Homeowners insurance rates to increase over next two years

[email protected]The Highlander

Property owners in Highlands, Cashiers, and surrounding communities will see an increase to their homeowner’s insurance rates over the next two years according to information made public by the NC Department of Insurance on Thursday.

NC Insurance Commissioner Mike Causey announced that the N.C. Department of Insurance has ended its legal dispute with insurance companies about their proposed homeowners’ insurance rate increase filed in January 2024.

The proposed rate increase presented by the insurance companies for Macon, Jackson, Clay and Cherokee counties was 8.2 percent over the next two years. Following the settlement with the state, the increase for the aforementioned counties will be 1.3 percent in 2025 and 1.2 percent in 2026.

The N.C. Rate Bureau originally requested a statewide average 42.2% increase last year, with proposed increases of up to 99.4% in some areas of the state.

“The insurance companies wanted to raise our homeowners’ rates up to 99.4% in some areas and an average 42.2% statewide in a single year,” Causey said. “I fought for consumers and knocked them back to 7.5% increases over two years with a maximum of 35% in any territory. We consider this settlement a big win for both homeowners and North Carolina.”

Under the agreement signed by Causey and the NC Rate Bureau, the average statewide base rate will increase by 7.5% on June 1, 2025, and 7.5% on June 1, 2026. The Rate Bureau is not a part of the Department of Insurance and rep- resents homeowners’ insurance companies in North Carolina.

In addition, the agreement prohibits the Rate Bureau from undertaking an effort to increase rates again before June 1, 2027.

“North Carolina homeowners will save approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested. This also protects homeowners from future base rate increase requests until June 2027,” said Causey. “These rates are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims.”