North Carolina Homeowners, Mobile Home Rates Going Up

The North Carolina Department of Insurance and the North Carolina Rate Bureau have settled a legal dispute over a proposed premium increase for homeowners insurance rates, according to a statement from NCDOI.

NCDOI has also negotiated a settlement with the NCRB on mobile home insurance rates.

Homeowners rates will see an overall statewide increase of 4%. The increase will take effect on new and renewed policies beginning on or after May 1, 2020.

NCRB, which represents companies writing property insurance in North Carolina and is not a part of NCDOI, proposed a 17.4% statewide overall increase in homeowners’ insurance rates in 2018, but NCDOI said after studying the data, a settlement was negotiated for the overall statewide increase of 4%.

Because a settlement has been reached, a hearing scheduled for Oct. 2 was canceled.

The 4% increase will vary according to territory, with a cap of 10% statewide instead of the 30% cap in some coastal territories initially requested by the NCRB. The highest negotiated rate increase is 9.8% in some coastal territories. The western-most territory in the state will see an average 0.1% decrease.

Mobile home insurance

In February, the NCRB requested an overall statewide average increase of 19% for MH-C (Casualty) policies and an overall statewide average increase of 19.9% for MH-F (Fire) policies. Both MH-C and MH-F programs provide property and liability coverage. The agreement reached between the Department of Insurance and the NCRB provides for an overall average increase of 4.3% for MH-C policies and an average overall statewide rate increase of 6.6% for MH-F policies.

Rates will vary according to territory.

Both mobile home insurance changes are effective for new and renewed policies written on or after May 1. 2020.

Topics Trends Pricing Trends North Carolina Homeowners