RALEIGH — The N.C. Department of Insurance has ended a legal dispute with the North Carolina Rate Bureau on its proposed 24.5% homeowners’ insurance rate increase to instead settle on a statewide average rate increase of 7.9%.
Insurance Commissioner Mike Causey announced the settlement in a news release Nov. 23. The agreement means a hearing scheduled for Monday, Jan. 3 has been canceled.
“I am happy to announce that North Carolina Homeowners will save over $751 million in premium payments compared to what the NCRB had requested,” Mr. Causey said in the release. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
On Nov. 9, 2020, the NCRB, which represents companies writing property insurance in the state and is not part of the NCDOI, proposed an overall statewide average increase for insurance rates of 24.5%. The actual rate increase varied by territory, with Carteret County among the areas that would have seen a 25% increase, the highest in the state.
Instead, beach and inland areas of Carteret County, along with other coastal counties and some inland ones, as well, will have a 9.9% rate increase on homeowners’ insurance. More western regions of the state will see a 5.9% increase on rates, putting the average statewide increase at 7.9%.
The increase will take effect on new and renewing policies beginning or after Wednesday, June 1, 2022. As part of the insurance commissioner’s agreement, the rate bureau will not seek another homeowners rate increase until 2024 at the earliest, meaning this rate change will be in effect until at least 2024.
To see the list of rate increases by territory, go to ncdoi.gov/media/2430/open.