Good News, Bad News – North Carolina Home Insurance Rates
It looks like it’s going to be a good news, bad news situation in North Carolina this year when it comes to homeowners insurance rates.
Let’s start with the good news. The Rate Bureau, which represents insurance companies operating in North Carolina requested an average 24 percent increase on homeowners insurance rates across the state. The North Carolina Department of Insurance rejected this request and ended up approving an average rate increase of 7.9 percent which will go into effect on June 1, 2022.
If your home is close to the coast, you will most likely see a bigger increase. Due to the increased risk of storm damage, homes located in a coastal area will see an increase closer to 10 percent while homes located further from the coast, in Triad for example, will see a rate increase closer to 6 percent.
On the other hand, the bad news is that if your home is damaged by a storm in the near future, you will not only be paying higher rates for coverage due to the rate increase, the cost to rebuild or repair your home will also cost more due to supply chain issues and inflation. In short, due to rapidly rising construction costs, you may need to up the coverage levels on your home.
“If your homeowners policy covers your $200,000 house and now it would take $250,000 to insure your home, you have an approximately 20% rate increase to do that. Plus, another rate increase on top of that of 6% coming in June. So, it’s going to feel a little more substantial to your viewers,” said Christopher Cook with Alliance Insurance Services in a recent WFMY News article.
If you are concerned about your coverage levels, you should start shopping your coverage now. Insurance companies rate risk differently which can result in dramatic differences in premium quotes. Always be sure you are comparing apples to apples when it comes to coverage levels and deductibles.
While North Carolina homeowners can expect their homeowner insurance rates to increase this year, there are ways to help keep your premium affordable. Here are a few tips to help you save some money:
Shop around: This is the best way to lower your homeowners insurance costs. Premiums can vary dramatically between insurers, so it is always a good idea to shop your coverage on a yearly basis. Get quotes from at least five different insurance companies. Top Quoted Areas: Raleigh, Charlotte, Greensboro, Wilmington
Discounts: Insurers offer a variety of discounts to their customers and many of them can be substantial. Ask your agent to do a discount review to make sure all discounts that you qualify for are being applied to your policy.
Home improvements: If you live in an area that is prone to severe weather, upgrading your home can result in major discounts. Replacing your roof with wind resistant materials, adding a sprinkler system, or a monitored alarm system can also result in major discounts. Contact your insurer to see what improvements would help lower your insurance costs.
Raise your deductible: Raising your deductible will lower your premium. If you can afford to double your deductible, you should see significant savings. Always choose a deductible that you can easily afford in case you have to make a claim on your policy.