The state commissioner is currently considering this increase, which some agents are calling necessary.
Homeowners insurance customers could soon find that their premiums are headed strikingly upward in North Carolina, as the commissioner considers a price hike by an average of 18 percent.
Many customers are saying that this is an additional financial burden that is making the coverage unaffordable.
Many residents of the state are very upset and feel that an increase of this size is unfair and could make their homeowners insurance cost prohibitive. The average annual rate paid by people in North Carolina is currently $654, which means that the typical household is paying $55 per month for their coverage. Increasing premiums by 18 percent would mean an additional monthly $10.
Many people are reporting that they are already spending more on homeowners insurance than their basics.
Retirees on a fixed income have stated that they are already driving less to save money, but that they will also need to spend less on their medicine and groceries in order to cover the additional cost.
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The Rate Bureau made the request for the rate increase. That organization represents the homeowners insurance industry in North Carolina. There are several reasons that they feel that the higher rates are necessary, some of which include the recent severe storms that have caused damage and high insured losses in the state.
Also added to the list of justifications was the increase in the number of auto claims. This is relevant because many North Carolina residents have linked their auto and homeowners insurance policies.
However, considering the current economy in the country and within the state, this is one more increase that the residents need to face, on top of many others, from utilities to fuel and food. When it all comes down to it, it is up to Commissioner Wayne Goodwin to make the final decision regarding the homeowners insurance rates. It is within his authority to hold a formal public hearing in order to discuss the topic within the upcoming months.