Base rates for North Carolina homeowners’ insurance premiums will increase by about 15%, on average, by mid-2026 as part of a settlement reached by the state Insurance Department and the industry.
Insurance Commissioner Mike Causey said the North Carolina Rate Bureau, which represents insurance companies, asked last year for a 42.2% overall average increase.
Causey formally rejected the bureau’s request last year, which led to a formal hearing that included multiple weeks of witnesses, evidence and arguments.
Causey said the proposed rate increases “are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims.”
The increases will vary based on location. The highest will be in parts of eastern North Carolina hit hard by Hurricane Matthew in 2016 and Hurricane Florence in 2018; for example, beach areas from Carteret to Brunswick counties will see an average 16% increase in mid-2025 and an additional 15.9% in mid-2026.
