Community roundtable held in Harkers Island to discuss potential homeowner's insurance rates spike

HARKERS ISLAND — County residents flooded the Core Sound Waterfowl Museum and Heritage Center in Harkers Island on Wednesday to express their concerns amid the North Carolina Rate Bureau's (NCRB) recent proposal that could potentially double the cost of homeowners insurance.

"If they're going to double that, now we're talking about your homeowner's insurance is more than some people's taxes," said Harkers Island resident Robert Buckley. "So, you may not be getting taxed out of the community, but you may be getting insured out of a community. Because can people afford the insurance?"

In the first week of the New Year, the NCRB submitted a request with the North Carolina Department of Insurance (NCODI) for an average statewide increase of 42.2%, with Carteret County facing as high as 99.4%.

The NCRB is separate from the NC Department of Insurance (NCDOI) and represents companies that write insurance policies in the state.

Considering tropical storms frequently hit Carteret County due to its coastal location, homeowners' insurance is usually not included in flood or windstorm and hail insurance policies, which are also advised to be utilized by most of the county's residents.

Local business owners attended the meeting in addition to residents since the proposed rate increases may have an impact on how their establishment is operated.

An Emerald Isle resident who wished to remain anonymous also voiced concerns about the properties she leases out on VRBO and Airbnb, and how future insurance rates could negatively impact not just her business but all businesses.

"The big problem is, with this amount going up, we have to take it down to our guests," she said. "You have to pass it down because I can't afford it myself. Why you ever be in business? You get all these people in the house, they come, and they enjoy it, but then you have to pay more than what you bring in to pay for insurance. This is not going to work. What happens is, if I have to raise it, then our area looks like it's too expensive, so people are not coming down."

Along with NC Insurance Commissioner, Mike Causey, representatives from the NC Department of Insurance, NC Department of Public Safety, FEMA, NC Office of Recovery & Resilience, the National Flood Insurance Program and other specialists in property insurance were in attendance to answer questions at the community roundtable program that was hosted by the Down East resilience network on Wednesday.

Insurance professionals focused the majority of their conversations on storm resilience on Wednesday. They informed the public on what they can do before, during, and after storms as well as the various programs that can help residents who have been affected by wind and water damage.

Even though most of the rhetoric of the day focused on resiliency efforts, and not the potential for increased rates, Causey did mention the elephant in the room.

"I only have authority under State law to say two words: yes or no", said Causey. "I can tell you, I've always said no to every rate request that has come before me since I've been commissioner, that's been since 2017."

In November 2020, NCDOI received a request from NCRB for a 24.5% increase in homeowners' insurance rates, which eventually resulted in a settlement between Causey and NCRB for an overall average rate increase of 7.9%.

A public comment forum will be held on Jan. 22 from 10 a.m. to 4:30 p.m. at the NCDOI's Jim Long Hearing Room in the Albemarle Building in Raleigh and a virtual comment forum will be held simultaneously with the in-person forum.