The North Carolina Department of Insurance and the North Carolina Rate Bureau (NCRB) have reached a settlement for an average 4% increase on a proposal to increase dwelling insurance rates.
A hearing on the proposal scheduled for Jan. 13 has been canceled.
The NCRB, which is not a part of the NCDOI but represents companies that write insurance policies in the state, had requested a statewide average rate increase of 19.2%, varying by territory.
According to a statement from NCDOI, Insurance Commissioner Mike Causey rejected that increase, saying that the proposed rate hike was excessive and instead negotiated a 15-percentage point reduction of the proposed increase to an overall statewide rate of 4%.
The NCRB had requested a 4.6% increase in fire coverage and a 24.3% increase in extended (wind) coverage.
The settlement, instead, resulted in a 0% increase for fire coverage and a statewide average 5.3% increase for extended (wind) coverage, an almost 20-percentage point reduction from the proposed increase, NCDOI said.
The new rates apply to all new and renewal polices effective on or after July 1.
The settlement includes provisions for credits for dwelling owners who install fortified roofs. Fortified roofs are built to a higher standard and designed to better withstand high winds that come from storms. Such credits could reduce insurance premiums by an average 7% in some territories.
Dwelling insurance policies are not homeowners’ insurance policies. Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner.
Source: North Carolina Department of Insurance
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