Large rate hikes proposed for NC homeowners' insurance

On Jan. 5, North Carolina Insurance Commissioner Mike Causey issued a press release announcing potential rate hikes for homeowners insurance.  

The North Carolina Rate Bureau (NCRB) submitted a request to the North Carolina Department of Insurance (NCDOI) for a 42.2% average statewide increase in homeowners’ insurance rates, effective from Aug. 1, per Causey’s release. 

This request follows a previous rate filing in November 2020, where the NCRB sought a 24.5% increase but settled for 7.9% after negotiations with Causey. 

A public comment period is now open, including in-person and virtual forums on Jan. 22, as well as options for emailed and written comments by Feb. 2. 

The public comments hearing will be held from 10 a.m. to 4:30 p.m. in the Jim Long Hearing Room located in the Albemarle Building at 325 N. Salisbury Street in Raleigh. Additionally, a virtual forum will be held at the same time via WebEx. 

Written comments must be received by Feb. 2 and should be sent to Kimberly W. Pearce, Paralegal III, addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201. 

Emailed public comments should be sent by Feb. 2 to:  2024Homeowners@ncdoi.gov. 

If NCDOI officials don’t agree with the requested rates, they could either be denied or negotiated with the NCRB. If a consensus is not reached within 50 days, Causey may call for a hearing. 

Per a table provided by Causey’s office, rate increases across areas of the state range anywhere from a low of 4.3% in Haywood, Madison, Swain, and Transylvania Counties to a whopping 99.4% increase in the beach areas in Brunswick, Carteret, New Hanover, Onslow, and Pender Counties. 

Using the table’s rate numbers, the average increase across the 29 areas is 39.1%. With the highest and lowest rates removed, the average increase drops to 33.9%.