Local News

Wake homeowners should expect to see 10% hike in homeowners insurance rates next year

Posted November 24, 2021 10:44 a.m. EST

FILE -- A neighborhood in New Bern, N.C., flooded by Hurricane Florence on Sept. 15, 2018. Real estate markets are already feeling the effects of climate change, researchers say. (Victor J. Blue/The New York Times)

— Homeowners insurance in North Carolina is getting more expensive, but not by as much as insurers wanted.

Across the state, homeowner's insurance rates will rise by nearly 8% on average under a settlement announced Wednesday between the North Carolina Department of Insurance and the North Carolina Rate Bureau.

In Durham and Wake counties, rates are rising by nearly 10%. Coastal counties like Brunswick, New Hanover, Currituck and Dare will also see an insurance rate increase of nearly 10%.

The Bureau had proposed a 24.5% average rate increase due to more wind and hail losses from damaging storms. That rate was negotiated down to the current 7.9%. 

Mike Causey, commissioner for the Department of Insurance, said this negotiation saved homeowners $751 million in premium payments.

"I am glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money," Causey said in a release.

These changes will go into effect after June 1, 2022. The North Carolina Rate Bureau would not be able to raise insurance rates again until 2024, officials said in a press release.

Our commenting policy has changed. If you would like to comment, please share on social media using the icons below and comment there.