Homeowners insurance rate increase proposal coming from state insurers
Homeowners in North Carolina may soon see their insurance rates jump if insurers are granted approval for proposed rate hikes. Many of the state’s insurance companies are looking to raise rates on homeowners insurance coverage to account for several risk factors that companies believe consumers are confronted with. Homeowners insurance in North Carolina has been a tricky subject recently, with many insurance companies looking to mitigate their exposure to the risks associated with powerful natural disasters, which have caused some havoc in the U.S. insurance industry in the past.
Insurers pursue average 18% rate increase
Though 2012 has been a relatively calm year in terms of natural disasters in the U.S., North Carolina homeowners insurance companies are still keen to implement rate hikes. The most recent proposal coming from insurers calls for the average rate increase of 18% on policies throughout the state. Homeowners in some parts of the state will see their rates raise higher than that mark, while others will see increases below that mark, all depending on the risk associated with the location in which they inhabit.
Regulators to investigate necessity of higher rates
The North Carolina Insurance Department is currently evaluating the homeowners insurance rate increase proposal coming from insurers. Regulators are tasked with determining if rate increases are justified and whether or not such a large increase is necessary. Homeowners have until October 19, 2012, to submit their views on the matter to the North Carolina Rate Bureau, an agency that represents the state’s insurance companies.
Any new rates will not take effect until June, 2013
If regulators and insurance companies cannot come to an agreement on the matter of homeowners insurance rates, the two parties will submit their arguments for public hearing. These arguments will be open to consumers, who will again be given the opportunity to share their view on the matter. If regulators approve the rate increase proposals, new rates will not take effect until June of 2013 at the earliest. The last time the state’s homeowners insurance rates were raised was in 2008, wherein insurers pursued a 20% increase but were granted approval for a 4% increase.