Causey rejects homeowner rate increase

Martin County homeowners concerned about a substantial homeowner insurance rate hike received a reprieve last week after N.C. Insurance Commissioner Mike Causey denied the rate hike requested by the North Carolina Rate Bureau (NCRB).

Causey subsequently set a hearing for Oct. 7.

In January, the NCRB filed a homeowners insurance rate increase request with the North Carolina Department of Insurance. The Rate Bureau asked for an average statewide increase in homeowners' insurance rates of 42.2 percent. The bureau also requested the rates to become effective Aug. 1.

"Homeowners were shocked with the high amount requested by the insurance companies, and so was I," Causey said.

The proposed county increase would have been among the highest rates in the state. While the increase would have affected homeowners, Martin County renters could also have experienced an eventual increase in monthly rental fees.

While statewide average for the increase would have been 42.2 percent, Martin County homeowners were slated to pay approximately 57.8 percent estimated increase. Residents would have been paying the third highest rate in the state. Beach property owners could have experienced rate increases as high as 98 percent.

Causey rejected the proposed 42.2 percent average increase to homeowners, calling the rate hike "excessive and unfairly discriminatory."

"I haven't seen the evidence to justify such a drastic rate increase on North Carolina consumers," Causey explained.

The department held a public hearing in January addressing the proposed increase.

"The Department of Insurance has received more than 24,000 emailed comments on this proposal, with hundreds more policyholders commenting by mail. Scores more consumers spoke during a public comment forum. North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review," noted Causey.

The recent rate filing follows the homeowners' insurance rate filing that the Department of Insurance received from the NCRB in November 2020. At that time the Rate Bureau requested an overall average increase of 24.5 percent. That filing resulted in a settlement between Causey and the Rate Bureau for an overall average 7.9 percent increase.

According to a USA Today study, U.S. homeowners pay between $1,117 to $2,950 per year for home insurance. The average is based on homes ranging in prices from $200,000 to $750,000. Location plays the major role in figuring insurance costs.

Factors that determine homeowners insurance costs include location, replacement cost of the home, deductible amounts, claims history and the age of the home. However, many factors affect how much you pay for homeowners insurance, some of which can be altered to help reduce costs depending on coverage and premium.

The NCRB is a non-profit, unincorporated rating bureau created by the General Assembly of North Carolina under the provisions of Article 36 of Chapter 58 of the General Statutes of North Carolina on September 1, 1977.

Causey has set the Oct. 7 hearing to begin at 10 a.m. State law gives the Insurance Commissioner 45 days to issue an order once the hearing concludes.