Simple steps can help save money on your homeowners’ insurance

North Carolina's homeowners have the lowest average rates among all Southeastern states. Compared to other states, North Carolina has a strong and healthy insurance market.

However, free market reforms allowing insurance companies more flexibility in marketing products is something I support as Commissioner of Insurance. More insurance companies offering homeowners' insurance is what we need. More competition means more choices and better rates for consumers.

It is up to the General Assembly to make any changes to the N.C. Rate Bureau as they created it in 1977.

Earlier this year I said "No!" to the average 42.2% statewide average homeowners' insurance rate increase proposed by the insurance companies in January.

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

Although the 42.2% increase is the average, the proposed rates put forth by the insurance companies ranged up to 99.4% in some beach areas.

The proposal was filed by the North Carolina Rate Bureau. The Rate Bureau represents companies that write insurance policies in the state. It is not part of the Department of Insurance and is not a state agency. It is a board of 14 members represented by the insurance companies that write automobile or dwelling policies in North Carolina. Insurance companies writing homeowners' insurance or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau.

In my opposition to the proposed increases, I deemed these proposed rates "excessive and unfairly discriminatory." That's why I said no to the proposal and set a hearing date for Oct. 7.

During the past 20 years, there have been eight dwelling and fire rate filings. Only one went to a hearing. Settling and not going to court saves consumers and taxpayers money. Hearings are the exception when negotiations fail.

State law requires a public comment period on any request. The Department of Insurance publicizes all rate requests from the NCRB and encourages comments from the public. In addition, we hold public hearings for comments and normally extend the comment period two weeks.

This is the fourth time since I took office as your Insurance Commissioner that the insurance companies have proposed a homeowners' rate increase. And this is the fourth time that I've said "No!" I've also said no to every proposed rate hike on automobile insurance, homeowners' insurance and mobile home insurance and have negotiated settlements as low as possible for consumers.

As your Insurance Commissioner, I have to follow state law on the process required by the General Assembly in 1977.

I have to verify that insurance rates are adequate for insurance companies to pay claims and remain financially sound. Also, I must make sure those rates are not "excessive" or "unfairly discriminatory." By state law, I have to make sure that we have a robust insurance market so North Carolinians can have choices in their insurance policies. Without this competition, consumers will suffer.

Here are some tips on what you can do to:

Look at bundling insurances for discounts and ask for other discounts; make sure you aren't paying for coverage you do not need.

Consider a higher deductible plan, which may reduce your premium.

Reduce your risk of having a claim through upgrades such as a new furnace or hot water heater.

You can also shop around periodically, but try not to switch carriers too often. Some insurance companies reward loyalty by offering discounts.

Speak to your insurance agent, about a customized plan for you. Your agent may be able to help you identify savings.

Review your policy thoroughly at each renewal. There can be changes that affect the premium, such as the value of the home.