- Beachbook
- Coastal Review Online
- Dare County
- Duck
- Island Free Press
- Kill Devil Hills
- Kitty Hawk
- Manteo
- Nags Head
- Nighthawk News
- Southern Shores
- Bill's OBX Beach Life
- N.E.S.T Online
- Natural Outer Banks
- Red Headed Beach Girl
- Rosie Hawthorne
- See more local blogs »
Goodwin delays request for home insurance hike
State Insurance Commissioner Wayne Goodwin has denied a request by the insurance industry to raise rates for homeowners by as much as 30 percent in some counties, including Dare, Currituck and Hyde.
Calling the request by the N.C. Rate Bureau “excessive and unfairly discriminatory,” Goodwin’s ruling sets up a hearing on the increase next spring, after November’s election.
Goodwin, a Democrat, faces Republic Mike Causey in the election. Insurance commissioners, however, often reject initial requests for rate increases.
Goodwin will serve as the hearing officer and listen to experts from the state Department of Insurance and the Rate Bureau, which represents insurance companies, before deciding on any changes.
The hearing, which will be open to the public, is scheduled to begin on June 3, 2013, at 10 a.m. at 430 N. Salisbury St. in Raleigh.
The Rate Bureau requested an average increase statewide of 17.1 percent for homeowners, not just fire, theft and casualty, but wind policies as well, beginning next June.
While areas in western North Carolina would see increases of only 1.2 percent, and metropolitan areas in the central part of the state would see hikes of around 11 percent, coastal counties would be hit with increases reaching 30 percent.
The last homeowners’ insurance rate filing was in 2008, when the insurance companies requested a 19.5-percent statewide average increase.
A settlement allowed a 4.05 percent statewide average increase to go into effect in May 2009.
About 8,800 comments were e-mailed or mailed, and about 35 people made comments during a meeting Oct. 17 on the request.
According to a news release, department experts believed the requested rate increases are not justified based on the data submitted.
Among the reasons were old data being used to base the request, and that risk factors sited by the Rate Bureau did not appear to be justified.
Goodwin’s statement said the Rate Bureau uses a methodology that results in excessive profit factors of 10.5 percent, which is not allowed in North Carolina and has been successfully challenged in a 2001 auto insurance case decided by the N.C. Supreme Court.
The finding also said the Rate Bureau includes a factor for discounts that some insurers give some of their policyholders that, in effect charges discounts back to consumers which has also been disallowed numerous times in auto filings litigated in the state Supreme Court.
Hurricane losses are derived using a hurricane model that does not appear to be adequately documented or justified, according to the statement.
Any decision made by Goodwin on the rate request following next June’s hearing will likely head to the courts for a final decision.
See what people are saying:
Join the discussion:
- MOST READ
- MOST DISCUSSED
OBXER says:
Good on ya Wayne Goodwin!
If we are gonna bash people for not doing the right thing we should congratulation those who do good for the people !
Valorie says:
Thank you Lord!!
wickedinduck says:
thank you wayne…
Susan P. says:
Yipee!!! I am so thankful. Now if Dominion would stop their proposed rate increase, things would be great!!
Joyce Herman says:
Thank you Mr. Goodwin. A reprieve until Spring.
JAK says:
Very thankful, the average household dodged one bullet.
Frank Moore says:
Well done Wayne, thank you.
Watt Jones says:
It’s No great surprise that the folks with the Outer Banks Tea Party call this move by Commissioner Goodwin “a coincidence”. Commissioner Goodwin has the authority to set a hearing on the rate increase, which he has done. It shouldn’t be any great surprise to the OBX Tea Party that Commissioner Goodwin has consistently denied and asked for hearings on other rate increases. Maybe one day they will learn to be more appreciative instead of trying to make political stunts out of everything!
beachlivin' says:
Finally!!! Good News from government for once.
Brenda says:
Don’t know how some people can afford insurance now, thanks for not increasing, ,,,,,,,
Ray Midgett says:
I am confident this decision was made because everyone in Raleigh knew that Paul Tine would be riding to Raleigh on his white horse to save the day !!!
KDH Rezident Evil says:
Whatever the color of the gift horse, I will not look it in the mouth.
