The North Carolina Rate Bureau is looking to raise rates an average of 68.3% statewide on dwelling insurance policies over the next two years. That’s according to a press release issued Monday by the North Carolina Department of Insurance (NCDOI).
The NC Rate Bureau represents the insurance companies in the state and is not a part of the NCDOI.
The NC Rate Bureau filed the proposed increase with NCDOI on Oct. 30.
Dwelling insurance is different from homeowners’ insurance. Dwelling policies are primarily offered to non-owner-occupied residences of no more than four units, including rental properties, vacation homes, investment properties, and other properties that are not the property owner’s primary residence.
The first proposed average statewide increase of 28.5% would take effect on July 1, 2026, with the second increase of 30.9% would take effect on July 1, 2027.
The proposed changes are averages and vary by territory.
In an emailed statement to Carolina Journal, the NC Rate Bureau said it reviewed data on tens of thousands of actual insurance claims from 2019 through 2023 to determine the premiums needed to cover risks and build the request. They stated that they requested a substantial increase in the dwelling rate because claim costs have risen substantially, noting climate change as one of the culprits.
“The 27 separate billion-dollar disasters that hit the United States in 2024 would have been an all-time record, had it not been for the 28 billion-dollar disasters that hit in 2023,” the Rate Bureau stated.
They also noted that inflation in the construction industry has far outpaced overall inflation in recent years, and some of the fastest-growing areas in North Carolina are coastal areas where storm damage is more common.
“Simply put, severe storm damage is becoming more common, it’s impacting more homes, and it’s more expensive to rebuild afterwards,” they said.
The last dwelling rate hike request made by the NC Rate Bureau was in July 2023, when it requested an average statewide increase of 50.6%. NCDOI reached an agreement with the NC Rate Bureau in May 2024 to raise rates by an average of 8%.
People who would like to comment can either email their comments to [email protected] or mail them to Kimberly W. Pearce, Paralegal III, 1201 Mail Service Center, Raleigh, NC 27699-1201.
All emailed and written comments must be received by Nov. 19.
If NCDOI doesn’t agree with the requested rates, they will try to negotiate with the NC Rate Bureau. If a settlement cannot be reached within 50 days, a hearing will be held.
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