The North Carolina Rate Bureau has recommended a statewide average increase of 42.6% over the next two years for dwelling property policies.
The rate hikes would be an average of 19.6% for April 2023 and 19.2% for 2024, the bureau’s filing shows.
The size of the rate escalation is unlikely to stand. State Insurance Commissioner Mike Causey has negotiated down other significant rate requests in the last two years, including a 24.5% average increase the rate bureau recommended for homeowner policies and a 24.9% proposed spike in mobile home rates. Those ended up at 7.9% and 11.3%.
The rate bureau actuaries said the latest dwelling property filing, which includes fire and extended coverage on rental properties, investment properties and other non-owner occupied residences, was based on trends and losses seen from 2016 through 2020. An increase in reinsurance costs played a significant factor, said a report from Milliman actuaries, included in the filing.
The Department of Insurance will accept comments on the proposed rates. They should be sent by Sept. 19 to NCDOI.2022DwellingandFire@ncdoi.gov. If a negotiated settlement cannot be reached, a public hearing will be held, the department said.
Topics Pricing Trends North Carolina
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