NC mobile home owners learn insurance rate increases for next two years

The state's Insurance commissioner announced Tuesday reaching a settlement with the N.C. Rate Bureau that permits a statewide average increase of 11% for mobile home casualty policies over a two-year period.

Commissioner Mike Causey had rejected a 49.9% rate hike from the bureau.

Causey also approved an 8% statewide average rate increase for mobile home fire policies, also covering two years. He denied the bureau's request for an 82.9% increase.

The increases affect about 148,000 policyholders.

The Rate Bureau is an independent group representing insurers writing policies in North Carolina. It submitted its rate hike requests on April 8, 2024.

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 said a major factor in its sharp rate increase request is that North Carolina has experienced increased wind and hail losses stemming from damaging storms.

The commissioner — whether a Democrat or Republican — seldom agrees to a rate hike anywhere close to the bureau's full request, whether regionally or statewide.

Causey said the settlement will save N.C. mobile homeowners more than $10 million a year in premium payments compared with what the bureau sought.

"I am also glad the Department of Insurance and insurance companies have avoided a lengthy, expensive administrative legal battle," Causey said in a statement.

The first set of increases will take effect on new and renewed policies beginning on or after Sept. 1.

The second set of increases will take effect on Aug. 31, 2026. The agreement prevents the insurance companies from seeking an increase before Sept. 1, 2027.

Both mobile-home policies provide property and liability coverage and include flood coverage. The fire policy "provides coverage for a broader range of perils."