North Carolina Receives 800 Comments on Fire, Dwelling Rates

The North Carolina Department of Insurance said that more than 800 people have submitted either written comments or public testimony on the industry’s request for a statewide increase averaging 20.9 percent in dwelling fire and extended coverage policies.

The comments come as the public comment period ended in anticipation of the Insurance Commissioner Wayne Goodwin’s decision on the rate filing.

The North Carolina Rate Bureau, which is not affiliated with the department, submitted the rate request on January 4 on behalf of insurers. The filing included dwelling fire policies that are offered to homeowners whose property doesn’t meet the requirements to qualify for a standard policy. Dwelling extended coverage policies are offered to policyholders to cover perils that extend beyond fire and lightening. That includes content coverage and coverage for physical damage to the property due to sprinkler leakage, wind, hail, vandalism and aircraft and vehicle damage. Typically, the number of policies represents a small part of the state’s total property exposure.

The industry bureau is actually calling for a decrease in fire policies. Based on a total state premium of $84 million, the bureau’s indicated rate change for the policies is minus 6.6. However, the decrease is more than offset by the proposed increase for extended coverage. Based on a total state premium of roughly $151 million, the bureau is calling for an average 110.3 percent increase. All together it equals the statewide average change to 20.9 percent.

The department said that it received 865 written comments and heard from 11 speakers at a public comment session held January 24.

The filing is now being reviewed by the department to determine whether the rate changes are warranted. If the department and rate bureau cannot reach an agreement on the filing, Goodwin will hold a public rate hearing on the matter to hear from both sides.

Topics North Carolina