The N.C. Department of Insurance announced it has settled a legal dispute with homeowners insurance companies, ending a proposal that could’ve seen rates in Columbus County go up by over 60%. While the county’s renegotiated rate increase is far lower than what insurance companies had proposed, it will still be among the highest hikes across the state.
NCDOI announced its settlement with the N.C. Rate Bureau, a firm that represents homeowners insurance companies across the state, in a Jan. 17 press release. The bureau is not a part of NCDOI, the release notes.
In January 2024, the N.C. Rate Bureau proposed an average 42.2% statewide increase to take effect that year. For Columbus County, the proposal called for insurance rates to go up 63.1%. Some beach communities in North Carolina could have seen a 99.4% increase.
With the legal settlement, the N.C. Rate Bureau has agreed to instead raise the statewide average of homeowners insurance rates by 7.5% beginning on June 1, 2025 and by another 7.5% on June 1, 2026. Columbus County’s rates will increase by 11.1% and 10.8% respectively, according to the release.
According to the list of rate increases, out of North Carolina’s 100 counties only 11 counties will see a higher insurance rate increase than Columbus County in either 2025 or 2026. The highest rate increases in the state will affect beach areas in Brunswick, Carteret, New Hanover, Onslow and Pender counties, which will see their rates increase 16% in 2025 and 15.9% in 2026. Other areas within these five counties had their insurance rates increased separately.
In addition to the lowered rate increases, the agreement prohibits the N.C. Rate Bureau from attempting to increase rates again before June 1, 2027, the release says.
“North Carolina homeowners will save approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested,” Insurance Commissioner Mike Causey said in the release. Meanwhile, Causey said the agreed-upon rate increases “are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims.”
Causey hailed the settlement as “a big win” for both homeowners and the State of North Carolina.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.