Rouzer Urges NC Department of Insurance Commissioner to Reject Astronomical Increases in Homeowners' Insurance Rates

WASHINGTON, Jan. 27 -- Rep. David Rouzer, R-North Carolina, issued the following news release on Jan. 26, 2024:

Today, Congressman David Rouzer (NC-07) joined members of the North Carolina Congressional delegation in urging North Carolina Department of Insurance Commissioner Mike Causey to reject the North Carolina Rate Bureau's proposed statewide increase in homeowners' insurance rates.

"While it certainly costs more to rebuild homes damaged by storms because of rampant inflation resulting from President Biden's failed economic policies, arbitrary astronomical increases in insurance rates are out of bounds," said Congressman Rouzer. "Such increases would negatively impact everyone who owns a home and make homeownership impossible for many. I am sure Commissioner Causey will reject these high rate increases and work to reach the best outcome attainable under Bidenflation. Every citizen concerned about these proposed rate increases should register their opposition with the NC Department of Insurance."

The letter is being sent to Commissioner Causey in response to the NC Rate Bureau's proposed increase in homeowner insurance rates by an average of 42.2% statewide, with coastal counties potentially facing an increase of over 99%. In the letter, the Members outline how it is natural for insurance companies to raise their rates -- especially during a time of increased inflation -- however, a rate increase of such a large amount would be devastating for constituents. The Members also thank Commissioner Causey for his work in 2020 when the NC Rate Bureau asked for an average statewide increase of 24.5% and the North Carolina Department of Insurance settled on an increase of 7.9%.

"The proposed surge in homeowner insurance rates will crush Eastern North Carolinians, particularly those residing along the coast," said Congressman Greg Murphy, M.D. "Record inflation and historic interest rates have already skyrocketed the cost-of-living for folks across the country. Increasing rates dramatically will supercharge this crisis and make homeownership even more difficult to attain. I urge Commissioner Causey to exercise his authority to deny these rate hikes and work to establish a constructive path forward."

"North Carolinians are at their wits end - they've been saddled with crippling inflation and ballooning interest rates with seemingly no end in sight," said Congresswoman Virginia Foxx. "The last thing they need to bear the brunt of is a surge in home insurance costs that will only exacerbate the financial strain that sits upon their shoulders. Commissioner Causey should reject these proposed insurance hikes and lead the way in producing both viable and sensible solutions to address this."

"President Biden's failed policies have led to historic inflation and higher interest rates, making living expenses more costly for families in the Sandhills," said Congressman Richard Hudson. "Raising insurance rates will only make the situation worse. I urge NC Insurance Commissioner Causey to intervene, reject these proposed hikes, and work with stakeholders to find a better solution."

"Eastern North Carolinians are already grappling with rising costs and elevated interest rates. A potential surge in home insurance costs would only intensify these problems, putting homeownership, a cornerstone of the American dream, increasingly out of reach," said Congressman Don Davis. "To prevent insurance rate increases, I joined my colleagues in urging Commissioner Causey not to move forward and instead find workable solutions that support the financial well-being of all our communities."

"North Carolinians are already suffering from high inflation and interest rates. Excessively raising homeowner insurance rates would only increase the undue financial burdens on hard-working citizens," said Congressman Chuck Edwards. "While insurance companies can raise their rates within reason, the new proposal to increase statewide homeowners insurance rates by 40-100%, would only worsen the cost-of-living crisis constituents are already facing."

"As thousands of families across the state continue to struggle with rising housing prices, an extreme rate increase on homeowners' insurance would only place further financial burden on North Carolinians and make homeownership even more difficult to attain," said Congresswoman Valerie Foushee. "I join my colleagues in urging Commissioner Causey to step in and reject these excessive rate hikes that would devastate our local communities and residents."

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To: Mike Causey, Commissioner, NC Department of Insurance, 1201 Mail Service Center, Raleigh, NC 27699-1201

Dear Commissioner Causey:

We write this letter with great concern over the potential for increased rates on homeowners' insurance. As you are aware, the North Carolina Rate Bureau has asked for an increase in homeowners' insurance rates that would amount to an average increase of 42.2% statewide./1 Even more concerning, some coastal counties may see an increase of over 99%./2

Thousands of our constituents are still struggling with increased inflation, interest rates, and housing prices. An increase of this amount will only exacerbate this cost-of-living crisis and make homeownership more difficult to achieve. While we understand it is natural for insurance companies to raise their rates, a rate increase of such a large amount would be devastating for our constituents.

On November 9, 2020, the North Carolina Rate Bureau asked for an average statewide increase of 24.5%. Fortunately, thanks to your leadership, the North Carolina Department of Insurance settled on an increase of 7.9%./3 We appreciate your office's past engagement on this issue and are hopeful you will reject this request from the North Carolina Rate Bureau.

As your office continues to receive public comments on this issue, we appreciate you taking our views into consideration.

Sincerely,

Gregory F. Murphy, M.D., Member of Congress

Virginia Foxx, Member of Congress

Richard Hudson, Member of Congress

David Rouzer, Member of Congress

Don Davis, Member of Congress

Chuck Edwards, Member of Congress

Valerie P. Foushee, Member of Congress

Wiley Nickel, Member of Congress

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Footnotes:

1/ https://www.ncdoi.gov/news/press-releases/2024/01/05/insurance-companies-ask-422-rate-increase-homeownersinsurance

2/ https://www.ncdoi.gov/2024-territories-ncrb-proposed-rates/open

3/ https://www.ncdoi.gov/news/press-releases/2024/01/05/insurance-companies-ask-422-rate-increase-homeownersinsurance

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Original text here: https://rouzer.house.gov/news/documentsingle.aspx?DocumentID=1127