NCJUA vs NCIUA: NC Coastal Wind Insurance Explained

The NCJUA (the NC FAIR Plan) writes dwelling and commercial policies only and never homeowners. It writes everywhere except the Beach Area. If you own property in one of North Carolina's 18 coastal counties, you've probably heard the acronyms NCJUA and NCIUA. Both are residual market programs — but they serve very different purposes. Harbor Insurance Agency helps Eastern NC property owners navigate these programs and find the right coverage.

What Is the NCJUA?

The NCJUA (NC Joint Underwriting Association) is the NC FAIR Plan. The NCJUA (the NC FAIR Plan) writes dwelling and commercial policies only and never homeowners. It writes everywhere except the Beach Area. If private carriers will not write dwelling or commercial coverage for an eligible property, NCJUA may provide that last-resort protection. It is not a homeowners policy.

What Is the NCIUA?

The NCIUA (NC Insurance Underwriting Association), commonly known as the Beach Plan, is the market of last resort in its Beach Area and Coastal Area. NCIUA writes full homeowners policies and wind-and-hail-only policies for eligible property in its Beach and Coastal territory. It is not flood insurance. Wind-and-hail-only policies are available for homes, dwellings, and commercial property. In the Beach Area, dwelling fire and commercial fire policies come from NCIUA (the Coastal Property Insurance Pool). NCIUA does not write dwelling or commercial fire on the mainland (Coastal Area); there it writes homeowners and wind-and-hail-only. NCIUA is the only one of the two that writes wind-and-hail-only policies and the only one that writes homeowners, and only in its Beach and Coastal territory. Depending on the carrier and policy, a standard homeowners policy here may exclude wind and hail.

How Rates Are Set

The Association's rates shall be the North Carolina Rate Bureau Manual Rates plus a surcharge of five percent (5%) of the applicable North Carolina Rate Bureau Manual Rate for wind and hail coverage and a surcharge of fifteen percent (15%) of the applicable North Carolina Rate Bureau Manual Rate for homeowners' insurance including wind and hail coverage (G.S. 58-45-45(a1)). The rates, rating plans, and rating rules for the separate policies of windstorm and hail insurance described in G.S. 58-45-35(b) shall be filed by the Association with the Commissioner for the Commissioner's approval, disapproval, or modification. (G.S. 58-45-45(b)).

How to Apply

You can only apply for NCJUA or NCIUA coverage through a licensed North Carolina insurance agent. Your agent submits the application on your behalf, and coverage is typically bound quickly once approved. At Harbor Insurance Agency, we have producer access to NCJUA and NCIUA and can walk you through the process from application to binding.