North Carolina Hearing on Proposed 68.3% Increase in Dwelling Insurance Rates

The North Carolina Department of Insurance is gearing up for a crucial hearing to evaluate a proposed 68.3% hike in dwelling insurance rates statewide. Set for May 4, 2026, at 10 a.m. in Raleigh, this marks a pivotal moment following the North Carolina Rate Bureau's recent submission of these substantial rate adjustments. The changes aim to impact dwelling insurance policies, which focus primarily on fire and extended risks for non-owner-occupied residences like rentals and investment properties.

Regulatory Process and Compliance

Insurance Commissioner Mike Causey emphasized the importance of this hearing as a necessary step within the regulatory compliance framework to assess the Rate Bureau's proposal. This process plays a crucial role in balancing financial viability for both the carriers and residents across North Carolina. A settlement prior to the hearing could potentially avert the proceedings, otherwise, a ruling is mandated within 45 days post-hearing.

Potential Impact and Previous Adjustments

Significant rate increases are anticipated for numerous policyholders, varying by region, should the proposal be enacted. This comes on the heels of a previous major rate increase request by the Rate Bureau in July 2023, which initially sought a 50.6% rise, but was ultimately settled at an average increase of 8% effective November 1, 2024. Such ongoing adjustments underscore the dynamic nature of risk management and underwriting considerations within the industry.