Fact file: North Carolina hurricane insurance

June 2020

  • Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricanes Irma and Harvey in 2017, Hurricane Sandy in 2012, Hurricane Michael in 2018 and Hurricane Charley in 2004. (See chart.)
  • North Carolina was also battered by Hurricane Floyd, which caused $1.4 billion in insured losses in the state in 1999 (about $2.1 billion in 2019 dollars). These losses do not include flood damage covered under the federal government’s National Flood Insurance Program.
  • There were 140,107 flood insurance policies in North Carolina in 2018. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • In North Carolina about 268,000 single-family homes were at risk for storm surge damage from hurricanes up to Category 5 strength in 2020, according to CoreLogic, Inc. These homes would cost $59.5 billion to completely rebuild, including labor and materials.
  • Of the 11 most hurricane-prone counties in the U.S., five are in Louisiana, three are in Florida and two are in North Carolina, according to a study by the U.S. Census (see chart).
  • The number of people living in coastal areas in North Carolina increased by 508,000 people or 114.4 percent, from 1960 to 2010, according to the U.S. Census Bureau.
  • North Carolina has two residual market plans that act as a market of last resort for residential and commercial property insurance in the state. The North Carolina Joint Underwriters Association (NCJUA) was created in 1969 to make basic and broad property insurance available to those unable to buy coverage through the standard insurance market. The plan, known as a FAIR Plan, covers the entire state except those barrier islands adjacent to the Atlantic Ocean. The North Carolina Insurance Underwriting Association (the state’s Beach Plan), also created in 1969, provides windstorm and hail coverage as well as homeowners policies for properties located in the state’s beach and coastal area.
  • As of fiscal year 2019, North Carolina’s beach and windstorm plan reported a total of 210,903 policies up from 94,612 policies reported at the end of 2004. Total exposure to loss under the plan increased to $75.7 billion in fiscal year 2019 from $31.6 billion in 2004 – an increase of 140 percent.
  • The North Carolina JUA/IUA plans have accessed the capital markets four times (2009-2011 and 2013) to provide them with additional reinsurance protection in the event of a hurricane. The NCIUA/NCJUA’s risk financing program provides approximately $3.3 billion in protection for the benefit of North Carolinians.

Top 10 Writers Of Commercial Insurance In North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $472,254 6.1%
2 Liberty Mutual 390,864 5.0
3 Chubb 370,311 4.8
4 Zurich 318,849 4.1
5 Nationwide Mutual Group 271,113 3.5
6 Hartford Financial Services 262,624 3.4
7 American International Group (AIG) 229,240 3.0
8 Berkshire Hathaway Inc. 210,952 2.7
9 The Cincinnati Insurance Cos. 201,288 2.6
10 Erie Insurance Group 197,080 2.5

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $488,636 16.9%
2 North Carolina Farm Bureau Insurance Group 351,834 12.2
3 Nationwide Mutual Group 271,396 9.4
4 USAA Insurance Group 257,066 8.9
5 Allstate Corp. 187,671 6.5
6 Erie Insurance Group 161,876 5.6
7 Travelers Companies Inc. 102,753 3.6
8 Liberty Mutual 100,365 3.5
9 Auto-Owners Insurance Co. 91,442 3.2
10 American Family Insurance Group 64,125 2.2

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In North Carolina By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $946,301 14.1%
2 Berkshire Hathaway Inc. 780,564 12.9
3 National General Holdings Corp. 645,503 10.3
4 Nationwide 689,089 10.0
5 North Carolina Farm Bureau Insurance 612,305 9.7
6 Allstate Corp. 518,374 8.0
7 USAA 479,938 7.8
8 Progressive 402,262 7.3
9 Erie Insurance 249,828 4.1
10 Liberty Mutual 179,360 2.8

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss
Rank Date Location Hurricane Dollars when occurred In 2019 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $52,828
2 Sep. 19-22, 2017 PR, USVI Hurrican Maria (3) 25,000-30,000 26,100-31,300
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 25,000-30,000 26,100-31,300
4 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 18,000-20,000 18,800-20,800
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 21,065
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,867
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 20,861
8 Oct. 10-12, 2018 AL, FL, GA, MD, NC, SC, VA Hurricane Michael 9,000-12,000 9,200-12,200
9 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,239
10 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,906

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of April 17,2020.
(2) Adjusted for inflation through 2019 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Insurance Information Institute estimate based on data from catastrophe risk modelers, reinsurance companies, the Property Claims Services unit of Verisk Analytics, the Federal Emergency Management Agency of the U.S. Department of Homeland Security, and the Florida Office of Insurance Regulation. These estimates are preliminary because the organizations involved periodically resurvey the events, and the severity of losses and other factors create a high level of uncertainty surrounding the ultimate loss figures.

Source: Insurance Information Institute, catastrophe risk modelers, reinsurance companies, U.S. Department of Homeland Security, the Florida Office of Insurance Regulation, the Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, and the U.S. Bureau of Economic Analysis.

