If you own a rental, a second home you lease out, or an investment property anywhere from Leland to Wrightsville Beach to Surf City, your next insurance renewal may look a little different. New statewide rates for North Carolina dwelling policies, the type of coverage most landlords and many non-owner-occupied homes carry, took effect for policies starting on or after October 1, 2026. Here’s what changed, how it fits with the homeowners rate increases that already hit the coast this year, and what it means for investors in Brunswick, New Hanover, and Pender counties.
What Changed on October 1
According to a North Carolina Rate Bureau circular dated April 23, 2026, the state Commissioner of Insurance approved a two-year settlement on revised dwelling fire and extended coverage rates. The Rate Bureau, which represents insurance companies, had originally asked for a statewide average increase of 68.3% over two years. The settlement landed far lower:
- Year 1 (policies effective on or after Oct. 1, 2026): a +5.0% statewide average overall, made up of a 5.0% decrease on the fire portion and a 7.3% increase on extended coverage.
- Year 2 (policies effective on or after Oct. 1, 2027): another +5.0% statewide average overall, with fire down 5.0% and extended coverage up 7.1%.
The settlement also revised windstorm mitigation credits and the credits applied when a policy excludes wind and hail. Changes apply to new and renewal policies, so most owners will see the effect at their next renewal rather than all at once.
Why “extended coverage” matters so much here
On a dwelling policy, extended coverage is the part that handles perils like windstorm and hail. That’s the piece that carries the most weight on our coast. The Rate Bureau’s own base premium tables show coastal territories, including the beach territory that covers Brunswick, New Hanover, and Pender beach areas, with much higher extended coverage base premiums than inland parts of the state. So even though the percentage change is the same statewide, the dollar impact tends to be larger here, where wind is the dominant risk.
How This Fits With This Year’s Homeowners Increases
Dwelling policies are separate from standard homeowners policies, which had their own changes. Under a settlement announced by the N.C. Department of Insurance in January 2025, homeowners base rates rose again on June 1, 2026. The NCDOI settlement table lists the 2026 increases for our three counties as 15.9% in beach areas, 10.1% in eastern coastal ZIP codes (which include most Wilmington ZIP codes and Hampstead’s 28443), and 4.8% in western coastal ZIP codes (which include downtown Wilmington’s 28401 and Leland’s 28451). Check the table for your exact ZIP code. That same settlement bars the Rate Bureau from requesting another homeowners increase before June 1, 2027.
Put simply: owner-occupants absorbed their larger bump in June, and landlords and dwelling-policy holders are now seeing a smaller statewide change that leans on the wind side of the premium.
What It Means for Local Rental Owners and Investors
Re-run your numbers at renewal
Whether you own a long-term rental in Ogden, a duplex near UNCW, or a vacation rental on Oak Island or Topsail Island, insurance is one of the few big operating costs that resets every year. Ask your agent for the renewal quote early, and update your cash flow math before deciding on rent changes or a sale.
Ask about wind mitigation credits
Because the settlement revised windstorm mitigation credits, it’s worth asking your agent which features your property qualifies for, such as roof construction, roof-to-wall connections, and opening protection like impact-rated windows or shutters. Documentation from an inspection can make a difference, and the details vary by carrier and policy.
Remember flood is separate
None of these rate changes touch flood coverage. Flood insurance through the NFIP or a private carrier is its own policy, and many lenders require it in FEMA special flood hazard areas. For investors comparing properties across Carolina Beach, Holden Beach, or riverfront Burgaw, flood zone and elevation can swing your total insurance cost more than any of the changes above.
Buyers: get quotes before you’re under contract, or early in due diligence
If you’re buying an investment property, get insurance quotes during your due diligence period. A property’s construction, roof age, distance from the water, and flood zone all affect what it will cost to insure as a rental, and that number belongs in your offer math.
What It Means for Sellers of Rental Properties
If you’re selling a rental, buyers will be asking about operating costs. Having your current dwelling and flood policy declarations pages, roof age, and any wind mitigation paperwork ready can help investors underwrite your property quickly and with more confidence.
FAQ
What is a dwelling policy?
It’s a property insurance policy commonly used for homes that aren’t owner-occupied, such as long-term rentals and some second homes. It’s different from a standard homeowners policy. Your agent can confirm which type you have.
Will my premium go up exactly 5%?
Not necessarily. The 5.0% figure is a statewide average across all dwelling forms. Your actual change depends on your territory, coverage, credits, and carrier.
When will I see the change?
Year 1 changes apply to new and renewal policies effective on or after October 1, 2026. The Year 2 change applies on or after October 1, 2027.
Does this affect flood insurance?
No. Flood coverage is a separate policy and isn’t part of this rate settlement.
Thinking About Buying, Selling, or Holding a Rental?
Insurance is just one piece of the investment picture in the Cape Fear region, alongside rents, taxes, flood zones, and local short-term rental rules. If you’d like help weighing a purchase or sale in Brunswick, New Hanover, or Pender County, reach out to the Aspyre Collective team. We’re happy to talk through the numbers with you.
