Homeowner’s Insurance to Increase by an Average of 7 Percent in NC

Homeowner’s Insurance to Increase by an Average of 7 Percent in NC

The top state insurance regulator in North Carolina signed an agreement March 5 which will allow companies to raise homeowner’s insurance policies by an average of 7 percent statewide a year beginning in July.

According to reports, Wayne Goodwin agreed to the increase, which is less than the 17.7 percent increase the North Carolina Rate Bureau requested in October.

“Homeowners insurance is a very complex issue. We face a great challenge in making sure that it is not only affordable, but available, to consumers across the state,” Goodwin said in a statement. “I feel this settlement helps strike that balance, and I am pleased that the increase will be significantly smaller than what insurers originally requested.”

The last homeowner’s insurance rate increase that the state saw occurred in 2009. The increase was 4 percent, even though the insurance companies sought a 19.5 statewide average increase.

Homeowner’s along the beach in Brunswick, Carteret, New Hanover, Onslow and Pender counties will be hit the hardest, with premiums possibly reaching as much as 19.8 percent. Beach homes in Currituck, Dare and Hyde counties could experience a 17 percent rate increase. According to Goodwin, the beach areas will be hit with a higher increase because of the risk for hurricane damage.

Other areas throughout the state don’t have it as bad. Insurance rates in Winston-Salem and Greensboro will be allowed to increase as much as 1 percent and rates in Charlotte could increase by 8.4 percent. Raleigh and Durham homeowner’s could be hit with a rate increase of 2.8 percent.

For more information about these rates, contact Kelly & West. Our attorneys have been helping clients in North Carolina with real estate transactions for more than 20 years. We would be happy to answer any questions you may have.