North Carolina’s top insurance regulator has rejected the industry's request for a 42% average increase in homeowners’ insurance premiums.
Insurance Commissioner Mike Causey denied the request and scheduled a hearing for October to evaluate what average increases would be reasonable.
Earlier this year, the North Carolina Rate Bureau submitted the request on behalf of insurance agencies. It says rate hikes are needed to cover the rising cost of building materials and respond to more intense storms.
The 42% figure is the average increase statewide. Folks on the coast face steeper increases. Beach areas in Brunswick, Carteret, New Hanover, Onslow and Pender Counties would pay double their current premiums under the proposed rate increase. Coastal areas of Carteret and Onslow Counties face a 70% hike, while people in Jones, Craven, Beaufort and Washington Counties could see a 25% increase.
In previous proposals, the state settled with the Rate Bureau before the hearing took place. Causey anticipates settling again. At what rate though will be hashed out in negotiations.
"Every rate request that's come to me, I've said no," Causey told a crowd at the Waterfowl Museum on Harkers Island in January. "But the insurance companies can say 'Can we talk about a settlement?'"
Causey's been state insurance commissioner since 2017. The last time there was a homeowners increase was 2020. Then, insurance companies asked for a 24% statewide average increase, but later settled for just an 8% average. Beachfront and most coastal properties saw a 9.8% increase in the 2020 negotiation.
