North Carolina property owners have a bit more breathing room today following a major settlement on dwelling insurance rates.
State Insurance Commissioner Mike Causey announced yesterday that his office has reached a deal with the North Carolina Rate Bureau to cap dwelling rate increases at five percent per year for the next two years. This is a significant drop from the nearly 68 percent total hike originally requested by insurance companies back in October.
The first five percent increase will take effect this October, followed by another five percent in October 2027. Causey says the agreement will save consumers more than $268 million dollars and cancels a public hearing that had been scheduled for July.
The new deal also includes special credits for owners who invest in fortified roofs and other storm-resistant upgrades, particularly in eastern North Carolina.
Dwelling insurance typically covers non-owner-occupied properties like rentals and vacation homes, rather than primary residences.
Meanwhile, officials with the Rate Bureau say the approved increase falls short compared to the extensive claims data they’ve seen. COO Jarred Chappell said with billion-dollar disasters and rising construction costs driven by inflation, risks and expenses are climbing faster than rates can keep up.
This rate-setting decision affects how willing carriers are to write policies in North Carolina. As competition shrinks, Chappell said more homeowners are turning to state-run insurance pools like the Beach Plan and FAIR Plan for coverage.
The settlement applies only to dwelling policies—those covering rental or secondary homes—not to primary homeowners’ insurance. Chappell says the hope is that this agreement will help stabilize the market and keep coverage available for North Carolinians.
