Homeowners’ rate settlement a win for N.C. consumers

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 settlement 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% on June 1, 2025, and 7.5% 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% in some areas and an average 42.2% statewide. I fought for consumers and knocked it back to two 7.5% increases over two years with a maximum of 35% 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 proud of the efforts the department ultimately took to save homeowners' money. That amount is approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested. Since I took office in 2017, 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 the most affordable in the nation, remain as low as possible.

Insurance regulation in North Carolina is a balancing act. These rates are sufficient to 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.Causey@ncdoi.gov.

Mike Causey has been the North Carolina commissioner of insurance since 2017.