NC Says No to Homeowners’ Insurance “temporary” Rate Hike
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North Carolina Insurance Commissioner says “NO” to rate hikes in support of North Carolina homeowners.
Homeowners in North Carolina recently received a temporary reprieve from the requested 18.7% increase for homeowners rates. The insurance Commissioner, who has final say on rate hikes rejected the rate increase that had been made by insurance companies writing policies in the state.
While the Insurance Commissioner rejected the 18.7% increase, it may just be a postponement of rising premiums. The Insurance Commissioner did schedule a July hearing to consider the rate increase and let industry experts present more evidence as to why the rate increase is necessary.
The N.C. Rate Bureau, which represents the insurance industry in North Carolina, had requested a statewide increase that averaged 18.7% in November 2017. Certain counties, including Wake and Durham, were looking at a 21.9% increase. In Western North Carolina, rates were actually set to decrease by 7.1%. All of that is now on hold until the July hearing.
In a recent statement, Insurance Commissioner Mike Causey said, “We are not in agreement with the Rate Bureau’s proposed increases. After hearing and reading the more than 9,000 comments from residents across the state and studying the figures in the filing, it is now necessary to hold a hearing to reach a resolution that will make the most financial sense for our residents and insurance companies.”
The rate increase request from N.C. Rate Bureau was supposed to take effect on July 1, 2018 but will now be delayed until after the hearing which is scheduled for July 23. It is possible that the commission will not issue a ruling until October which means North Carolina residents have a few months before they have to worry about increasing rates.
The rate increase request represents over 100 insurance companies that have written roughly 2.3 million homeowner insurance policies in the state. The annual premiums for these policies totals almost $2.1 billion and if the requested rate increase goes into effect it would generate about $480 million in additional revenue for insurance companies.
In support of the request, the N.C. Rate Bureau pointed out that there has not been a rate increase since 2012 and additional revenue via higher premiums is necessary to keep the insurance industry in North Carolina financially healthy.
It is possible that the N.C. Rate Bureau and the Department of Insurance will come to some type of settlement prior to the hearing. The settlement could include a smaller rates increase that the Insurance Commissioner feels is more appropriate for the market.
As an example, in 2012, the last time there was a rate increase, the industry requested a 17.7% rate increase but eventually settled for a 7.7% average increase.
How to Lower Your Rates
If the rate increase does eventually go through and you’re looking at higher premiums there are a few things you can do to keep your insurance cost under control:
- Shop Around: Insurance companies rate risk differently so premiums can vary dramatically between companies. Shop your coverage on a regular basis and make sure you’re comparing apples to apples when it comes to coverage levels and deductibles. At GetHomeInsuranceQuotes.com, we shop multiple rates all in one place so you can easily review and compare the best rate and coverage option for you and your family. Protect your home today and shop North Carolina Home Insurance Quotes Now!
- Raise Your Deductible: Boosting your deductible will always result in a lower premium but make sure you can easily afford the deductible in the event the you have to make a claim.
- Discounts: Insurance companies offer a variety of home and auto discounts and credits, make sure you are getting all the discounts you’re qualified to receive. Ask your insurance agent to do a discount review to make sure all available discounts are being applied to your policy. If you make upgrades to your home notify your agent to see if you qualify for new discounts.