A hearing set for today on a proposed 24.5% average increase in homeowners’ insurance rates has been postponed until Jan. 3, the North Carolina Department of Insurance announced.
The rate increase was recommended by the North Carolina Rate Bureau one year ago and has met with stiff opposition from realtors and homeowner groups since then. The Rate Bureau is not part of the insurance department but represents insurers in the state. Insurers have said that increased wind and hail losses from storms are the main drivers behind the requested increase.
Insurance Commissioner Mike Causey said in a news release that the January hearing will proceed if the department and the rate bureau cannot negotiate a settlement for a lower rate increase. This is the second time the hearing has been postponed. A Sept. 20 meeting was rescheduled for today, Nov. 1.
The recommended increase follows one in 2018, in which the bureau asked for a statewide average hike of 17.4%, but later settled for a 4% increase.
In April of this year, the bureau had proposed an 18.7% average increase in dwelling insurance, for rental and investment properties, but settled for a 7.6% rise after negotiating with the department.
If the two sides do not reach a compromise, the hearing on the latest proposed increase will be Jan. 3 at 10 a.m. in the Albemarle Building, 325 N. Salisbury St., in Raleigh.
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