a watch or warning up for North Carolina may not trigger this deductible, even if you get wind or rain. A storm that does can trigger it statewide once any part of the state is under a watch or warning. Read your own policy, because the endorsement has to match what's on the declarations page.

How is a regular wind or hail percentage deductible different?

Some policies use a windstorm or hail percentage deductible that is not limited to named storms. The Department says this one is a percentage of Coverage A and is also shown on the declarations page.

The example given is a 1% deductible on $200,000 of dwelling coverage, which means you'd pay $2,000 out of pocket for a wind or hail claim. Unlike the named storm version, this deductible can apply to a garden-variety thunderstorm or hail event, not just a named tropical system.

If your policy has both kinds of deductibles, ask your agent which one applies in which situation. You don't want to find out after a September storm that the larger percentage applied.

When do you need a policy from the Coastal Property Insurance Pool?

Depending on where you live and the company's underwriting guidelines, windstorm and hail coverage may be excluded from the primary homeowners policy. In that case, you may buy a separate windstorm and hail policy. Along the North Carolina coast, that policy is often written by the North Carolina Insurance Underwriting Association, also called the Coastal Property Insurance Pool or NCIUA.

NCIUA is a tax-exempt association of insurers created by law to offer essential property insurance in the state's beach and coastal areas. To buy a windstorm and hail policy there, you have to keep an active primary policy with an admitted carrier in North Carolina that has excluded windstorm. The separate policy has its own deductible.

If wind is excluded from your homeowners policy and you don't have the NCIUA policy, a hurricane claim for wind damage may not be covered at all. That's a different problem than a high deductible.

How do you file a wind or hail claim?

Even if you have a separate NCIUA wind policy, your primary insurer investigates and adjusts the claim. Start by calling your homeowners agent or company to report the loss.

The Department also recommends:

• Do what you can to stop further damage, such as putting a tarp on a damaged roof, and keep receipts. Reasonable costs to protect the property may be reimbursed.
• Make a list of the damage and take clear photos before you make temporary repairs.
• Don't make permanent repairs until the insurer has inspected the damage and you've agreed on the repair cost.
• Check with the company before you throw away damaged materials.
• If you can't stay in the house, ask which living expenses will be reimbursed.
• Ask the adjuster what to expect and whether more information is needed.

A percentage deductible can be a large out-of-pocket number. Knowing that number in June is a lot easier than learning it in September.

FAQ

How is a 2% named storm deductible calculated?

It's typically a percentage of your Coverage A or Coverage C limit, as shown on the declarations page. The Department of Insurance's example is 2% of $300,000, which equals $6,000.

When does a named storm deductible apply?

It typically starts when the National Weather Service issues a named-storm advisory, watch, or warning for any part of North Carolina, and it ends 24 hours after the last watch, warning, or advisory for any part of the state.

What is NCIUA?

The North Carolina Insurance Underwriting Association, also called the Coastal Property Insurance Pool, writes essential property coverage, including separate windstorm and hail policies, in the state's beach and coastal areas.

If I have an NCIUA wind policy, who adjusts my claim?

Your primary homeowners insurer investigates and adjusts the claim, even when the wind coverage sits on a separate NCIUA policy.

Next step

Pull your declarations page and talk with a licensed local agent about which wind or named storm deductible you have, how many dollars that percentage equals on your Coverage A limit, and whether you need a separate coastal wind policy.

Sources: N.C. Department of Insurance, windstorm and hail.