The North Carolina Insurance Commissioner, Mike Causey, announced on Friday that the North Carolina Rate Bureau was asking for an over 40% rate increase across the state.
- “The North Carolina Rate Bureau filed a rate filing with the North Carolina Department of Insurance on Wednesday asking for an average statewide increase in homeowners’ insurance rates of 42.2%.”
Likely To Be Less. The press release noted that in November 2020 the the Rate Bureau requested an overall average increase of 24.5%. The Rate Bureau and the Insurance Commission reached an agreement for an overall average rate increase of 7.9%.
- In September, Causey’s office and the Rate Bureau negotiated a 4.5% rise in auto insurance rates after the latter had requested an average increase of 28.4% across the state.
Coastal Climb. While the average state increase is shocking it can’t hold a candle to what the Rate Burea is asking for coastal areas. The Rate Bureau is asking for a 99.4% increase for beach areas in Brunswick, Carteret, New Hanover, Onslow and Pender Counties.
- However, the other areas of eastern Coastal areas of Brunswick, Carteret, New Hanover, Onslow & Pender Counties are only looking at a possible increase of 71.4% while the western part of eastern NC is looking at 43.4%
Public Input. A public comment forum will be held to listen to public input on the North Carolina Rate Bureau’s rate increase request at the North Carolina Department of Insurance’s Jim Long Hearing Room in Raleigh on Jan. 22 from 10 a.m. to 4:30 p.m.
- A virtual public comment forum will be held simultaneously with the in-person forum on Jan. 22 from 10 a.m. to 4:30 p.m. The link to this virtual forum
- Email comments to NCDOI.2024Homeowners@ncdoi.gov and they should be sent by Feb. 2.
BOTTOM LINE: Rates are not going to rise by the requested amount. However, even if they rise by 1/3 (like in 2020) we are still looking at a substantial increase. A third of the current ask would mean a 33% increase for the beach towns, a 24% increase in the eastern part of the area, and a 15% increase in the western part.