Homeowners’ rate settlement, a consumer win

We have come to an agreement with North Carolina homeowners’ insurance companies regarding a rate case that’s been going on for more than a year.

I recently signed a settle-

ment with the North Carolina Rate Bureau which is not a part of the Department of Insurance and represents homeowners’ insurance companies conducting business in North Carolina. The agreement provides for an average statewide base rate of increase of 7.5 percent on June 1, 2025 and 7.5 percent on June 1, 2026.

In addition, this agreement prohibits the insurance companies from undertaking an

effort to increase rates again before June 1, 2027.

The insurance companies wanted to raise our homeowners’ rates up to 99.4 percent in some areas and an average 42.2 percent statewide. I fought for consumers and knocked it back to two 7.5 percent increases over two years with a maximum of 35 percent in any territory. After receiving more than 24,000 comments, I said “No!” to that proposal in February 2024. Policyholders were shocked at the proposal and so was I.When I deny a Rate Bureau request such as this I am required by law to set a public hearing on the dispute. 

I did that and the hearing began on Oct. 7, 2024.As the hearing went into the new year the Rate Bureau came to me and asked if we could work out a settlement. Fortunately we were able to do so.While the settlement was a long process, I am proudof the efforts the departmentultimately took to save home-owners’ money. That amountis approximately $777 million in insurance premiums over the next two years compared to what the insurance companiesrequested. Since I took office in2017, I have said “No” to every proposed increase sent by the Rate Bureau.As your Commissioner I will always work hard to ensure our rates which are some of themost affordable in the nation, remain as low as possible.Insurance regulation in North Carolina is a balancingact. These rates are sufficientto make sure that insurance companies, who have paid out large sums due to increases in claims payments have adequate funds on hand to pay future claims. 

Looking at the insurance climate and choices in other states, North Carolina is fortunate to have a healthy insurance market giving consumers more choices in some other states.If you need help with a claim or have a question about your homeowners’ insurance we’re here to help. You can contact us by visiting www.ncdoi.gov, by calling 855-408-1212 or by emailing me directly at Mike. [email protected].