Insurers in the state are seeking a massive average increase to follow large hikes over recent years.
If the proposals of insurers of the state are accepted, the North Carolina home insurance rates could increase by an average of 25.3 percent, representing yet another major spike in the amount that residents will need to pay in order to maintain their coverage.
The amount that is being sought in terms of increases varies from one region of the state to the next.
For example, the changes requested for the rates of North Carolina home insurance in the cities of Durham and Raleigh are an average of 24.4 percent, whereas the industry is seeking a much larger 32.1 percent increase in the remainder of Durham and Wake counties as well as in Orange and Chatham counties. The commissioner in the state, Wayne Goodwin, has already expressed his strong displeasure with the request from the industry.
Goodwin requested that the industry North Carolina homeowners insurance rate increase proposals immediately.
Overall the changes that have been requested by insurers in the state have ranged from a 2.7 percent decrease, all the way up to an increase of 35 percent. The largest increases are being requested in areas along the coast. That said, Commissioner Goodwin has spoken out against the proposals and has asked the industry for an immediate withdrawal of the current figures. It is up to Goodwin to give his approval or rejection of any rate increase request.
The director of the N.C. Rate Bureau, Ray Evans, explained that the request is a reflection of the higher claims that are being made by policyholders over the last few years. He also noted that the industry is currently making a considerable effort to try to catch the rates up to the actual current costs as it has consistently been able to receive approval for increases that were lower than had been requested.
The last increase that was sought by the North Carolina homeowners insurance industry was in 2012, at which time they tried to obtain an average hike of 17.7 percent. When all was said and done, Goodwin compromised and granted an average increase of 7 percent.