North Carolina Insurers Want 19.6% Rate Hike for Dwelling Policies

December 2, 2016

The North Carolina Rate Bureau (NCRB) has requested a 19.6 percent rate increase on all dwelling insurance policies, according to a statement from the North Carolina Department of Insurance.

NCDOI announced Dec. 1 it is reviewing NCRB’s Nov. 30 rate increase filing. The North Carolina Rate Bureau, which is not part of the Department of Insurance and represents all companies writing property insurance in the state, requested a statewide average rate increase of +19.6 percent, varying by territory, with a requested effective date of July 1, 2017.

This filing includes a requested decrease of -16.6 percent for fire policies and an increase of +37.3 percent for extended coverage (wind) policies, for a total statewide average increase of +19.6 percent. According to the rate filing information, there have been no previous dwelling insurance rate filings in the last five years.

Dwelling insurance policies are not homeowners insurance policies; dwelling policies are offered to non-owner occupied residences including rental properties, investment properties and other properties that are not occupied full-time by the property owner.

NCRB has also requested revisions to the current geographic rating territories. The proposed territory revisions are the same territory definitions applicable to homeowners’ policies that were approved in 2015.

NCDOI said the filing will be reviewed by Department of Insurance experts to determine what, if any, rate adjustments are warranted. If NCDOI and the NCRB do not initially agree on the proposed rate changes, a public hearing will be called in which both parties would present their cases for or against rate adjustments.

NCDOI said it will not rule on this filing until 2017.

A public comment session will be held on Tuesday, Dec. 20, 2016, 10:30 a.m. to 4 p.m. in the Jim Long Hearing Room of the Dobbs Building, 430 N. Salisbury St., Raleigh.

Written public comments will be accepted from Dec. 2 through Dec. 30, 2016. Written comments should be mailed to: NCDOI, Attn: Bob Mack, Property & Casualty Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; or emailed to 2016DwellingInsurance@ncdoi.gov.

The filing is available for public review on the NCDOI website and the SERFF Filing Access (https://filingaccess.serff.com/sfa/home/NC). Enter the SERFF Tracking Number NCRI-130822384.

Topics Carriers North Carolina Pricing Trends

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