North Carolina insurance commissioner rejects 42.2% hike in homeowners insurance. Hearing on rates set for October

The N.C. Rate Bureau's 42.2% proposed hike in homeowners' insurance rates was rejected Tuesday by Mike Causey, the state Insurance commissioner.

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.

This time, Causey called the bureau's overall proposed increase "excessive and unfairly discriminatory."

"Homeowners were shocked with the high amount requested by the insurance companies, and so was I," he said.

The bureau represents companies that write insurance policies in the state and is a separate entity from the insurance department. It typically asks for rate increases — some substantially higher in areas prone to damage from natural disasters, such as hurricanes, floods and winter storms.

Causey has set a hearing for 10 a.m. Oct. 7 to address the bureau's request that included an Aug. 1 effective date.

The rates typically are set by region, this time ranging from 4.3% in some of the mountain counties to 99.4% in some of the beach areas.

Triad and northwest N.C. homeowners would face between a 20.5% and 41.3% jump in their residential insurance rates if the bureau's latest increase request gains regulatory approval.

"I haven't seen the evidence to justify such a drastic rate increase on North Carolina consumers," Causey said in a statement.

"The Department of Insurance has received more than 24,000 emailed comments on this proposal, with hundreds more policyholders commenting by mail. Scores more consumers spoke during a public comment forum.

"North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review."

36.6% increase in Triad

The bureau wants a 36.6% rate hike for homeowners in Winston-Salem and Greensboro, as well as in Alamance, Davie, Forsyth, Guilford, Rockingham, Stokes and Surry counties.

It is by far the largest rate increase range sought by the bureau for the urban parts of the Triad since at least 2009.

The remaining requested increases are: 41.3% for Wilkes County; 25.2% for Davidson and Randolph counties; 22.3% for Yadkin County; and 20.5% for Alleghany, Ashe and Watauga counties.

It's the seventh rate increase requested by the bureau since 2009.

The rate hikes sought for the Triad were: 13% in 2009; 17.7% in 2012; between 16.2% and 20.6% in 2014; 17% in 2017; 20% in 2018; and 24.5% in 2020.

The approved increases for the Triad were: 3% in 2009; 7% in 2012; 0.1% in 2014; 5.5% in 2017; 3.5% in 2018; and 5.9% in 2020.

Even if the bureau will secure a small percentage of its overall request, it has gotten the attention — and opposition — of the N.C. Realtors advocacy group.

The association has said it is "raising the alarm to consumers to ensure this significant rate hike is known before the state-required public response period ends in January."

"The Rate Bureau's extreme rate hike request of 42% average statewide is a gut-punch to homeowners and homebuyers when they're already facing challenges affording homes amid record high mortgage rates and property tax increases," association president Tony Harrington said.

"The NCR calls on the Insurance commissioner to reject the insurance companies' unreasonable request — and to take a stand on behalf of his constituents across the state."

Recent bureau rate hike requests have become fodder for primary and general election campaigns for insurance commissioners.

Causey, a Republican in his second term as commissioner, has faced criticism in particular from Democratic primary candidate David Wheeler for his willingness to agree to higher rate increases than his predecessors.

Wheeler also cited automobile, condominium and renter, dwelling and mobile home rate hikes approved by Causey.

"Causey has approved 18 rate hikes without taking any of them to a public hearing for input from policyholders, the public and consumer advocacy groups, or (go) to court to stop them," Wheeler said.