HomeHome InsuranceHomeowners insurance could increase by 42.2% in North Carolina this year

Homeowners insurance could increase by 42.2% in North Carolina this year

NORTH CAROLINA (WWAY) — Proposed homeowners insurance for North Carolinian’s could rise more than 42%, but some parts of the Cape Fear may see more than double that rate.

The North Carolina Rate Bureau has filed a request with the North Carolina Department of Insurance to raise homeowners insurance rates by 42.2%.

Brett Lascara, an insurance agent with The Huneycutt Group said there are various reasons this is happening.

“Probably the biggest factors would be inflation, insurance companies are feeling the full brunt of that. We’re seeing all these different weather catastrophes that are hitting across the country and we’re impacted here by those catastrophes,” Lascara said.

If approved, some of the biggest increases would be in the Cape Fear.

The Rate Bureau is requesting a 99% increase for home insurance in the beach areas of Brunswick, New Hanover, and Pender counties. A 71% increase for the eastern coastal areas of those counties. Columbus County and Bladen County would also be above the average rate increase.

Department of Insurance Commissioner Mike Causey will be the one who decides what the exact rate will be and explained how the process works.

“When companies feel like they need to raise their automobile insurance rates or homeowners insurance rates, they’re required by state law to issue a request and they have to justify what they’re asking for,” Causey said.

According to Brett Lascara, the best thing for homeowners to do right now is to sit tight.

“You’ve got to stay patient. You’ve got to reach out to your agent when you get your renewal. Often times we’ll have a lot of different options that we can shop the markets and find you a policy that may not have fit last year, but it does fit better for you this year.”

Commissioner Causey said a very similar situation happened in November of 2020.

“The insurance industry can come back and talk about it and in every case we had entered into negotiation, and reached a favorable settlement for consumers. Which was in most cases was less than a third to a quarter of what the industry had originally asked for.”

For those who would like to have input, a public comment forum will be held on January 22nd in Raleigh; as well as a virtual public comment forum that will happen simultaneously.

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