There’s significant news in North Carolina regarding potential adjustments to homeowners’ insurance rates. The North Carolina Rate Bureau, responsible for overseeing insurance rates in the state, has proposed an average increase of approximately 42.2%. While this proposal is targeted for implementation on August 1, it is still subject to regulatory procedures.
Certain regions, particularly coastal areas like Carteret and Onslow Counties, may experience substantial spikes, with a possibility of up to a 99.4% increase. Even coastal segments within these counties could see a notable rise of 71.4%, while Duplin and Lenoir Counties might encounter a 71.3% increase.
It’s essential to note that the Rate Bureau represents the interests of insurance companies operating in the state and operates independently of the North Carolina Department of Insurance.
This recent rate filing echoes a similar event in November 2020 when the Rate Bureau sought an overall average increase of 24.5%. Following negotiations, Commissioner Causey and the Rate Bureau settled on a 7.9% increase.
The regulatory process mandates a public comment period, allowing stakeholders an opportunity to express their opinions on the proposed rate adjustments. If the Department of Insurance authorities find the proposed rates disagreeable, they retain the option to reject them outright or engage in negotiations with the North Carolina Rate Bureau. In the absence of an agreement within 50 days, a formal hearing may be convened.
Unfortunately, it isn’t just North Carolina who’s facing significant rate increases. Across the state of Colorado, homeowners are seeing rate increases to their home insurance, as much as 50% more than the years previously.