Rental owners will pay about 4.8 percent more for insurance

By on June 28, 2018

Oceanside in Nags Head. (Pat Morris)

Owners of rental properties will pay an average statewide of 4.8 percent more for dwelling insurance next year  under an agreement announced Wednesday by the North Carolina Department of Insurance.

In coastal Dare, Hyde and Curriuck counties, rate increases will run closer to 9 percent for buildings when wind and hail coverage are factored in.

The North Carolina Rate Bureau, which represents insurance companies, had asked for an 18.9 percent increase in February.

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“This settlement means consumers will save approximately $41 million a year compared to what they would have paid had the Rate Bureau’s request been approved,” Insurance Commissioner Mike Causey said in a statement. “The agreement also keeps insurance companies on firm financial footing, which is good for North Carolina’s economy.”

Typically, the rate bureau asks for a large rate increase, the commissioner disputes it and sets a hearing, then takes credit for a settlement at a significantly lower rate. That happened with rate increases for primary residences earlier this year.

In April, Causey dialed back a request for a homeowners rate increase that could have pushed coastal policy costs up by as much as 25 percent. Rates will vary by territory from an average of 4.8 percent to a maximum of 5.5 percent statewide.

This week’s settlement applies to polices for non-owner-occupied residences of no more than four units, including rental and investment properties.

The new rate will go into effect Feb. 1, 2019.

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Comments

  • Bud

    They should be paying more into the community rather than a greedy corporation.

    Thursday, Jun 28 @ 9:42 am
  • Melvin Miller

    It has been over 5 years since a accountable hurricane hit Corolla. There have been some flood/rain storms. BUTt why a 10+ % insurance TAX?? We we’re just hammered with a fire/police tax WE Do not need.
    M. Miller
    Pine Island, Corolla Owner

    Monday, Jul 2 @ 2:22 pm
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