Insurance commissioner rejects proposed NC homeowners rate increase
Insurance Commissioner Mike Causey on Friday rejected a proposal from insurers to raise rates on homeowners policies by an average of more than 18 percent.
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"We are not in agreement with the Rate Bureau’s proposed increases," Causey said in a statement. "After hearing and reading the more than 9,000 comments from residents across the state and studying the figures in the filing, it is now necessary to hold a hearing to reach a resolution that will make the most financial sense for our residents and insurance companies."
A hearing on the proposal is set for July 23, but the North Carolina Rate Bureau, which represents insurers, is expected to negotiate with Causey's staff in the coming months to see if they can reach a compromise before then.
Insurance companies say the increase is needed to cover their rapidly rising costs, and even more increases could be needed in the near future.
The proposed increase varies widely around the state. Homeowners in some mountain counties would see a small decrease, but in eastern North Carolina, the rate could jump by 25 percent. Rental and condo insurance would cost nearly 30 to 40 percent more statewide.
The last battle between insurers and state regulators over rates occurred in 2014, when the Rate Bureau sought a 25 percent average increase but got none of it when the state Court of Appeals upheld then-Insurance Commissioner Wayne Goodwin's rejection of the entire request.
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