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State rejects proposed homeowners insurance increases

Posted December 19, 2014

North Carolina Insurance Commissioner Wayne Goodwin on Friday limited homeowners insurance rate increases, rejecting insurers requests to raise rates by an average of 25 percent statewide.
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— North Carolina Insurance Commissioner Wayne Goodwin on Friday limited homeowners insurance rate increases, rejecting insurers' requests to raise rates by an average of 25 percent statewide.

“The rates I have ordered are the result of the most thorough inspection of North Carolina homeowners insurance rates in more than 20 years,” Goodwin said in a statement. “After considering all of the evidence and data available, I have determined that no factors or events justified the excessive rates requested by the insurance companies.”

The rates that take effect next June vary by territory and type of insurance. On average, homeowners insurance rates will drop by 0.3 percent, renter’s insurance rates will go up by 11.2 percent and condo owner’s insurance rates are to increase by 8.1 percent.

In Wake and Durham counties, for example, the approved rate will drop by 4.1 percent, compared with a requested increase of 24.8 percent in Raleigh and Durham and 32.6 percent elsewhere in the counties.

Homeowners in Orange and Chatham counties will see their rates drop by 14.3 percent, while those in Cumberland County will see a 0.6 percent decrease.

Goodwin approved the largest rate increase, 21.4 percent, in Avery and Mitchell counties, and other locations in western North Carolina also will see hefty increases. Meanwhile, homeowners along the coast, who usually see insurance rates spike will mostly see lower rates next year.

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  • trust the truth Dec 19, 2014

    Why should homeowners be forced to shop around for better rates because of the consent to rate letters and increases?
    All that has to happen is that the State Legislature needs to close the loophole that allowed these illegal consent to rate increases to come into being.

  • Alexia Proper Dec 19, 2014
    user avatar

    For those who have received those "consent to rate increase" letters, seriously: don't sign them. Just switch insurance providers. My insurer provided me with such a letter. Not only did I find a provider who did not require such a letter, but I shaved my bill by about 40% with the same coverage. And the new insurance company is a well-respected insurer in the state.

    Do some comparison shopping. The insurer who does not force these letters on customers are the big winners and they know it.

    I just can't understand how my old insurance company could so easily let me walk out the door taking all my business elsewhere. Huge loss for them and good gain for me.

  • Alexia Proper Dec 19, 2014
    user avatar

    View quoted thread


    The probably do pay less.

  • David Collins Dec 19, 2014
    user avatar

    Condo owner's insurance should increase less than a home owner because a condo owner only insures the contents and inside the structure.

  • Scott Weaver Dec 19, 2014
    user avatar

    Why the heck does the govt have any say in this matter at all? No justification at all.

  • johnwesleyman Dec 19, 2014

    People...lots of bad info on here. First of all the ctr's (consent to rate letters) are state law. Contact your representative if you have an issue with this as the commissioner of insurance is bound to uphold state law...not make it. Second, if you sign a consent to rate you are not bound by it. You can still shop around. Remember though that if you do sign it, that company will increase your rate up to 250% of the approved (by doi) maximum rate and can do so in future years without you having to sign another. Third, if you do not sign the letter, the company will most likely cancel you as they do not have to offer you automatically a renewal. It is NOT illegal for them to drop you. Shop, shop, shop. There are better rates out there. Contact an independent agent who represents several companies. Finally, contact the consumer division of the NC Dept. of Insurance.

  • MinorityWillbeNewMajority Dec 19, 2014

    seriously everyone needs to switch to Amica. Not sure what took me so long. I had fallen for that '15 minutes could save you blah blah blah' I guess.

  • SAY 'WHAT" ONE MORE TIME! Dec 19, 2014

    View quoted thread


    Don't sign it

  • stymieindurham Dec 19, 2014

    Mine has already gone up 100% since McCory became governor!!
    ==================================
    WOW!! That's amazing. And can you also tell how much he is getting from your 100% rate increase????

  • Arthur Raleigh Dec 19, 2014
    user avatar

    Mine has already gone up 100% since McCory became governor!!

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