NC State regulators and homeowners insurance companies reached a settlement that will allow overall statewide homeowners rates to increase an average of 7 percent beginning July 1, 2013. “It was better to settle at where we did than to take the risk that a hearing would have led to much different and costly results,” said Insurance Commissioner Wayne Goodwin.
Under the settlement, rates will increase by as little as 1 percent in some areas of the state, and as much as 19.8 percent in some beachfront areas of coastal counties. The industry had requested an average rate increase of 17.7 percent back in October that ranged from a high of 30 percent in parts of coastal counties to a low of 1.2 percent.
Under the settlement announced Tuesday, rates in Durham and Raleigh will increase 2.8 percent, well below the 11.8 percent requested by the industry. Rates in Charlotte will increase 8.4 percent, just below the 8.5 percent filed in the rate request.
The largest rate increase – 19.8 percent – will be in the beach areas of Brunswick, Carteret, New Hanover, Onslow and Pender counties. The beach areas of Currituck, Dare and Hyde counties also will see an increase of 17 percent. The areas farther inland in those coastal counties will see much smaller increases.
The settlement eliminates the need for a June hearing where the companies and Insurance Department staffers were scheduled to present arguments for and against the industry's October increase request. Read more here
