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Breaking: Proposed 42.2% Homeowners Insurance Rate Hike in North Carolina - What Real Estate Professionals Need to Know

In a significant development, the North Carolina Rate Bureau has requested an average statewide increase in homeowners’ insurance rates by a staggering 42.2%, effective August 1, 2024.

This proposal, if approved, could have a profound impact on homeowners across the state.


Background

This request follows a previous filing in November 2020, where a 24.5% increase was proposed, later negotiated down to 7.9%. The North Carolina Rate Bureau, representing insurance policy writers in the state, is distinct from the North Carolina Department of Insurance.



County-Specific Impact

The proposed increases vary significantly by county. For instance, coastal areas such as Brunswick and Carteret counties could face a whopping 99.4% increase, while more inland counties like Haywood County are looking at a more moderate 4.3% rise.


Area

NCRB PROPOSED INCREASE

Beach areas in Currituck, Dare and Hyde Counties

45.1%

Beach areas in Brunswick, Carteret, New Hanover, Onslow and Pender Counties

99.4%

Coastal areas in Currituck, Dare, Hyde and Pamlico Counties

33.9%

Eastern Coastal areas of Brunswick, Carteret, New Hanover, Onslow & Pender Counties. Eastern Coastal area zip codes: 28403, 28404, 28405, 28406, 28407, 28408, 28409, 28410, 28411, 28412, 28422, 28428, 28443, 28445, 28459, 28460, 28461, 28462, 28467, 28468, 28469, 28470, 28480, 28511, 28516, 28520, 28524, 28528, 28531, 28532, 28533, 28539, 28553, 28557, 28570, 28577, 28579, 28581, 28584, 28589

71.4%

Coastal areas in Beaufort, Camden, Chowan, Craven, Jones, Pasquotank, Perquimans, Tyrell & Washington Counties

25.6%

Western Coastal areas of Brunswick, Carteret, New Hanover, Onslow & Pender Counties. Western Coastal area zip codes: 28401, 28402, 28420, 28421, 28425, 28429, 28435, 28436, 28447, 28448, 28451, 28452, 28454, 28456, 28457, 28466, 28478, 28479, 28518, 28521, 28540, 28541, 28542, 28543, 28544, 28545, 28546, 28547, 28555, 28574, 28582

43.0%

Gates and Hertford Counties

30.4%

Bertie, Greene, Martin, Pitt, and Wayne Counties

57.8%

Duplin and Lenoir Counties

71.3%

Columbus County

63.1%

Edgecombe and Wilson Counties

57.8%

Cumberland and Sampson Counties

45.5%

Bladen and Robeson Counties

56.1%

Franklin, Halifax, Johnston, Nash, and Northampton Counties

40.8%

Harnett, Hoke, and Scotland Counties

39.9%

Granville, Person, Vance, and Warren Counties

39.3%

Cities of Durham and Raleigh. Durham and Wake Counties

39.8%

Chatham and Orange Counties

25.1%

Lee and Moore Counties

28.4%

Anson, Montgomery, and Richmond Counties

26.1%

Cities of Greensboro and Winston-Salem. Alamance, Davie, Caswell, Forsyth, Guilford, Rockingham, Stokes, and Surry Counties

36.6%

Cabarrus, Davidson, Randolph and Rowan Counties

25.1%

Yadkin County

22.3%

City of Charlotte. Alexander, Iredell, Mecklenburg, Stanly, Wilkes and Union Counties

41.3%

Cleveland, Gaston Lincoln, and Rutherford Counties

27.8%

Alleghany, Ashe, Buncombe, Burke, Caldwell, Catawba, Henderson, McDowell, Polk, Watauga, and Yancey Counties

20.5%

Avery and Mitchell Counties

7.6%

Haywood, Madison, Swain, and Transylvania Counties

4.3%

Cherokee, Clay, Graham, Jackson, and Macon Counties

8.5%


Public Comment Period

A critical aspect of this process is the public comment period, allowing voices to be heard until February 2. There are several ways to participate. Here are the exact details of how to get involved:

  • A public comment forum will be held to listen to public input on the North Carolina Rate Bureau’s rate increase request at the North Carolina Department of Insurance’s Jim Long Hearing Room on Jan. 22 from 10 a.m. to 4:30 p.m.  The Jim Long Hearing Room is in the Albemarle Building, 325 N. Salisbury St., Raleigh, N.C. 27603.

  • A virtual public comment forum will be held simultaneously with the in-person forum on Jan. 22 from 10 a.m. to 4:30 p.m.  The link to this virtual forum will be: https://ncgov.webex.com/ncgov/j.php?MTID=mb3fe10c8f69bbedd2aaece485915db7e

  • Emailed public comments should be sent by Feb. 2 to: 2024Homeowners@ncdoi.gov.

  • Written public comments must be received by Kimberly W. Pearce, Paralegal III, by Feb. 2 and addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201.



Role of Real Estate Professionals

As real estate professionals, this is a pivotal moment to advocate for your community. Engaging in the public comment process not only helps represent the interests of homeowners but also positions you as a proactive leader in the real estate community. Sharing information and advocacy efforts with your network can enhance your visibility and serve as a powerful tool for lead generation.


The proposed rate hike is a matter of concern for all stakeholders in the real estate industry. As real estate professionals, our participation in the public comment period is crucial. It's an opportunity to stand up for fair insurance rates and to demonstrate your commitment to the communities you serve.


Let us know in the comments or an upcoming CE class how you plan to get involved!

References

North Carolina Department of Insurance. (2024). 'Insurance Companies Ask for 42.2% Rate Increase for Homeowners’ Insurance.' [Online].

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