Insurance firms seek 42% rate hike for NC homes with 99% increase at coast, officials say

RALEIGH, N.C. (WNCN) — Insurance companies are seeking a more than 40 percent average rate increase for coverage of homes in North Carolina with much higher rates sought at the coast, according to a Friday news release from the North Carolina Department of Insurance.

The North Carolina Rate Bureau, which represents companies that write insurance policies in the state, is requesting a 42.2 percent rate increase for homeowners’ insurance, the news release said.

The highest rate increases — at 99.4 percent — would essentially double costs for homeowners in beach areas in Brunswick, Carteret, New Hanover, Onslow, and Pender counties, the news release indicated. Insurance companies are seeking a 39.8 percent hike for homes in Durham and Wake counties, including Raleigh and Durham.

Under the proposal from the insurance companies, the rate hike would go into action on Aug. 1.

An earlier rate increase request for homeowners insurance from the bureau in November 2020 was for an average hike of 24.5 percent in North Carolina. However, after a settlement with the North Carolina Department of Insurance, the overall rate increase ended up being 7.9 percent, the news release.

A public comment period is required by law to give the public time to address the proposed 42.2 percent rate increase.

All public comments will be shared with the North Carolina Rate Bureau.

If North Carolina Department of Insurance officials do not agree with the requested rates, the rates will either be denied or negotiated with the North Carolina Rate Bureau. If a settlement cannot be reached within 50 days, Department of Insurance Commissioner Mike Causey will call for a hearing.

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