North Carolina Home Insurance to Increase by 5.5 Percent on the Coast
Wrightsville Beach, NC – Insurance Commissioner Mike Causey was happy with this years result, saying in a press release, “I have negotiated a rate that will have minimal impact on the coast yet keep the state’s insurance companies financially sound.”
The legal dispute between the N.C. Rate Bureau (NCRB), which represents insurance companies in North Carolina, and the N.C. insurance department has come to an end with a statewide average increase for homeowners insurance coming in at 4.8 percent.
This is significantly lower than the 18.7 percent that was originally floated back in November. The rate hikes are set to go into effect on October 1st according to a press release from the N.C. Department of Insurance.
Rates hikes will vary across the state depending on location but will be capped at 5.5 percent. North Carolina coastal homeowners will be hit with the top of the range 5.5 percent increase but this is dramatically lower than the 25 percent increase for coastal homes that was proposed by the NCRB when talks first began. Some western counties may see a decrease of up to 9.4 percent.
According to a spokesperson with the N.C. Department of Insurance, a homeowner with a $200,000 insurance policy in the Wilmington area and a $1,000 deductible would see their premium go up roughly $101 a year.
Statistics from the N.C. Department of Insurance show that the average annual premium in the Wilmington area is currently $1,846 but these numbers can vary dramatically depending on the property being insured and its location.
As the 4.8 percent rate hike takes effect, the average premium will jump up to $1,947, however, if the NCRB had gotten the rate increase they requested, the average premium in N.C. would have been a whopping $2,306.
North Carolina last saw a rate increase in 2012, back then the NCRB settled for an average increase of 7 percent across the state, after asking for much larger increase.
Insurance Commissioner Mike Causey was happy with this years result, saying in a press release, “I have negotiated a rate that will have minimal impact on the coast yet keep the state’s insurance companies financially sound.”
The agreement reached also covered insurance policies for condominiums and renters, capping premium increases at 12 percent. This agreement will “save consumers approximately $293 million in the first year alone, compared to the NCRB’s proposed increase,” insurance officials said in a press release.
Tips to Lower Your Premium
While rates will definitely be headed up in October, here are a few tips to help you keep your premium affordable:
Shop Your Coverage: This is the best way to lower your premium. Rate hikes are not required by the state so some insurance companies may not raise rates. Shop around for the best deal but make sure you are comparing apples to apple when it comes to coverage levels and deductibles. Shop your North Carolina Homeowners Insurance Now!
Upgrade Your Home: This is especially true for homeowners on the coast and other high-risk areas. Storm shutters, wind resistant roofing materials and even a fire suppression system will all result in major discounts on your premium. Let your agent know about any upgrades you make to your home.
Raise Your Deductible: Raising your deductible will always lower your premium but make sure you choose a deductible you can easily afford in the event you have to make a claim on your policy.
Bundle it Up: Purchasing your home, auto, life and any other necessary insurance products from the same company will almost always result in a discount. Let us help you review the best coverage and competitive North Carolina home insurance rates available, then we can work on bundling your home auto for additional savings.