North Carolina Rate Bureau Wants 42% Hike in Residential Property Insurance Rates

The North Carolina Rate Bureau, basing its calculations on input from 197 property insurance companies, has asked for a 42% average increase in homeowners insurance rates, to take effect Aug. 1.

The rate bureau’s double-digit requests in recent years have usually been greatly reduced after negotiations with the state’s insurance commissioner. After a 2020 requested increase of 24.5%, for example, the final rate ended up at 7.9%, Commissioner Mike Causey’s office said in a statement.

The latest request will be the subject of a public hearing Jan. 22, starting at 10 a.m. at the Jim Long Hearing Room at 325 N. Salisbury St. in Raleigh. Virtual access to the hearing will be available here. Public comments will be accepted at the hearing or may be emailed to NCDOI.2024homeowners@ncdoi.gov by Feb. 2.

The rate bureau’s filing shows that rate increases would vary by territory, by type of coverage and by type of structure. Homeowner policy rates would rise by 42.4%; tenants by 34.3%; and conominium units by 44.6%.

The need for the increase is based on insurers’ loss costs for 2017 through 2021; expense ratio trends, and the cost of reinsurance, the filing indicates.