The Ledford Group
The latest North Carolina insurance increase takes a small bite out of a Matthews rental's cash flow, but on a thin deal it can take a big share of what's left. In my example below, an extra $39 a month wipes out about a quarter of the profit.
Quick Answer: Charlotte-area homeowners insurance base rates rose 9.3% in 2025 and 9.2% in 2026, according to the North Carolina Department of Insurance settlement as reported by ABC11. Together that's about 19.4%. On a Matthews rental with a $200-a-month policy, that adds roughly $39 a month, and the settlement bars the Rate Bureau from seeking another increase before June 1, 2027. Jennifer Ledford of The Ledford Group at eXp Realty suggests running every rental through the new insurance number before you buy or renew.
I'm Jennifer Ledford with The Ledford Group at eXp Realty. The question every investor needs answered is whether the property will pay for itself. Insurance is one line in that answer, and it just got bigger.
What changed with NC insurance rates?
North Carolina's Insurance Commissioner announced a settlement with the insurance industry's Rate Bureau. Under it, Charlotte-area base rates rose 9.3% effective June 1, 2025, and 9.2% effective June 1, 2026, according to ABC11. Statewide, each phase averaged 7.5%. The Rate Bureau had originally asked for a 42.2% increase.
The settlement bars the Rate Bureau from trying to raise rates again before June 1, 2027, according to the same report. That's a pause on the base rate filing. It isn't a freeze on your premium. Your actual price depends on your carrier, the home's age, the roof, and your coverage.
Two increases compound. A 9.3% rise followed by a 9.2% rise comes to about 19.4%.
What does it do to a Matthews rental? A simple example
These numbers are made up to show the math. They aren't Matthews averages, so swap in your own.
Say a Matthews single-family rental brings in $2,400 a month. The owner sets aside $240 for vacancy and repairs, and pays $1,500 for the mortgage, $300 for property tax, and $200 for insurance ($2,400 a year).
Before the increases, that's $2,400 minus $240, $1,500, $300, and $200, which leaves $160 a month.
Now raise the insurance by about 19.4%. The policy goes from $2,400 to about $2,865 a year, or roughly $239 a month. That's $39 more.
Cash flow drops from $160 to $121 a month. That's $39 out of $160, or about 24% of the profit. The rent didn't change. The house didn't change. One line item did.
On a deal with $600 a month of cash flow, the same $39 is about 6.5%. Thin deals feel it most.
Can I pass it on to the tenant?
Only partly. You can raise rent at renewal, but you can't count on the market agreeing. Redfin reported that Charlotte had 69.9% more sellers than buyers in August 2026. That's a for-sale number, not a rental one, but it points to a market where people have options. I'd check current rents for similar homes in Matthews before assuming you can add $39.
What can a landlord do about it?
Start with the policy itself. A few steps to consider:
Get quotes from at least two carriers or an independent agent. Same home, same coverage, and prices can differ.
Make sure you have the right kind of policy. A rental needs landlord coverage, and a standard homeowner policy may not cover it. Ask your insurance agent.
Ask about the deductible and the roof. A higher deductible lowers the premium but costs more on a claim, and a roof's age can change the price.
If the property is in an HOA community, such as Twelve Parks or Callonwood, ask what the association's master policy covers, so you don't pay for the same thing twice.
What should I do before I buy a Matthews rental?
Get the insurance quote before you make an offer, not after closing. Plug the real number into your cash flow, and run it again with 10% more, so you can see how much room you have.
Matthews has real renter appeal. Downtown has independent shops, the Matthews Community Farmers Market runs Saturday mornings on Trade Street, and Squirrel Lake Park has a lake, a disc golf course, and a walking trail. Renters like those things. Your numbers still have to work.
This is general information and not insurance, tax, or financial advice. Check your actual quote with a licensed agent.
If you're thinking about a Matthews rental, call me at 704-607-6996. I'll show you the numbers before you offer, including the ones that don't look good.
Frequently asked questions
How much did NC homeowners insurance rise in 2026? According to the NC Department of Insurance settlement as reported by ABC11, Charlotte-area base rates rose 9.2% on June 1, 2026, after a 9.3% increase in 2025. Your actual premium depends on your carrier and your home.
Will insurance rates rise again in North Carolina? The settlement bars the Rate Bureau from seeking another rate increase before June 1, 2027. That doesn't stop individual carriers from changing other parts of your policy, so ask your agent at renewal.
Does a standard homeowner policy cover a rental? Usually not. Rental properties generally need landlord coverage, so ask a licensed insurance agent what your policy covers before a tenant moves in.
How can I lower my rental insurance cost? Compare quotes, check the roof's age and condition, consider a higher deductible, and ask about the HOA's master policy if the home is in a community. Get the quote before you buy so it's in your numbers.
About Jennifer Ledford: Jennifer Ledford is a licensed real estate agent with The Ledford Group at eXp Realty LLC, serving buyers and sellers across Mecklenburg, Union, Stanly, and York Counties since 2016. She is among the top 3% of 18,000+ agents in the Charlotte Metro, an eXp ICON, and has guided 250+ clients through some of the most significant transactions of their lives. Reach her at 704-607-6996 or https://the-ledford-group.com.
Jennifer Ledford | 📞 704-607-6996 | 🌐 https://the-ledford-group.com
About the author
Jennifer Ledford, REALTOR, has helped Charlotte-area buyers and sellers full time since 2016, with 250+ homes sold. She is a Certified Negotiation Expert with The Ledford Group at eXp Realty LLC.
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