FIRST ON 3: Beach homeowner insurance going up almost 20%


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Submitted: Wed, 03/06/2013 - 4:11am
Updated: Wed, 03/06/2013 - 11:23am
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RALEIGH, NC (WWAY) — Insurance Commissioner Wayne Goodwin signed a settlement agreement today with homeowners insurance companies allowing an overall statewide average rate increase of 7 percent on July 1.

The rate for the beach area of Brunswick, New Hanover and Pender Counties will go up by 19.8 percent. Homeowners in the coastal area of those counties will go up by 8.6 percent. Bladen and Columbus County homeowners will see an almost 10% increase.

The insurance companies, represented by the North Carolina Rate Bureau, had requested an overall statewide average rate increase of 17.7 percent before the election on Oct. 1, 2012.

The difference between the requested and settled rates amounts to $237 million in savings to policyholders according to Goodwin.

Potential hurricane played a large role in the decision to hike rates along the Cape Fear Coast, according to Goodwin.

The last homeowners insurance rate filing occurred in 2008 when the insurance companies requested a 19.5 percent statewide average increase. A settlement agreement allowed for a 4.05 percent statewide average increase to go into effect in May 2009.

39 Comments

  • Guest Reply says:

    “Guess it is time to sell my house and move”…(Unquote)

    You must be referring to selling your home to the “We Buy Homes” folks…because no one in their right mind outside this area is going to buy into this fiasco of a Paradise called Wilmington…No One!

  • Guest757 says:

    Does anyone know where we can find the maps for the area going up 20%.

  • RSimmons says:

    We have been subsidizing people on the beaches for way too long.Its time that they assume a larger share of their risk.

    BTW,The 2008 insurance increase was less than 5%, now with the GOP running the show now the increase is twice as much. Boat fees going up, ferry fees going up. but incomes are going down. Elections have consequences.

  • SurfCityTom says:

    did you use your fingers or toes when counting? I guess Bertha and Fran do not count? 1996, 7 years ago. What about Floyd in 1998, I believe was the year; may be off on that.

    Why not educate yourself and ask your agent specifically how rates are promulgated?

  • Me Myself and I says:

    Guess it is time to sell my house and move. There is no reason for an increase, there have been no hurricanes that have done any significant damage to our area in the past 10 years. Home prices have declined so the insurance rates should have also declined. This is an increase designed to put more money in the pockets of the insurance company and I hope the ones responsible for it are tracked down and thrown in jail.

  • Citizen of the Republic says:

    “The insurance companies, represented by the North Carolina Rate Bureau, had requested an overall statewide average rate increase of 17.7 percent before the election on Oct. 1, 2012.”

    “The last homeowners insurance rate filing occurred in 2008 when the insurance companies requested a 19.5 percent statewide average increase. A settlement agreement allowed for a 4.05 percent statewide average increase to go into effect in May 2009.”

    2009 request of 19.5 percent statewide. Received 4.05 percent.
    2012 request of 17.7 percent statewide. Received 7.00 percent.

    Good job Insurance Commissioner Wayne Goodwin.
    I guess the economy is getting better for the Insurance industry.

    It’s that “potential” thing that drives the cost up.
    But there’s always the “potential” we won’t get hit.
    Maybe we should get “rebates” if we don’t get a direct hit.
    How about a NC homeowners tax credit if we don’t have damage.

    I forgot. The potential only goes up, never down.

  • Guest 5967 says:

    Basically if you live on the beach side of the intracoastal waterway in Brunswick county you could be looking at 19% increase. On the mainland side of the waterway you could see roughly an 8% increase. Hope that helps.

  • Guest2013 says:

    another politician in bed with big business.

  • Guest757 says:

    The lasy rate increase anyone on the East side of Market was in the beach area.. DUH !!!

  • jj says:

    Are you for really. This was caused by the Dems spending money they don’t have. That is what is wrong with this country. When you borrow money you do have to pay it back. It so happens that the GOP is responsible enough to know that and is trying to do something about it.

  • Guest 10101 says:

    to find the beach? Duh!

  • Guest757 says:

    Fran and Bertha 1996 Bonnie in 1998 and Floyd in 1999
    more than 10 years in my book but I use OLD math so I might me wrong

  • Guest2020 says:

    Not defending his math, I think he probably made an honest mistake. Renters are affected just as much by these rate hikes as homeowners in that their rent gets raised to cover the cost.

