Insurance companies say a major hurricane could lead them to pass billions of dollars in charges to homeowners across North Carolina because a state-created coastal insurance plan is underfunded.
The News & Observer of Raleigh reports that North Carolina’s Beach Plan could handle about $2.5 billion in losses, but a major storm could lead to billions more in damages.
Bob Herlong, vice president of the Property Casualty Insurers Association of America, said additional losses would be assessed to insurance companies, leading smaller ones to bankruptcy and burdening others.
Herlong said that even if it took years, companies would seek rate increases — perhaps statewide — to recoup those losses.
Industry officials are meeting to discuss coastal insurance at a seminar at Appalachian State University which started on July 21.
___
Information from: The News & Observer,
http://www.newsobserver.com
Topics Carriers Windstorm North Carolina
Was this article valuable?
Here are more articles you may enjoy.
State Farm to Increase Claims Workforce by 3,000 
Here Are Some AI Doomsday Scenarios Researchers Say Could Put Humanity at Risk 
Florida’s Commercial Clearinghouse Plan Hits a Snag, With OIR and Board Concerns 
FEMA’s New Flood Maps Means More Homes Require Flood Insurance: Cotality 
