North Carolina's Proposed Dwelling Insurance Rate Hike of 68.3%

In North Carolina, a proposed increase in dwelling insurance rates is currently under review. The N.C. Rate Bureau has submitted a request for an average hike of 68.3%, prompting Insurance Commissioner Mike Causey to schedule a public hearing. Slated for May 4 at the Department of Insurance in Raleigh, this hearing aims to evaluate the financial implications for consumers and insurers, while also allowing both parties to negotiate an agreement before the hearing.

State regulations mandate that the insurance commissioner must issue a decision within 45 days after the hearing concludes. If the Rate Bureau's proposal is rejected, it can appeal to the N.C. Court of Appeals, with further recourse available to the N.C. Supreme Court. The proposed changes involve adjustments in rates for fire and extended coverage, potentially resulting in significant double-digit premium increases affecting many policyholders across the state.

Notably, dwelling insurance covers non-owner-occupied properties, such as rental units and some investment properties, distinguishing it from homeowners insurance. The last major filing by the N.C. Rate Bureau involved a request for a 50.6% increase in 2023, which was ultimately settled at an 8% increase effective November 2024. This highlights the negotiation process in balancing regulatory compliance requirements with market demands, reflecting ongoing dynamics in the insurance industry's risk management and regulatory oversight.