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North Carolina is a coastal area and hence a number of climatic problems are seen to be perennial there. Almost every year the people have to go through the trauma of hurricanes and storms. Highly devastating hurricanes can leave behind a trail of destruction and it is here that most home insurance companies play a part in redeeming some of the woes of the affected families. But with frequent such calamities the home insurance companies of North Carolina are finding it extremely difficult to cope up with the huge demands of insurance pay outs. Most residents of North Carolina pay exorbitantly for their home insurance premiums considering the location they are in. The steep rise in the costs of home insurance has risen further with the additional costs of Wind and Hail Insurance added to the amount of home insurance. Such steep increases can be a huge financial burden on the home owners especially the ones whose income is not as high so as to compensate the huge expense. To compensate the huge expense incurred on insurance a number of households have given out either the entire home or part of it on rent so that the rent can compensate the expense.