North Carolina Coastal Insurance Rates to Rise May 1

Homeowners in 18 coastal North Carolina counties whose homes are insured by a state-backed insurance pool shouldn’t expect a delay of higher rates taking effect May 1.

A powerful state legislator said a comprehensive effort to fix the overextended Beach Plan won’t delay the premium increases of up to 30 percent. House Majority Leader Hugh Holliman said he’s negotiating with insurance companies and state regulators for an overall solution.

The plan’s $72 billion in commitments well outstrip its ability to pay if there’s a catastrophic hurricane.

Coastal lawmakers wanted legislation postponing the higher premiums, as well as insurance deductibles and surcharges that a judge last month ordered the insurance commissioner to reconsider.

The judge’s ruling blocked surcharges the Beach Plan was set to charge on new policies as of Feb. 1. The judge also froze a planned rise in the deductible level to 2 percent of a home’s insured value per occurrence.

However, that court order did not affect premium changes scheduled to begin in May as part of a deal insurers worked out with former Insurance Commissioner Jim Long. This settlement cuts premiums for homeowners in central and western counties, but increases insurance rates on homes by up to 30 percent in some coastal counties.

Topics Trends Pricing Trends North Carolina