North Carolina Commissioner Lands on 8% Rate Increase for Dwelling Policies

June 10, 2024

North Carolina Insurance Commissioner Mike Causey has settled on an 8% average rate increase for dwelling insurance policies, starting Nov. 1.

The North Carolina Rate Bureau, basing its request on data from property insurers, last summer had urged an average 50.6% increase for DP policies, which cover rental and other investment properties.

“I am happy that we were able to save North Carolina consumers more than $151.7 million per year in this rate case over what the insurance companies requested,” Commissioner Causey said. “I’m also glad that we were able to avert a potentially lengthy and costly hearing on this case.”

Department actuaries had advised for the 8% settlement. A hearing set for July 22 has now been canceled.

For years, the Rate Bureau has recommended large, double-digit increases on most types of policies. But the commissioner usually negotiates with the bureau and lands on a much smaller increase.

The bureau recently called for an average overall 42% hike for homeowners‘ insurance; an 83% increase for mobile home-fire policies; and an average 50% jump in mobile home-casualty policies. Causey has rejected all of those and has scheduled hearings for later this year and early next.

North Carolina is one of the few states in which a rate bureau files for rate changes for the industry. In most areas, insurance carriers file for rate on their own policies.

Topics Trends Pricing Trends North Carolina

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