Reaction to proposed homeowner insurance rate increase as hearing draws near

CAROLINA BEACH, NC (WWAY) — As thousands of North Carolinians continue to rebuild following two strong storms hitting the state, a hearing on Monday could have major impacts on their insurance.

Back in January, the State’s Rate Bureau submitted a proposed homeowner insurance rate increase of 42% statewide, with a 99% increase in rates for coastal areas and beach towns.

While the hearing is being held on Monday, an official rate is not expected to be given until late November.

The Rate Bureau said the increases are due to inflation and damage caused by severe storms like Hurricane Florence.

State Insurance Commissioner Mike Causey rejected the proposal, saying the rates were unfairly focused on certain areas of the state.

“So when I said no, so the rates, certainly they were adequate but they were, to me, way more than adequate,” Causey said. “So I deemed the rates were excessive and they were unfairly discriminatory to certain parts of this state and so that, you know, that was the basis for me saying no.”

Gail Longnecker owns a property in Carolina Beach and said she can’t believe the rates could increase due to a storm that happened 6 years ago.

“They’ve lost their minds,” Longnecker said. “That is also insane, my house got flooded 3 feet during Florence. They paid for my hotwater heater, that’s all my flood insurance paid for. Because of these limitations that it has to be at least 10 feet. That’s my only thing, there are thousands just like me. If you;re going to increase our rates, if the water comes in a foot, our damages should be paid for.”

Causey added that damages caused by Hurricane Helene and Potential Tropical Cyclone 8 are not being considered as a cause of the rate increases because of how recently they happened.