NC Homeowners Insurance Rate Increases Reviewed & Extended

25 Jul

North Carolina residents won’t have to worry about homeowner insurance rates going up, at least for a bit longer. North Carolina’s insurance Commissioner, Mike Causey has decided to extend the hearing scheduled for the proposed statewide increase from Sept. 4, 2019, to Oct. 2, 2019.

The hearing is to discuss the proposed statewide average increase of 17.4% to homeowner insurance rates. Causey said in the announcement that he needs additional time to review the documents that have been filed by the North Carolina Rate Bureau (NCRB) which represents insurers in the state. 

“There is a pervasive lack of documentation, explanation, and justification of both the data used, as well as the procedures and methodologies utilized in the filing,” Causey said in a statement released by NCDOI. “The proposed rates appear to be excessive and unfairly discriminatory and I want more time to study the data to ensure our consumers are treated fairly,” Causey continued.

The new hearing date is 10 a.m. on Oct. 2 and will be located in the Second Floor Hearing Room in the Albemarle Building, 325 N. Salisbury St., Raleigh. If the NCDOI and the NCRB can reach an agreement before that date the hearing will end up being cancelled. The NCRB filed their request for an average statewide 17.4 percent increase on Dec. 20, 2018. This filing requested rate increases for residential property, tenants, and condominiums.

The last time the NCRB requested an increase was in 2017 when they asked for an average increase of 18.9 percent but ultimately settled with Causey on an average increase of 4.8 percent.

Who’s Paying the Most for Homeowners Insurance

Let’s have a quick look at the zip codes with the least and most expensive homeowner insurance policies according to data. These prices are based on $200,000 dwelling coverage, a $1,000 deductible and $100,000 in liability coverage:

Most expensive ZIP codes in North Carolina for homeowners insurance:

The most expensive zip codes for homeownes insurance in North Carolina are all coastal areas. In addition to these cities, oceanfront areas such as Wrightsville Beach, Atlantic Beach, and Nags Head will all have higher than average homeowner insurance costs due to the risks that coastal living presents. Severe thunderstorms, hail, hurricanes and flooding are always a risk when you live near the ocean and those risks push up the cost of homeowners protection. 

On the other side of the coin are the least expensive ZIP codes for homeowners insurance in the Tar Heel State:

The difference is shocking with coastal insurance costing almost three times the cost of more inland locations. This is due to the fact that inland property is less likely to experience severe damage due to storms or hurricanes. 

If you live in one of North Carolina’s largest cities you can expect your premium to be a bit higher than an inland property but well below the cost of living on the coast. Here are average rates for some of North Carolina’s largest cities according to

A Few Tips to Lower Your Premium

Here are a few tips to help you lower your homeowners premium regardless of whether you live on the coast or more inland:

Update Your Home: This is especially true if you live near the coast. Putting a wind resistant roof on your home, storm shutters or a sprinkler system can result in significant savings. Contact us to see which updates would bring the most savings.

Up Your Deductible: Pushing up your deductible is a great way to lower your premium. If you can afford to double your deductible it should result in significant savings. Always choose a deductible that you can easily afford in the event you have to make a claim.

Shop Your Coverage: This is one of the best ways to lower the cost of your homeowners insurance. Insurers rate risk differently which can result in dramatic differences in premium quotes. Shop your coverage on a yearly basis and get quotes from at least five different insurance companies. 

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