The state regulator has now signed an agreement that allowed for the statewide increase.
The leading homeowners insurance regulator in North Carolina has just given their approval to allow insurers in the state to increase their rates by an average of 7 percent per year, beginning in July.
The original request had been much higher than that in October, but the Commissioner has found 7 percent to be justified.
In October 2012, the North Carolina Rate Bureau had requested 17.7 percent, on average, as an increase across the state. Though Commissioner Wayne Goodwin did not give approval at that time – saying that regardless of who won the election a few days afterward and whether or not he kept his job, the insurers would have to be able to justify the increase request. That increase would have gone into effect in June.
This new 7 percent increase has, according to the commissioner, been justified, where the other was not.
Goodwin released a statement that said “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.” He added that “I feel this settlement helps strike that balance, and I am pleased that the increase will be significantly smaller than what insurers originally requested.”
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The last time there was an increase in the homeowners insurance rates in North Carolina was in 2009. At that time, the insurers had been attempting to raise their premiums by 19.5 percent. However, when all was said and done, they settled for an increase of 4 percent.
This year, the homeowners insurance rates will be permitted to increase by a minimum of 1 percent in Greensboro and in Winston-Salem. In Charlotte, there will be an average rise of 8.4 percent. This means that in that area, a frame home valued at $150,000 will be paying about $45 more, raising the average annual premium to $574. There will be an increase of 2.8 percent in Raleigh and Durham, which would bring the premiums for the same home up to $682.
At the same time, Carteret, Brunswick, Onslow, New Hanover, and Pender counties will seen an average homeowners insurance increase of 19.8 percent. Similarly, Hyde, Dare, and Currituck counties will pay 17 percent more.