Insurers ask NC to hike homeowners rates by 42.2%

North Carolina homeowners are bracing for a rate hike after insurers asked the state to approve an average increase of 42.2%.

The North Carolina Rate Bureau made the request, claiming the industry is losing money insuring homes in the state.

In 2020, the NCRB asked for a 24.5% increase. That proposal was ultimately negotiated down to 7.9% following discussions with Insurance Commissioner Mike Causey.

That was the last time homeowners rates went up. Since then, NCRB Director Jarred Chappell says, inflation has hit the industry pretty hard.

"A lot of the material costs that go into home repair and the labor to do the repairs – the cost of that has changed pretty drastically in that time," he said.

He added that climate change is making storms more intense, yet more and more people are moving to coastal areas and building more expensive properties.

The NCRB is asking to almost double the insurance rates for beach communities. The average yearly insurance bill in that area would go from $5,626 to $11,196.

In Wake and Durham counties, the bureau is asking for a rate increase of 39 percent. The average yearly bill for home insurance in those counties would go from $1,293 to $1,797.

Jason Tyson, spokesman for the state Department of Insurance, said experts will go through the proposal and work with the rate bureau to negotiate a lower increase.

"The Rate Bureau has the right to request that, and we have the right to knock it down," he said. "We have the right to negotiate with them on behalf of North Carolinians who are trying to count every penny."

Homeowners and other state residents have a say, too. The request will undergo a mandatory public comment period. There are four ways to provide comments:

• A public comment forum will be held to listen to public input on the North Carolina Rate Bureau’s rate increase request at the North Carolina Department of Insurance’s Jim Long Hearing Room on Jan. 22 from 10 a.m. to 4:30 p.m. The Jim Long Hearing Room is in the Albemarle Building, 325 N. Salisbury St., Raleigh, N.C. 27603.
• A virtual public comment forum will be held simultaneously with the in-person forum on Jan. 22 from 10 a.m. to 4:30 p.m. The link to this virtual forum will be: https://ncgov.webex.com/ncgov/j.php?MTID=mb3fe10c8f69bbedd2aaece485915db7e
• Emailed public comments should be sent by Feb. 2 to: NCDOI.2024Homeowners@ncdoi.gov.
• Written public comments must be received by Kimberly W. Pearce, Paralegal III, by Feb. 2 and addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201.

North Carolina is the only state that decides insurance rates this way.

People who spoke to WRAL News couldn’t believe it.

"I think that’s absolutely ridiculous, especially when you don’t use your insurance all the time," said Renee Gresham.

Pablo Peralta said, "It’s too much money. Forty-two percent is crazy."