Commissioner Mike Causey announced the average rate increase across the state.
North Carolina Insurance Commissioner Mike Causey has announced that following negotiations with the dwelling insurance market, there will be an average 8 percent rate increase across the state.
The increase is substantially lower than what was requested
The North Carolina Rate Bureau had been seeking an average increase to dwelling insurance rates of 50.6 percent. That means that following negotiations, it was reduced by 42.6 percent to arrive at the average that will be implemented in the state.
This type of coverage is not the same as a regular homeowners’ policy. Though still in the property category, these policies are usually sold to property owners who want to cover residences that are not occupied by the owners and that have four or fewer units.
The new dwelling insurance rate will become effective as of November 1, 2024
According to the press release issued by the commissioner’s office to announce the increase, the specific amount that a given policyholder will pay will vary from one region to the next in the state. The 8 percent increase is an average across the state, meaning that while some will see smaller increases, others will see larger ones.
“I am happy that we were able to save North Carolina consumers more than $151.7 million per year in this rate case over what the insurance companies requested,” said Causey in the news release. “I’m also glad that we were able to avert a potentially lengthy and costly hearing on this case. Our top-notch legal, actuarial and property and casualty experts at the Department worked diligently to help protect the consumers’ pocketbooks by limiting this increase to 8%.”
Eliminating the need for a public hearing
As an agreement was reached between the North Carolina Rate Bureau and the commissioner’s office, a previously scheduled public hearing scheduled for July 22 has been cancelled. The need for it has been eliminated.
Causey had previously rejected a request made by the dwelling insurance market seeking a 42 percent increase across the state. In some parts of eastern North Carolina, particularly along the coast, that translated to a 99 percent increase in their premiums.
