Watauga homeowners insurance set to increase in June

North Carolina Insurance Commissioner Mike Causey has announced a settlement in the ongoing dispute between the North Carolina Department of Insurance and the state's insurance companies over a proposed homeowner's insurance rate increase.

Beginning on June 1, 2025, homeowners in Watauga County will see a 4.4% increase in their insurance rates and a 4.5% increase in 2026. These are some of the lowest increases across the state, with some counties seeing a 31.9% increase over the next two years.

"The insurance companies wanted to raise our homeowners' rates up to 99.4% in some areas and an average 42.2% statewide in a single year," Commissioner Causey said. "I fought for consumers and knocked them back to 7.5% increases over two years with a maximum of 35% in any territory. We consider this settlement a big win for both homeowners and North Carolina."

Under the new agreement, statewide homeowner insurance rates will increase by an average of 15% over the next two years. In addition, the agreement prohibits the N.C. Rate Bureau from undertaking an effort to increase rates again before June 1, 2027, ensuring stability in premiums for the next several years.

"North Carolina homeowners will save approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested. This also protects homeowners from future base rate increase requests until June 2027," said Commissioner Causey. "These rates are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims."

The Rate Bureau negotiates with the state on behalf of over 100 insurance companies that provide services in North Carolina. Any insurance companies writing homeowners' insurance or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau.

"This settlement will help insurers in North Carolina continue to provide customers with the peace of mind at the core of every homeowner's policy: that when disaster strikes, your carrier will be there to help. That doesn't mean the approved rate is adequate. It's a step in the right direction, and this industry always looks to work with regulators toward solutions. We thank Insurance Commissioner Mike Causey and Department of Insurance staff for helping bring a costly and time-consuming process to a close for the next two years," NC Rate Bureau Chief Operating Officer Jarred Chappell said.

On Jan. 3, 2024, the N.C. Rate Bureau submitted a rate filing to the N.C. Department of Insurance, and after months of negotiation, the Department of Insurance was able to negotiate a rate increase much lower than the initial request.

"I was shocked at the large request that was made," Commissioner Causey said at a press conference. "And I'm pleased to say the settlement reached was a fraction of what was asked for by the Rate Bureau."

Negotiations like these aim to keep insurance companies providing services in North Carolina. According to Insurance Business America, in 2023, Nationwide chose not to renew 10,525 homeowners' insurance policies in North Carolina, citing concerns related to hurricane risks.

According to a report by the Office of State Budget and Management, Helene damaged over 73,000 homes in Western North Carolina and counties affected by Helene will see some of the lowest rate increases across the state.

"I urge consumers, if you have questions about your homeowner's insurance or if you need help getting a claim settled, give us a call at the N.C. Department of Insurance," Commissioner Causey said.

For more information, visit www.ncdoi.gov/.

This story has been updated with a response from the N.C. Rate Bureau.