North Carolina homeowners will soon see an average 7.5% increase in homeowners insurance rates statewide.
The increase takes effect June 1 and comes after negotiations between Insurance Commissioner Mike Causey and the insurance industry. Insurers had originally requested an average 42% increase statewide before Causey rejected the proposal in 2024.
The final agreement lowered those proposed increases substantially, but homeowners and Democratic leaders say the approved rates still place additional financial strain on families already struggling with rising housing and recovery costs.
According to Bankrate, the average cost of homeowners insurance in North Carolina is about $2,951 per year, which breaks down to roughly $246 per month for a home with $300,000 in dwelling coverage. That is higher than the national average of $2,424 annually.
A recent report from the U.S. Government Accountability Office also found some North Carolina communities experienced insurance premium increases exceeding 50% after adjusting for inflation between 2019 and 2024, particularly in coastal areas vulnerable to severe storms.
State Sen. Natalie Murdock, D-Chatham and Durham, said homeowners across the state are facing policy non-renewals, denied claims and rapidly increasing premiums.
WRAL News reached out to the North Carolina Department of Insurance on Wednesday. A spokesperson outlined the responsibilities of the office- finding insurance companies are making enough to pay claims, while ensuring rates are not excessive or discriminatory.
The DOI also provided tips to help homeowners save:
- Shop around- not every insurance company is going to have the consent-to-rate
- Make sure you’re covered for the right amount- don’t pay for more than you need
- Ask insurance company if they have discounts available
- The higher the deductible, the less your insurance is going to be
The spokesperson stopped short of describing North Carolina as a state in an “insurance crisis.”
Democratic Party Chair Anderson Clayton criticized Republican leaders for failing to pass a state budget and provide more assistance to homeowners and small business owners recovering from Hurricane Helene.
Homeowners and business owners from Western North Carolina shared personal stories about rising insurance costs.
Tony Dunn said he moved to North Carolina after losing his home in California’s 2018 Camp Fire, believing the state carried less climate-related insurance risk.
“We moved here because we thought we weren’t going to have insurance issues,” Dunn said.
Dunn said that despite not suffering damage during Helene, his homeowners’ insurance costs have nearly tripled over the past six years, including a 30% increase after the storm hit.
Alex Webber, a small business owner, said she relocated from New Orleans to western North Carolina after Hurricane Katrina before later moving from Asheville because of rising property costs.
Webber said Helene flooded her Madison County business with several feet of water, causing significant damage. She said both her homeowners’ and business insurance premiums increased roughly 50% afterward, despite receiving no FEMA assistance.
WRAL News reached out to Republican U.S. Reps. Greg Murphy and Chuck Edwards for comment on Wednesday.
A spokesperson for Murphy provided the following statement:
“Unlocking America’s Future is a hack special interest group, and those involved in this stunt should be ashamed. For starters, in 2024, Dr. Murphy successfully led the NC congressional delegation’s effort to reject the Rate Bureau’s proposed increase in homeowner insurance rates. He introduced legislation to reform the National Flood Insurance Program to enable owners of condemned homes to receive timely insurance payouts. And finally, this Congress, his Disaster Related Extension of Deadlines Act was signed into law by the President of the United States. Dr. Murphy’s top priority in Congress is to make life more affordable, and his record of delivering for homeowners could not be stronger. Further, he voted for the largest middle-class tax cut for Americans in decades, which every Democrat voted against, and is singlehandedly taking on the most powerful lobby in Washington, greedy health insurers who deny patients care and bankroll Democrat campaigns.”
WRAL News has not heard back from Edwards.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.