Of course, depending on what HurriStorm Sandy does, the insurance companies might have a stronger leg to stand on.
Mike Castano says:
Well that’s good news!
Duke Geraghty says:
What the Commissioner did was postpone any increase until next summer’s hearing. He will hear testimony from Dept of Ins and the Rate Bureau. Then the decision is left up to one person. Postpone your enthusiasm until after the hearing and see what kind of increase he approves. It seems archaic that this decision is left up to one man and not a commission like the Utilities Commission. As has been the case for as long as I have lived in NC, the Commissioner(past and present) just doesn’t get it. I have been told by the former, “just be grateful you have insurance, stop complaining about the cost”. Even without an increase, we are still paying 3-5 times the cost of western counties. We receive no discounts, We have a higher deductible, 1% per storm occurrence, a yearly inflation clause which raises premiums annually even when the cost of building has gone down, and a 40% of policy value charged for personal property. Basically we are all over insured. And I will give everyone some advice that has been stressed over and over, check the policy value. It should be for the cost of rebuilding your home to present condition, not the mortgage amount, not what you think it is worth, not the tax value. If you insure your home for $300K but only will cost $150K to rebuild, Then you will not get the $300K. Deduct water taps, septic, driveways, land clearing, etc. If your pilings or foundation withstand a hurricane or fire, then you will not get paid to replace them. Be a smart consumer and have your home evaluated for rebuilding costs, no matter who gets elected Insurance Commissioner. But this is good news and thanks to Willo Kelly and NC 20, the Outer Banks Home Builders Association and the Outer Banks Association of Realtors for paying such close attention to the issue for all of Coastal Carolina.
Elaine G says:
Thank you Commissioner Goodwin! Now we all need to mark June 3rd for the next round, and if we can’t be there in person for the hearing, please let us know how we can comment again. OB Voice, thanks for keeping us posted on this matter!
Frank Sciacchitano says:
Mr. Goodwin did the right thing. Excessive and unwarranted homeowner rates will “kill the goose who lays the golden eggs”. Homeowners and taxpayers here on the Outer Banks afford Dare County and the State of North Carolina to fund projects which benefit all residents in the State and those who visit this beautiful place. Commissioner Goodwin needs to continue to be a good steward for taxpayers/homeowners here on the Outer Banks. Thank you, Commissioner, for your time and interest and more importantly for listening to us residents who are confronted with these excessive homeowner rates.
beacheye says:
Nice exchange- Insurance companies make Goodwin look like the hero now, he gets re-elected, then he gives them their rate increase later as a way to return the favor.
Duke Geraghty says:
Beacheye gets it
Elaine G says:
Mr. Geraghty,
Thanks for the advice on policy/value rebuilding costs!
Shaking My Head says:
@beacheye… I share your cynicism. While I’m grateful for the delay, it seems like the timing was perfect for a political move to be played here. I would love to see the campaign contribution report.
Old Salt says:
Hope the next story isn’t “Insurance company X to stop writing NC homeowner policies as of 1/1/13″
Selena K says:
Two words for the hot shots west of here, who for wholly political reasons don’t share our Wind & Hail premiums burden equally:
Hugo. Floyd.
That is all.
just curious says:
BeachEye does get it, and if Paul Tine is elected how will he protect us local taxpayer homeowners from an increase in the spring? Did Tine go to raleigh? What did he say? He is in the insurance business. What is Mattie Lawson’s stance on this? Noone raises taxes (or insurance rates) BEFORE an election, its what they do after the election… Paul Tine and Mattie should answer, after all if elected they will be representing us.
obxdad says:
Some great points – Spending is really more valuable to the economy, as that’s money that is DOING something, priming the pump, becoming someone’s income, which is then spent again, and becomes someone else’s income, and so on.
Tax cuts, especially those for the rich, are great if you ARE rich, but are generally just saved instead of being spent, so no demand increase, no incomes increase, no jobs created.
The Thrift Paradox is the main reason the economy does better when the rich are taxed at high marginal rates.
XZDC says:
Well said , Duke.
obxdad says:
Oops, meant to post that on Russ’s commentary.
Duke gets it… this is a sham.
What would it take for eastern NC to self-insure?