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Storm Surge Risk By State By Number Of Single-Family Homes and Reconstruction Value, 2020 (1)

 

    Number of single-family homes at risk by storm category (2)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida 353,994 1,088,511 1,806,312 2,362,323 2,851,642
2 Louisiana 72,883 212,707 640,307 770,030 843,349
3 Texas 41,398 122,453 264,103 399,741 563,024
4 New Jersey 95,473 277,147 381,388 471,323 471,323 (3)
5 New York 76,805 228,069 351,937 467,787 467,787 (3)
6 Virginia 23,232 89,347 243,707 366,117 410,277
7 South Carolina 37,107 132,728 219,420 308,387 363,875
8 North Carolina 33,254 97,694 165,266 216,446 267,802
9 Georgia 9,378 54,470 113,068 152,882 164,504
10 Massachusetts 8,102 42,832 97,083 151,979 151,979 (3)
11 Maryland 16,091 59,214 98,757 126,589 126,589 (3)
12 Mississippi 5,740 25,385 56,768 90,023 102,596
13 Pennsylvania 847 21,378 58,921 85,794 85,794 (3)
14 Connecticut 6,708 27,921 46,186 67,433 67,433 (3)
15 Delaware 10,855 31,057 49,103 67,055 67,055 (3)
16 Alabama 5,203 15,841 27,769 40,287 51,929
17 Rhode Island 1,396 7,979 17,345 26,336 26,336 (3)
18 Maine 5,657 7,912 11,969 18,149 18,149 (3)
19 New Hampshire 193 4,069 7,074 9,336 9.336 (3)
  Total homes
potentially affected
804,316 2,546,714 4,656,483 6,198,017 7,110,779
    Reconstruction cost value of single-family homes at risk (2), (4) ($ millions)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida $71,707.9 $224,088.9 $372,234.3 $483,618.4 $580,606.2
2 Louisiana 15,887.7 47,717.2 152,745.6 184,008.0 $202,330.0
3 New York 30,410.9 95,248.1 146,867.2 196,107.2 196,107.2 (3)
4 New Jersey 27,523.2 84,974.9 119,707.6 150,599.6 150,599.5 (3)
5 Texas 7,467.3 22,579.6 51,408.9 81,181.5 113,419.1
6 Virginia 5,962.5 22,598.0 57,844.1 86,624.2 98,314.8
7 South Carolina 10,447.7 35,063.9 55,589.2 75,121.4 86,468.7
8 North Carolina 7,178.2 21,277.7 36,350.3 47,968.2 59,542.6
9 Massachusetts 2,306.8 12,658.0 29,179.0 47,309.5 47,309.5 (3)
10 Georgia 2,869.0 14,504.6 26,994.0 35,215.7 37,416.2
11 Maryland 3,878.3 14,151.3 23,657.9 30,518.8 30,518.8 (3)
12 Connecticut 2,344.5 9,635.7 15,669.6 22,538.4 22,538.4 (3)
13 Pennsylvania 193.8 5,120.6 14,596.0 21,349.8 21,349.8
14 Mississippi 1,175.2 5,247.4 11,573.3 18,024.1 20,467.4
15 Delaware 3,082.8 8,693.8 13,892.8 18,943.9 18,943.9 (3)
16 Alabama 965.3 2,972.1 5,112.2 7,360.8 9,449.8
17 Rhode Island 350.2 2,339.3 5,080.9 7,761.3 7,761.3 (3)
18 Maine 1,314.9 1,892.6 2,949.9 4,589.9 4,589.8 (3)
19 New Hampshire 35.2 713.9 1,434.1 2,038.9 2,038.9 (3)
  Total homes
potentially affected
$195,101.5 $631,477.6 $1,142,886.9 $1,520,879.6 $1,709,772.1

(1) The risk categories are cumulative and increase in value from Category 1 to Category 5. Category 1 represents the higher risk of damage from a weak hurricane; Category 5 includes Categories 1 to 4 and the low risk of damage from a Category 5 hurricane.
(2) Measured in units.
(3) Storm surge risk for Category 5 storms for homes on the northeastern Atlantic Coast is not shown due to the extremely low probability of a Category 5 storm affecting these areas.
(4) Represents the cost to completely rebuild including labor and materials by geographic location.

Source: CoreLogic®, a property data and analytics company.

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Top Coastal Counties Most Frequently Hit By Hurricanes: 1960-2008

County  State Coastline region Number of
hurricanes
Percent change
in population,
1960-2008
Monroe County Florida Gulf of Mexico 15 50.8%
Lafourche Parish Louisiana Gulf of Mexico 14 67.2
Carteret County North Carolina Atlantic 14 104.3
Dare County North Carolina Atlantic 13 465.9
Hyde County North Carolina Atlantic 13 10.1
Jefferson Parish Louisiana Gulf of Mexico 12 108.9
Palm Beach County Florida Atlantic 12 454.7
Miami-Dade County Florida Atlantic 11 156.5
St. Bernard Parish Louisiana Gulf of Mexico 11 17.2
Cameron Parish Louisiana Gulf of Mexico 11 4.8
Terrebonne Parish Louisiana Gulf of Mexico  11 78.7

Source: U.S. Department of Commerce, Census Bureau, Decennial Census of Population and Housing: 1960 to 2000; Population Estimates Program: 2008.

 

Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Catastrophes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

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