NC Rental Insurance Is Climbing

North Carolina dwelling insurance rates in 2025 were on the rise, and another wave is already scheduled for 2026. What began as a request for dramatic premium hikes has turned into a two-year climb in homeowners insurance premiums, with a much steeper proposal now aimed at non-owner-occupied rentals. For investors who rely on stable cash flow, it’s time to prepare.

In early 2025, the North Carolina Rate Bureau and the Department of Insurance agreed to raise homeowners’ base rates by 7.5% in June 2025 and again in June 2026. While applicable to owner-occupied policies, they influence the entire market.

Then, in November 2025, insurers submitted a new filing requesting an average 68.3% increase for dwelling policies, which are the very policies used for investment properties, DP-3 rentals, and single-family homes with tenants in place. That filing would phase in as 28.5% in mid-2026 and 30.9% in mid-2027 and is now under Department of Insurance review.

When Rates Move, Landlords Need a Plan

A rate increase is one thing, but a steep, multi-year increase is another. For a landlord paying around $1,600 per year in insurance, the two 7.5% increases alone would push premiums to roughly $1,849 by mid-2026. That’s nearly $250 a year, which translates to about $21 per month to recoup somewhere in rent.

But the more significant impact may come from the proposed dwelling policy filing. While it’s not final and may be reduced during the DOI’s negotiation process, its existence sends a clear message that insurers are pricing to rising risk from construction costs, storms, liability claims, and reinsurance rates.

By fine-tuning coverage, strengthening property resilience, and planning rent adjustments with precision rather than emotion, owners can offset most of the premium growth without losing well-qualified residents.

“Set It and Forget It” Doesn’t Work for Deductibles Anymore

Many landlords have held the same deductible for years, unaware that they pay out of pocket so often. A move from a $1,000 deductible to $2,500 or even $5,000 can meaningfully improve premium pricing, especially on well-maintained single-family rentals.

Pair higher deductibles with a disciplined reserve policy. Keeping one deductible’s worth of cash per door ensures you can handle minor losses without relying on the insurer for every drip or ding.

Claim frequency matters as much as claim size, and insurers often reward landlords who reserve major claims for major problems.

Match the Policy to the Property, Not the Other Way Around

Many Charlotte rentals are best placed on DP-3 policies with replacement-cost coverage, not older DP-1 policies that settle claims on an actual-cash-value basis. While DP-1 can appear cheaper upfront, the savings evaporate the moment a roof claim or water loss comes back with depreciation taken out.

It’s also wise to check your loss-of-rent coverage. In a market where average days-to-lease can vary widely by neighborhood, ensuring sufficient coverage to bridge multiple months is very important. Underestimating your loss-of-rent need is one of the fastest ways to turn a claim into a cash-flow crunch.

Prevention Pays More Than Negotiation

Some of the most expensive and preventable claims in Charlotte come from water losses, like ice-dam leaks, failed supply lines, dishwasher leaks, and clogged HVAC condensate lines. Installing inexpensive water sensors in kitchens and bathrooms, or upgrading to automatic shut-off systems, dramatically reduces the risk of a full-scale water claim.

Similarly, newer roofs, updated plumbing, and electrical improvements often unlock credits. Even something as simple as monitored smoke detectors can lead to small but meaningful savings, especially when insurers evaluate risk holistically.

Carriers prefer landlords who think like risk managers. And in a rising-rate environment, that mindset is valuable currency.

Smarter Coverage Beats Cheaper Coverage

When premiums rise, the temptation is to start trimming endorsements. But eliminating valuable protections like sewer backup, equipment breakdown, or matching siding and shingle coverage can create massive exposure for properties that need them most.

Instead of cutting outright, align coverage with actual property risk. A 1970s ranch home may need water-backup protection more than cosmetic matching. A newly built rental may benefit from a more comprehensive endorsement package, given its higher replacement value.

Build a Rent Strategy Around Premium Changes

If your premiums rise by $21 per month and you fail to adjust rents accordingly, your NOI often decreases quietly. Conversely, raising rent significantly just because “insurance went up” can lead to high turnover. Adopt a more strategic, story-driven renewal process.

Give residents 60–75 days’ notice so they can plan accordingly. Present renewal pricing with a calm, data-backed explanation of market trends and improvements made to the property. Show them what’s being done to safeguard the property, such as leak sensors, new HVAC filters, preventive insulation, or roof upgrades.

Market Knowledge Matters More Than Ever

Charlotte’s rental demand for 2025 and 2026 will vary across submarkets. Some ZIP codes handle rent hikes well, while others prefer lease options or renewal incentives.

Considering rising insurance premiums and the rental market, having detailed local market intelligence provides a competitive edge.

A landlord trying to offset insurance increases in 28215 may use different tactics than one managing in 28273, 28208, or Fort Mill just across the state line.

How We Protect Owners in a Rising-Rate Environment

Our team is dedicated to supporting owners like you with your insurance needs. We’re here to help with annual coverage reviews, provide strategic rent recommendations at renewal time, and offer maintenance programs to help minimize claims.

Before renewal season, we review your premium changes, market conditions, and vacancy risks to recommend rent adjustments that protect occupancy and income, ensuring peace of mind.

We also coordinate with your agent to verify that your dwelling coverage, deductible plan, and loss-of-rent protection align with your actual operating reality, not just an outdated policy.

Although headlines seem dramatic, the path forward is manageable. North Carolina dwelling insurance rates will rise in 2025 and 2026, and larger filings are expected, but proactive landlords will stay best positioned.

Charlotte landlords can stay profitable despite rising premiums by adjusting deductibles, boosting property resilience, upgrading coverage, and pricing rent smartly. Contact us for a personalized rent-strategy review and explore your options!