Homeowners Insurance

Homeowners Insurance Policy

Previously reported – January 2020
Coastal insurance rates soar again. Is system broken?
If you own a home in coastal North Carolina but don’t live in it, you will likely see an increase in the premium you pay for wind insurance beginning July 1. The group that represents insurance companies recently struck a deal with the N.C. Department of Insurance that will result in a statewide average 5.3% increase for wind coverage for non-owner-occupied residences. The N.C. Rate Bureau, a state-mandated group that represents insurance companies, had requested a 24.3% increase in wind-coverage premiums and a 4.6% hike in fire coverage. No increase in fire premiums was allowed. Although the 5.3% average increase in wind coverage is a far cry from the original request, it falls almost completely on coastal areas, where it’s more in the 10%-and-above range. The Insurance Department stressed that the settlement does not affect homeowner policies. “Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner,” the department stated in a news release. In September, the Department of Insurance reached a similar deal with the Rate Bureau on homeowners’ policies. The bureau had proposed a 17.4% statewide overall increase. The settlement approved a 4% average increase, but, as with the dwelling agreement, most of the increase was felt at the coast.
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Previously reported – February 2021
Insurance companies request rate increase for homeowners
The North Carolina Rate Bureau (NCRB) has requested a 24.5 percent statewide average increase in homeowners’ insurance rates to take effect August 2021, according to a news release issued Nov. 10 by state insurance commissioner Mike Causey. The NCRB is not part of the N.C. Department of Insurance but represents companies that write insurance policies in the state. The department can either agree with the rates as filed or negotiate a settlement with the NCRB on a lower rate. If a settlement cannot be reached within 50 days, Causey will call for a hearing. Two years ago, in December 2018, the NCRB requested a statewide average increase of 17.4 percent. Causey negotiated a rate 13.4 percentage points lower and settled with a statewide aver-age rate increase of 4 percent. One of the drivers behind this requested increase is that North Carolina has experienced increased wind and hail losses stemming from damaging storms. A public comment period is required by law to give the public time to address the NCRB’s proposed rate increase.
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  • To see a table of proposed homeowners’ rate increases go to: click here
  • Territory 120 / Beach areas in Brunswick County / NCRB proposed increase 25%

  • Insurance commissioner sets hearing date in dwelling insurance rate hike case
    North Carolina Insurance Commissioner Mike Causey has set Jan. 18, 2022, as the hearing date for the North Carolina Rate Bureau’s proposed 18.7% dwelling insurance rate increase. “We are not in agreement with the Rate Bureau’s proposed increase filed in December,” Commissioner Causey said. “I want to make sure that the process is transparent, and that consumers’ interests are protected while making sure our insurance companies remain healthy so they can pay claims.” The Rate Bureau is not part of the Department of Insurance. It represents all companies writing property insurance in the state. The notice of hearing said that some of the data included in the Rate Bureau’s Dec. 14, 2020, filing contained a lack of documentation, explanation, and justification of both the data used as well as the procedures and methodologies used. The hearing is set for 10 a.m. Jan. 18, 2022, in the second-floor hearing room in the Albemarle Building, 325 N. Salisbury St., Raleigh. The hearing will take place unless the N.C. Department of Insurance and the N.C. Rate Bureau are able to negotiate a settlement before that date. State law gives the Insurance Commissioner 45 days to issue an order once the hearing concludes. Once the order is issued, the NCRB has the right to appeal the decision before the N.C. Court of Appeals. A Court of Appeals order could then be appealed to the N.C. Supreme Court. The NCRB and DOI can settle the proposed rate increase at any time during the process. Dwelling insurance policies are not homeowners’ insurance policies. Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner. The filing covers insurance for fire and extended coverage at varying rates around the state. Under the NCRB proposal, the increases would be felt statewide with most consumers seeing a double-digit increase. The last NCRB dwelling rate increase filing was in 2019 that resulted in a settlement of 4%, which took effect July 1, 2020.
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Causey sets hearing date in dwelling insurance rate hike case
North Carolina Insurance Commissioner Mike Causey has set Jan. 18, 2022, as the hearing date for the North Carolina Rate Bureau’s (NCRB) proposed 18.7% dwelling insurance rate increase. We are not in agreement with the Rate Bureau’s proposed increase filed in December, Commissioner Causey said. “I want to make sure that the process is transparent, and that consumers’ interests are protected while making sure our insurance companies remain healthy so they can pay claims. The Rate Bureau is not part of the Department of Insurance. It represents all companies writing property insurance in the state. The notice of hearing said that some of the data included in the Rate Bureau’s Dec. 14, 2020, filing contained a lack of documentation, explanation, and justification of both the data used, as well as the procedures and methodologies used. The hearing is set for 10 a.m. Jan. 18, 2022, in the second-floor hearing room in the Albemarle Building, 325 N. Salisbury St., Raleigh. The hearing will take place unless the N.C. Department of Insurance and the N.C. Rate Bureau are able to negotiate a settlement before that date. State law gives the Insurance Commissioner 45 days to is-sue an order once the hearing concludes. Once the order is issued, the NCRB has the right to appeal the decision before the N.C. Court of Appeals. A Court of Appeals order could then be appealed to the N.C. Supreme Court. The NCRB and DOI can settle the proposed rate in-crease at any time during the process. Dwelling insurance policies are not homeowners’ insurance policies. Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full-time by the property owner. The filing covers insurance for ire and extended coverage at varying rates around the state. Under the NCRB proposal, the increases would be felt statewide with most consumers seeing a double-digit increase. The last NCRB dwelling rate increase filing was in 2019 that resulted in a settlement of 4%, which took effect July 1, 2020.
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Beacon

Previously reported – November 2021

NC DOI Again Postpones Hearing on 25% Homeowners Rate Hike
A hearing set for today on a proposed 24.5% average increase in homeowners’ insurance rates has been postponed until Jan. 3, the North Carolina Department of Insurance announced. The rate increase was recommended by the North Carolina Rate Bureau one year ago and has met with stiff opposition from realtors and homeowner groups since then. The Rate Bureau is not part of the insurance department but represents insurers in the state. Insurers have said that increased wind and hail losses from storms are the main drivers behind the requested increase. Insurance Commissioner Mike Causey said in a news release that the January hearing will proceed if the department and the rate bureau cannot negotiate a settlement for a lower rate increase. This is the second time the hearing has been postponed. A Sept. 20 meeting was rescheduled for today, Nov. 1. The recommended increase follows one in 2018, in which the bureau asked for a statewide average hike of 17.4%, but later settled for a 4% increase. In April of this year, the bureau had proposed an 18.7% average increase in dwelling insurance, for rental and investment properties, but settled for a 7.6% rise after negotiating with the department. If the two sides do not reach a compromise, the hearing on the latest proposed increase will be Jan. 3 at 10 a.m. in the Albemarle Building, 325 N. Salisbury St., in Raleigh.
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