RALEIGH, N.C. (WITN) -The N.C. Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau on its proposed 18.7% dwelling insurance rate increase as the two sides reached an agreement on a smaller increase.
On Dec. 14, 2020, the Rate Bureau, which represents companies writing property insurance in North Carolina and is not a part of the N.C. Department of Insurance, proposed a 18.7% statewide overall increase in dwelling insurance rates.
After studying the data, Insurance Commissioner Mike Causey says he negotiated a settlement for a much smaller rate of an overall statewide increase of 7.6%, which results in no more than a $25 increase in premium on the base rate.
Dwelling insurance policies are not homeowners’ policies. Dwelling policies are for owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner.
The increase will take effect on new and renewed policies beginning Nov. 1.
Commissioner Causey has set Jan. 18, 2022, as the hearing date for the Rate Bureau’s proposed overall statewide average of 24.9% increase for mobile home fire policies and an overall statewide average of 11.3% increase for mobile home casualty policies.
The hearing will be held unless the N.C. Department of Insurance and the N.C. Rate Bureau are able to negotiate a settlement before that date.
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