Homeowners' insurance rates going up
Triad to see 5.9% rate increase on homeowners' insurance in 2022
Winston-Salem Journal (NC)
Most homeowners in the Triad and Northwest North Carolina will see a 5.9% increase in their 2022 homeowners' insurance bill after the state insurance commissioner reached a settlement with the N.C. Rate Bureau.
Commissioner Mike Causey announced on Tuesday the details of the increase, which goes into effect June 1 for new and renewed policies.
For homeowners in Forsyth and Guilford counties, as well as in Greensboro and Winston-Salem, a 25% rate hike would have raised their annual costs by $170, or from an average of $637 to an average of $807.
Instead, the 5.9% increase represents a $38 increase to an average of $675.
The bureau is an independent group representing insurers writing policies in North Carolina. It typically asks for rate increases - some substantially higher in areas prone to damage from natural disasters, such as hurricanes, floods and winter storms.
The bureau requested in November 2020 an average 24.5% statewide increase.
The insurance commissioner, however, seldom agrees to a rate anywhere close to the bureau's full request.
"The data in the filing has not convinced me that such a drastic increase is necessary," Mike Causey said in December.
As part of the agreement announced Tuesday, the bureau will not seek another homeowners rate increase until 2024 at the earliest.
"I am happy to announce that North Carolina homeowners will save over $751 million in premium payments compared to what the (bureau) had requested," Causey said.
"I am also glad the Department of Insurance has avoided a lengthy administrative legal battle, which could have cost consumers time and money."
That average 5.9% price increase also applies for Alamance, Alleghany, Ashe, Davidson, Davie, Randolph, Rockingham, Stokes, Surry, Watauga and Yadkin counties. Wilkes County homeowners face a 9.9% increase.
For Alleghany, Ashe and Watauga, the average annual cost goes up by $34, or from $571 to $605.
For Davidson and Randolph, the average annual cost goes up $42, or from $711 to $753.
For Yadkin, the average annual cost goes up by $35, or from $594 to $629.
For Wilkes, the average annual cost goes up $61, or from $621 to $682.
The average annual cost increase for Alamance, Davie, Rockingham, Stokes and Surry counties weren't immediately available, but typically mirrors those of Forsyth and Guilford.