NC Rate Bureau Asks for 18.7 Percent Rate Hike for Homeowners Insurance

If the Department of Insurance cannot reach an agreement with 50 days of the end of public comments, a hearing will be called. If the case ends up going to a hearing, a hearing officer will rule on the rate changes, setting the maximum allowable rate increase.

The North Carolina Insurance Commissioner, Mike Causey recently announced that the North Carolina Rate Bureau would request a statewide average increase in homeowners insurance of 18.7 percent for 2018. The NC Rate Bureau works in conjunction with the insurance companies in the state and the NC Department of Insurance will rule on the request.

This is the first rate increase filing from the Rate Bureau since 2014. The 2014 request resulted in a homeowners hearing, the first in over 20 years and in the end the Insurance Commissioner denied the request siding with policyholders in the state.

Rates have not changed due to a request from the Rate Bureau since 2012 when they requested a rate increase of 17.7 percent. This figure got knocked down to 7 percent after being negotiated down.

As per state law, a public comment period will be opened in regards to the rate increase to allow the public to weigh in on the proposed rate increase. If you are interested in making a comment, there are three ways for your voice to be heard on this issue:

• Forum: The Department of Insurance will hold a public comment forum allowing the public to comment on the changes. The hearing will be held from 10 a.m. to 4:30 p.m. on Dec. 12, 2017 in the NC Department of Insurance’s Second Floor Hearing Room, which is located at the Albemarle Building, 325 N. Salisbury St., Raleigh, NC.
• Email: You can email your comments to [email protected] but all public comments must be received no later than December 29^th, 2017.
• Written Comments: Written comments can be mailed in to Tricia Ford at: 1201 Mail Service Center, Raleigh, NC 27699-1201 and must be received by December 29^th.

All of these public comments will be shared with the NC Rate Bureau and the Department of Insurance. The Department of Insurance officials will make a ruling on the request and if it is denied or they do not agree with the requested change they will negotiate with the NC Rate Bureau.

If the Department of Insurance cannot reach an agreement with 50 days of the end of public comments, a hearing will be called. If the case ends up going to a hearing, a hearing officer will rule on the rate changes, setting the maximum allowable rate increase.

At this point, if either side appeals the rate increase, the appeal would have to go through the North Carolina court system.

How to Lower Your Rates

There is no way of predicting exactly what will happen in regards to the rate increase request but there is a good chance that homeowner insurance rates in North Carolina will be heading up in the New Year.

Here are a few tips to help you keep your premium costs in check regardless of what happens with the proposed rate increase:

• Shop Your Coverage: This is absolutely the best way to lower your insurance costs. Shop your coverage on a yearly basis and always make sure that you are comparing apples to apples in regards to coverage levels and deductibles. Insurers rate risk differently so there can be dramatic differences in premium quotes. We can help you shop and compare up to 12 competitive quotes that will also include Wind/Hail coverage and Flood Insurance if needed. Our top rated carriers include Travelers, Safeco Insurance, Kemper, The Hartford, Progressive, Zurich, Metlife, Bankers Insurance, Harleysville, North Carolina Joint Underwriting Association (NCJUA/NCIUA) and many more.
• Up Your Deductible: If you can afford it, upping your deductible will almost always result in a lower premium. If possible, double your deductible but always make sure it is an amount you can easily afford in the event you have to make a claim on your policy. While the savings will vary, expect to save up to 20 percent if you push up your deductible.
• Discounts: Insurance companies offer a wide variety of home insurance discounts and getting all of the discounts that you are entitled to receive is a great way to lower your insurance costs. Ask your insurance agent to do a discount review to make sure all available discounts are being applied to your policy.
• Upgrade Your Home: Making improvements to your home can help reduce the cost of your homeowners insurance. Adding a monitored security system can result in a 20 to 25 percent discount and replacing your roof with wind resistant materials can also result in significant savings. Check with your agent to see which home improvements will give you the biggest savings.