RALEIGH — North Carolina Insurance Commissioner Mike Causey negotiated a lower dwelling rate hike after a much larger request from insurers.
Last August, the N.C. Rate Bureau requested a 50.6% rate increase for dwelling policies covering rental and investment properties. Causey rejected that rate in February.
Causey announced a settlement had been reached with insurance companies over the proposed dwelling rate increase, limiting the approved rate increase to an average of 8% statewide. Insurers originally requested a 50.6% increase.
“I am happy that we were able to save North Carolina consumers more than $151.7 million per year in this rate case over what the insurance companies requested,” Causey said in a press release.
“I’m also glad that we were able to avert a potentially lengthy and costly hearing on this case. Our top-notch legal, actuarial and property and casualty experts at the Department worked diligently to help protect the consumers’ pocketbooks by limiting this increase to 8%.”
The new 8% average rate increase for dwelling policies will take effect on Nov. 1 across the state, with variations by territory.
Dwelling policies differ from standard homeowners’ insurance in covering non-owner-occupied rental or investment properties, typically with four units or less.
The settlement cancels a hearing that was scheduled for July 22 over the rate dispute.
According to Causey, his office received more than 25,000 emails, letters and calls from the public about the N.C. Rate Bureau’s initial proposal.
