Carolina Homeowners Give an Earful on Proposed 42% Average HO Rate Increase

North Carolinians have had plenty to say about a proposed homeowners insurance rate increase that could, on average, raise rates in the state by double digits.

At a public forum held online and in Raleigh, homeowners blasted the 42% average rate hike, which was proposed by the North Carolina Rate Bureau earlier this month. The state Department of Insurance also has received more than 9,000 written comments, and more are expected before a comment period closes Feb. 2, according to local news and DOI reports.

One woman said such a rate increase would force her family to choose between paying the mortgage and buying groceries, WFAE public radio reported. Some coastal county properties could see premiums almost double, under the proposal.

State Insurance Commissioner Mike Causey was not at the forum, but he released a statement Monday explaining that the rates proposed by the Rate Bureau are based on input from insurance carriers. The bureau then negotiates with the commissioner. A final rate is usually set at a fraction of what the bureau had asked for.

Causey’s office has until Feb. 22 to review the Rate Bureau proposal. If the office determines that the proposal is not actuarily sound or is excessive, it will hold a public hearing before negotiating a final rate increase. Carolina insurance carriers, like insurers in a number of states, have said steep increases are needed to offset inflation and the rising costs of climate change and storms.

Causey said in his statement that he was not present at the forum Monday so that he would not be accused of prejudging a rate request before a hearing and department review are completed.

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