Coastal homeowners face insurance rate hikes

WILMINGTON, NC (WWAY) — Homeowners across North Carolina will see an increase in their insurance rates starting this month, with the highest hikes impacting coastal communities.

The North Carolina Rate Bureau, which represents the insurance industry, announced the change after several years of negotiations. The rate increases will roll out in two phases, with the full hike expected to take effect by next year.

Insurance rates will vary depending on location. Inland areas will see a 7% increase. Mainland properties will see about a 10% increase. Homes along the coast, including parts of New Hanover, Pender and Brunswick counties, will experience a 16% increase.

According to Josh Whitaker, vice president of Coastline Insurance in Wilmington, the change is tied to coastal risk.

“Of course we are here at the coast so the coastal exposure and fear of hurricanes and large catastrophic losses and events drives a lot of that,” Whitaker said.

The second part of the increase will begin in 2025. By then, the total increase could reach around 32% for coastal properties.

Whitaker said the rollout is happening in stages.

“It’s been a constant conversation but the good news is instead of taking one large rating they are breaking up a smaller rating over a two-year period,” he said.

The North Carolina Insurance Underwriting Association (NCIUA) is also offering a fortified roofing program. The grant helps homeowners in coastal areas strengthen their roofs. Once the work is complete, homeowners may qualify for wind mitigation credits. Those credits could reduce insurance premiums by 8% to 10%.

Whitaker said weather trends may affect future rates.

“I do think you can expect these to continue unfortunately,” he said. “I think the best thing if we are optimists is hope to see a quiet hurricane season… we’ve been pretty fortunate the past few years and a lot of times if we can go longer periods of time you might see a little bit more stability.”