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Homeowner insurance rates to rise 4%

Posted December 18, 2008

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— Insurance Commissioner Jim Long signed a settlement agreement with homeowners insurance companies Thursday, allowing rates to increase by an average of 4.05 percent.

The new rates, which become effective beginning May 1, call for premiums to go up by 5 percent in Raleigh and Durham and by 4 percent in Fayetteville.

Rates in most Triangle counties are expected to increase by 2 percent, and homeowners in Person, Granville, Vance and Warren counties might even drop by 3 percent.

The North Carolina Rate Bureau, which represents all of the homeowners insurance companies doing business in the state, had requested a 19.5 percent average rate increase.

“There has been a lot of speculation surrounding this homeowners rate filing, but I feel that we’ve reached a settlement that is fair to both consumers and insurance companies in North Carolina,” Long said in a statement. “No one likes to see their insurance rates go up, but the industry made a strong case for allowing some increases this year. The silver lining is that most consumers won’t see nearly the increases that were initially proposed.”

The settlement also realigns several insurance territories along the coast so that homeowners who live farther inland pay less for insurance. Long said that makes sense because these homes have less exposure to the impact of a hurricane.

The increase will be the first since May 2007, when homeowners insurance rates went up 5.4 percent.

The approved rates are the highest allowable rates that companies can charge. Companies often offer discounts, which can lower what homeowners pay, he said.

44 Comments

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  • bs101fly Dec 19, 2008

    SO glad to see THIS story crashing down the tube of non-stories!
    I guess people don't care about the fact this is a MIS-PRINT and the % is actually 30+% for ALL homeowners in the triangle!
    It's obvious the media doesn't care, since they aren't talking about it!!

  • kopfjaeger2001 Dec 18, 2008

    The economy is tanking and yet we will have to pay more for insurance? People are struggling, but as long as someone can show a profit, I guess that ok as long as it's not the consumer.

  • bs101fly Dec 18, 2008

    folks WAKE UP. It has been reported to be as much as 30+%.
    Let me say it again,

    THIRTY PLUS PERCENT

    on TOP of what you're paying now!!! Are you ready to sit idle and not fight that??? If you are, send me a check every week, you have more than you deserve!

  • CrewMax Dec 18, 2008

    "The increase will be the first since May 2007, when homeowners insurance rates went up 5.4 percent."

    Ah, jeez, has it been that long?

  • WRAL is joe_dirt Dec 18, 2008

    Yea, instead of minding their own budget and trimming their own overhead (like homeowners have had to do), now they'll just gouge the homeowners again. Great business strategy!

  • Eduardo1 Dec 18, 2008

    your headline is not true. According to the text copy that was in the body of the story, you show 2% 3% 4% and so on. If you mean the average is 4%, then it should be written that way

  • really02 Dec 18, 2008

    Yet another reason not to buy a house.

  • DRA Dec 18, 2008

    lets see people are losing there jobs and losing there homes cant even afford the basic things in life and they raise ins rates. yeh this sounds like somthing nc would do GREEDY GREEDY people but yet they say there looking out for us YEH RIGHT !!!!!

  • bs101fly Dec 18, 2008

    4%??? That's funny, last night one of the local news guys said 30+% for the triangle.

    SO WHICH IS IT???????????? I'm sick of getting one piece of info from one channel and something COMPLETELY different from someone else.
    How about your "reporters/entertainer wannabe's get the facts correct from the beginning and ALL of you work off the same play sheet!

  • Slip Kid Dec 18, 2008

    This is a subsidy to all the coastal home owners who get insurance for ocean front homes that shouldn't be insurable in the first place.

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