NC Homeowners Await Rate Increase Decision

Homeowners in coastal NC are anxiously awaiting the rate increase decision currently under review by NC Insurance Commissioner Jim Long. The North Carolina Rate Bureau  (NCRB) petitioned Commissioner Jim Long seeking an average statewide rate increase of 19.5 percent for NC homeowners. 

Homeowners in coastal counties are expected to see the most dramatic hike over other inland counties.  Residents in the Outer Banks and the other  coastal counties could see rate NC home insurance rates increase anywhere from 32 to 70 percent.

The NCRB claims that the reason for the rate hike is to stabilize the state’s Beach Plan (the NC Insurance Underwriting Association) which is a government created insurance plan used to insure coastal homes where homeowners can’t obtain private insurance. The beach plan has, however, become the dominant policy provider on the coast- and currently does not have enough money to cover the losses from a catastrophic storm.

The proposed rate increase has a recommended effective date of May 1st.