The North Carolina Department of Insurance has settled a months-long disagreement with the state’s rating bureau on mobile home insurance rates, resulting in an increase that’s about half of what insurers had wanted.
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Insurance Commissioner Mike Causey announced this week that the overall statewide average increase will be 12.5% for mobile home fire policies and 4.7% for casualty policies. The North Carolina Rate Bureau in February had recommended a 24.9% increase for mobile home fire insurance and an 11.3% increase in casualty coverage.
That set off months of negotiations between the bureau and the department, and hearings on the matter were rescheduled. A Jan. 18 hearing has now been canceled, the department said in a bulletin. The increase will take effect after May 1, 2022, for new and renewed policies.
A similar dispute over homeowners’ insurance rates is still brewing. The DOI said earlier this month that a hearing set for Nov. 1 had been postponed again, until Jan. 3. The Rate Bureau has recommended a 24.5% average increase for non-mobile home homeowners’ insurance policies, but Causey has balked at that.
The bureau’s 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 on homeowners insurance rates, 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.
Topics Pricing Trends North Carolina
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