The North Carolina Department of Insurance and the North Carolina Rate Bureau have settled a legal dispute over a proposed premium increase for homeowners insurance rates, according to a statement from NCDOI.
NCDOI has also negotiated a settlement with the NCRB on mobile home insurance rates.
Homeowners rates will see an overall statewide increase of 4%. The increase will take effect on new and renewed policies beginning on or after May 1, 2020.
NCRB, which represents companies writing property insurance in North Carolina and is not a part of NCDOI, proposed a 17.4% statewide overall increase in homeowners’ insurance rates in 2018, but NCDOI said after studying the data, a settlement was negotiated for the overall statewide increase of 4%.
Because a settlement has been reached, the hearing scheduled for Oct. 2 is canceled.
The 4% increase will vary according to territory, with a cap of 10% statewide instead of the 30% cap in some coastal territories initially requested by the NCRB. The highest negotiated rate increase is 9.8% in some coastal territories. The western-most territory in the state will see an average 0.1% decrease.
Mobile home insurance
In February, the NCRB requested an overall statewide average increase of 19% for MH-C (Casualty) policies and an overall statewide average increase of 19.9% for MH-F (Fire) policies. Both MH-C and MH-F programs provide property and liability coverage. The agreement reached between the Department of Insurance and the NCRB provides for an overall average increase of 4.3% for MH-C policies and an average overall statewide rate increase of 6.6% for MH-F policies.
Rates will vary according to territory.
Both mobile home insurance changes are effective for new and renewed policies written on or after May 1. 2020.
Source: North Carolina Department of Insurance
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