NC Home Insurance Rates Possibly Increasing
On October 1, 2012, the North Carolina Rate Bureau (NC RB) filed a request for an increase in homeowner insurance rates with the North Carolina Department of Insurance (NC DOI) on behalf of North Carolina insurance companies. The number one argument for the rate increase appears to by a rise in claim costs. The average statewide rate increase would be 17.7%, but coastal properties could see an increase of 30%. According to the Wilmington Regional Association of Realtors,
“Brunswick, Carteret, New Hanover, Onslow, Pender – Coastal Areas (areas east of the intracoastal waterway) will have an increase of approximately $457 per year based on $75,000 of coverage and the mainland areas in those same counties (areas inland of the intracoastal waterway) will have an increase of approximately $315 per year based on $75,000 of coverage.”
If approved, the rate increases would go into effect on June 1, 2013 for all policies renewed or going into effect.
From the date of filing, NC DOI has 50 days to respond, approve the rate, or negotiate the rates. However, legislation passed earlier this year requires for them to call for public comments for rate changes. Ultimately, the decision is up to the NCDOI and the NC RB doesn’t usually get the full amount they request. The last increase was 4 years ago. When the insurance companies asked for a 20% statewide increase, they only received 4%. But this was after hearing from the public. So make your voice heard!
The public comment period has been scheduled for October 17 at 9:30am. Comments can be emailed to 2012homeowners@ncdoi.gov or sent via tweet at @NCInsuranceDept.
