Substantial rate increase possible for North Carolina homeowners

While the increase will affect homeowners, Martin County renters could also see an eventual increase in monthly rental fees.

North Carolina Insurance Commissioner Mike Causey announced Friday, Jan. 5, the North Carolina Rate Bureau filed a homeowners insurance rate increase request with the North Carolina Department of Insurance on Wednesday, asking for an average statewide increase in homeowners' insurance rates of 42.2 percent. The bureau also requested the rates to become effective Aug. 1.

If the commission approves the increase, Martin County homeowners could see a 57.8 percent increase in their annual homeowners insurance premiums. Residents would be paying the third highest insurance rates in the state following coastal beach areas.

Real estate agents and insurance brokers throughout the county are concerned.

Roanoke Realty Team Broker Paul Roberson questioned the thinking behind such a large increase in a Tier 1 county with a large percentage of rental units. Of the counties 11,082 dwellings, 36 percent are rental units.

"The proposed 57.8 percent increase, if passed, will greatly affect home affordability in a Tier 1 county like Martin. It's very troubling. I am hopeful that the N.C. Rate Bureau will be able to negotiate a modest increase," said Roberson. "Hopefully, citizens across the state will reach out to the N.C. Insurance Commissioner and voice opposition to such a steep increase."

While homeowners and renters will be affected, some beach communities and Eastern Coastal areas are facing increases from 71.4 percent to as high as 99.4 percent, essentially increasing weekly and monthly beach rentals for vacationers locally and afar.

"The foregoing changes were calculated based on rates currently in force and reflect consideration duly given to data for the experience set forth," according to Rate Bureau General Manger Joanna Biliouris.

The bureau offered over 2,000 pages of data to support the requested increases.

The bureau represents companies that write insurance policies in the state and is a separate entity from the North Carolina Department of Insurance. Before a requested rate increase can be approved, public comment sessions need to be held enabling the public to voice their concerns.

The recent rate filing follows the homeowners' insurance rate filing that the Department of Insurance received from the North Carolina Rate Bureau in November 2020. At that time the Rate Bureau requested an overall average increase of 24.5 percent. That filing resulted in a settlement between Commissioner Causey and the Rate Bureau for an overall average 7.9 percent increase.

According to a USA Today study, U.S. homeowners pay between $1,117 to $2,950 per year for home insurance. The average is based on homes ranging in prices from $200,000 to $750,000. Location plays the major role in figuring insurance costs.

Factors that determine homeowners insurance costs include location, replacement cost of the home, deductible amounts, claims history and the dwellings age. However, many factors affect how much one pays for homeowners insurance, some of which can be altered to help reduce costs depending on coverage and premium.

The public is encouraged to comment on the upcoming rate increase during the public comment period. The forum will be held at the North Carolina Department of Insurance's Jim Long hearing room from 10 a.m. until 4:30 p.m. on Monday, Jan. 22. The purpose of the meeting is to gather citizen comments and input regarding the increase.

For those unable to attend, there will be a virtual presentation simultaneously with the in-person meeting. For more information, go to — https://bit.ly/3RTP9aX

Emailed public comments should be sent by Feb. 2 to: [email protected]. Emailed and written public comments must be received by Kimberly W. Pearce, Paralegal III, by Feb. 2, addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201 or emailed to- [email protected].

All public comments will be shared with the North Carolina Rate Bureau. If Department of Insurance officials do not agree with the requested rates, the rates will either be denied or negotiated with the North Carolina Rate Bureau. If a settlement cannot be reached within 50 days, Commissioner Causey will call for a hearing.

North Carolina Rate Bureau (NCRB) is a non-profit, unincorporated rating bureau created by the General Assembly of North Carolina under the provisions of Article 36 of Chapter 58 of the General Statutes of North Carolina on September 1, 1977.