Commissioner cuts bid for homeowners insurance rate hike

By on April 19, 2018

A waterspout damaged this house on Roanoke Island. (Lisa Davis)

The state insurance commissioner has dialed back a request for a homeowners rate increase that could have pushed coastal policy costs up by as much as 25 percent.

Under a legal settlement with the North Carolina Rate Bureau, which represents insurance companies, rates will vary by territory from an average of 4.8 percent to a maximum of 5.5 percent statewide.

“I have negotiated a rate that will have minimal impact on the coast yet keep the state’s insurance companies financially sound,” Commissioner Mike Causey said in a statement.

“On the Outer Banks, residents with a $200,000 home will see an average rate that is more than $400 less per year than what the NCRB originally proposed,” Causey added.

The rate bureau had orginally sought an average increase of 18.5 percent statewide.

Under the agreement, a house in Dare, Currituck and Hyde counties valued at $200,000 would see an increase of about $120 annually or $10 a month.

The agreement will preclude a hearing set for July. It will go into effect Oct. 1.

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  • Alex

    Ridiculous either way. Had coverage for 16 years and never filed a claim. In 2016 we suffered storm damage from neighbor’s home falling apart during the storm and sent parts of it into our home. Insurance company and NCJUA denied everything saying that storm shutters that were crushed by wood from our neighbors house as it fell apart was “cosmetic”.
    Gas tank that floated into and under our home from the same house destroyed our stairs and part of the septic system, again denied any coverage under homeowners wind or beach plan.
    Ended up paying 6K out of pocket while they make millions sending out form letters for denying claims.
    Spoke to our Farm bureau agents secretary about looking at reducing our bill and she said ” He will get back to you”….That’s been 5 days ago and the phone has not rung yet….

    Thursday, Apr 19 @ 1:08 pm
  • Mark

    Seems off to me. $120 for a 200K house value is way more than 5% for Home Owners Insurance. Now if this is 5.5% of ALL insurances (HO/Wind/Hail/Storm) then that could be significantly more than $120. Most houses on the OBX are assessed more than $200k

    Thursday, Apr 19 @ 4:32 pm
  • Rob

    Ask your agent and read the fine print. The deductible depends on your house worth. It could be $10K and up deductible around here on OBX. While we pay high insurance rates we have giant out of pocket fees. Unfortunately , We are working to pay insurance Corporations whether it be home owners, auto or health, and they are getting HUGE tax cuts while we suffer and get our yearly increases. When we place a claim they find every excuse To deny or if they pay we get punished by being on a blacklist because we HAD to place a claim causing our rates to increase!

    Thursday, Apr 19 @ 8:34 pm
  • Dorie

    I too have NCJUA and had roof leaks throughout my whole house from a named storm and the adjuster they sent out denied the claim so I requested another to meet me with a contractor and they sent the same guy who denied me again. I requested a copy his report and was refused .. I’m sorry but I pay for that insurance and feel like I have a right to see his report. I ended up having to pay $4000 to replace my roof not including the repairs to the ceiling on the inside. Why are we forced to pay such high premiums for something we cannot get assistance with when we need it? My next call will be to the Insurance Commission..

    Thursday, Apr 19 @ 9:21 pm
  • Windy Bill

    Not too many years a real tornado started in Currituck , crossed the sound and crossed completely over a mostly built out subdivision in Duck. Damaged many homes superficially, but None were destroyed. When was the last time this happened in Dare? Houses built here over the last decades (the vast majority) are built to withstand high storm winds. The so called ‘wind insurance’ is the biggest fraud ever perpetrated on the homeowners east of I95. Waves, a flood insurance issue, is what destroys most coastal houses in storms.
    Voters are the only citizens the govt will pay attention to and we need need to make this the major campaign issue for legislature, senate, governor and insurance commissioner. The insurance pigs put the dividing line where the minority of the population lives. Ever heard of divide and conquer? Every part of the state has unique hazards; that is why a larger area covered under the same insurance shares the risk fairly. Voters must demand equal insurance rates across the state.

    Friday, Apr 20 @ 6:22 pm
  • Charles Peele

    Decks and steps were never covered by Flood insurance, and damages from rising water is excluded from Homeowner policies. Wear and tear is not covered period, so when a buildings roof is at the end of its useful service, there is nothing to loose. It had little or no value. Some policies will replace new for old, but some are Actual Cash Value policies. Wind deductibles are very high.

    Know your policy, and understand what you have selected and omitted. Dont wait until you have damages to ask questions.

    Saturday, Apr 21 @ 4:30 pm
  • Cecil

    Thanks commish,but do you really think the insurance companies need another raise to keep themselves “financially sound” as you put it? We think they’re PRETTY “financially sound” as it is !! Legal crooks !!

    Tuesday, Apr 24 @ 6:11 pm
  • Ned Flanders

    Remember, your insurance commissioner is ELECTED in NC. Know who they are and what they are able to realistically do BEFORE voting or even complaining. Let’s be honest, NC’s entire OBX is subsidized heavily by inland tax payers. Quit whining about the cost and claiming it is unfair. Very few of you living in flood or wind zones would be able to ow your houses with out welfare provided by the government. Add to that the bridges needed to maintain the barrier islands shifting, sand replenishment, and a host of other costs, most of our communities are only viable due to others who mostly live inland.

    Friday, Apr 27 @ 4:54 pm