  • Guest123 says:

    Hopefully I’m reading you incorrectly, but did you just say 1996 was 7 years ago? Are you still stuck in 2003?

  • otherGuest says:

    1996 was seven years ago????

    Our future is here and it is hopeless, listen to this guy! I KNOW he cannot be paying insurance premiums, must be a renter or something.

  • MathTeacher says:

    He said in the past 10 years. Back to school for you.

  • guesty says:

    1996 is slightly more than 7 years ago.

  • Jerry m says:

    I lived in CLT during Hugo and saw a lot worse damage inland. I now live in town in Wilmington, not on he beach in a home built in the 50’s that has never had damage…. My risk is just as great as the rest of the east cost. My insurance should reflect that. Period. This is unfair and should be protested. I am already paying an additional wind and hail premium @ 2k a year that no one inland is paying. Enough is enough.

  • SurfCityTom says:

    not only do I pay premiums; one of my companies would likely be the adjuster for your claim in the event of a storm impacting the coast.

  • Guest 211 says:

    DOSEN’T MATTER WHOS IN OFFICE, THINGS WILL KEEP GOING UP. MY HOMEOWNERS INS. GOES UP, AND I DON”T LIVE ON A BEACH. ALSO PROPERTY TAXES, WITH NO IMPROVEMENTS.

  • Guest1022 says:

    Sounds like you might need to try the fingers and toes bit.

  • Guest1949 says:

    I certainly hope they can count better than you.

  • John says:

    I understand. When homeowners continuously get hit with increases in fees, taxes, penalties, and other costs, they begin to rethink their investments. Are the costs worth the investment? Hike the water bill; hike the trash bill; raise the insurance rates; raise residential parking fees; raise state, county, and local taxes. There are surely other fees, fines, and penalties that are not mentioned here. But the point is they all add to the total cost of living in a beach area (or any area for that matter).

    Will an 8-20% insurance rate increase create a desolate beach area? It probably won’t. However, renters and renting agencies will have to increase their rates to ensure revenues exceed costs. This means consumers (mostly tourists) will have to pay more.

    On the other hand, is that so bad for locals? If tourists have to pay more, that means less tourists; right? Is that what we’re trying to achieve?

    I once lived at the beach, and I know tourists can be annoying. If one more person parked in my yard, I was certain to break out my BB gun. But I realized we need those tourist dollars to fuel the local economy. So, we have to decide if the beaches are going to be exclusive to home owners or if they will be catering to tourist needs (demands).

    There was once a small desert community that decided where the focus should be. But the name of that little town escapes me. I can’t recall if it was that successful. Their insurance rates probably crippled their economy. Oh yeah…Las Vegas! They managed to integrate high-end living with a tourist economy. So, what’s going on here?

    Should the beaches be exclusive to the residents? Or should the focus be on tourism? The equilibrium point is so elusive!

  • OtherGuest says:

    Well, if you are an insurance adjuster, and you think Fran was seven years ago, maybe that helps explain a little of the problem with our insurance premiums being so high today.

  • showglo says:

    CONGRATULATIONS PEOPLE FOR NOT PAYING ATTENTION TO WHO YOU WERE VOTING FOR. ITS EASY TO VOTE ACROSS THE BOARD FOR YOUR DEMOCT OR REPLUBL BUT NOT ALL ARE WORTHY OF A VOTE. PAY ATTENTION AND I BET HE WILL NOT BE RE-ELECTED… VOTE FOR THE WORKING PEOPLE NEXT TIME THAT ARE RUNNING FOR THIS SEAT. NOT A COMPANY PERSON WHO GETS PAID BUY THE INSURANCE COMPANIES

  • Guest757 says:

    Thank you that does help

  • Guest Reply says:

    Same with Hurricane Hugo hitting Charlotte of that year. I was up there swearing that hurricane had followed us. Came home…not a scratch on the house thank goodness. Thing is…with Global Warming a threat, and the approach of another Ice Age…no telling what the weather will do…except what it wants to do (just like the insurance companies).
    Please don’t mention the Seneca Guns to the insurance companies, because that will be another increase clause…and Grandfathered in.
    Try selling your house now in Wilmington…much less trying to rent it out if moving to another area (state). You won’t even be able to attempt a “short sale” if desired.
    “Koyaanisqatsi”

  • SurfCityTom says:

    truth is that interior counties sustain far more damages, typicaly, than the coast.

    Goldsboro, Tarboro & Wilson all sustained severe damage from Fran, Dennis & Floyd. Even Raleigh took more of a hit than the Coast.

    Heck, Hugo, in 1989, did half a billion dollars of damage in the Charlotte area.

    Dennis did virtually nothing at the coast; but flooded out Rocky Mount.

    Remember Ivan in 2004? Did not even come ashore on the NC coast. Came in the Gulf in Alabama and came right up the backside of NC where it did significant damage in Asheville.

    But not to worry. Bobblehead is in charge. That’s the pseudo name for the Commissioner when he stands behind the Governor at a Press Conference and bobs his head up and down.

  • Vog46 says:

    Another ramification of “user fee” type taxation and spending.
    The coast got hammered – and the interior counties got a hefty increase as well.
    The coast does provide a disproportional amount of the risk due to our history of taking it on the chin with Hurricanes.
    I wasn’t here for it but Hazel apparently has been forgotten. Charlotte was hit pretty hard wasn’t it? Coast was spared a direct hit?
    Interesting…….

    Vog

  • B M says:

    It would be a lot easier to just pay attention to wo you are voting for and kick all the DEMORATS and RINO’s to the curb and get this spending out of control spending and big government reigned in.

  • Guest28451 says:

    Just one more reason to move out of NC.

  • anne says:

    Surprised? No. In 1987, I moved to OIB and bought a mobile home that is located between OIB and Hwy 17, about 3 miles from the beach. I had insurance up until 2010 when my insurance company canceled because I was too close to the beach. What? I have been here since 1987 in the same place, no claims on my insurance and now I am too close to the beach. Bunch of garbage. I can get insurance – it would cost me 3 times a year what I had been paying.

  • Guest Reply says:

    There won’t be enough data space on WWAY’s computer system for the comments forthcoming on this one.

    “Potential hurricane played a large role in the decision to hike rates along the Cape Fear Coast, according to Goodwin.”…..(Unquote)

    Let’s see…local home values down…Wilmington property taxes go “UP”!. Home values down…homeowners insurance goes “UP”. How about our Wind & Hail coverage? Oooops!…that’s a hidden clause within this story too…forthcoming in your next insurance bill in the next 8 weeks or so. Let’s add another 2% or 3% (or more) over the 7% to 19.8%.
    Time to recalculate again I suppose. More foreclosures…less income for “Everyone” (Insurance Companies Excluded).
    Here’s their study (most likely used to raise our rates)…and…most likely a computer models prediction. A Computer!
    http://www.hurricanecity.com/city/wilmington.htm
    From this list of stats:
    “Statistically when this area should be affected next
    before the end of the 2013 season
    This is just a statistical average & does not mean the area will be affected by that year” <<<<<<<<<<<<<<<<<<

  • Vog46 says:

    The beach counties are listed as territory 8:

    http://www.ncdoi.com/media/Documents/3-5%20NC%20Territory%20Map.pdf

    And Territory 7.
    The rates are :
    http://www.ncdoi.com/media/Documents/3-5%202013%20HO%20Rates%20by%20Territory.pdf

    I read that as 19.8% for our area.
    Or am I mis-reading something?

    Vog

  • Zeb Vance says:

    After I heard the news I checked out the document attached to the press release from the department of insurance. Apparently many of the coastal counties are receiving either 1%, 3.4% or 8.6% (Wilmington) — and NOT the “almost 20%” as you put it. I hope you correct your misleading news story; you do a disservice to your viewers and will unnecessarily stoke passions when the complete numbers are different than you report.

  • ChefnSurf says:

    Cut the crap.

    “The difference between the requested and settled rates amounts to $237 million in savings”

    The real deal is that these insurance rates are gong up almost 20%.

  • Guest987 says:

    I would like to send my increased bill to all the people who voted for our insurance commissioner so they can pay it for me.

  • B M says:

    Well no surprise here, if you re elect a democrat to such an important position you can expect some pretty dramatic consequences, yaw did it, now you get to live with it!

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