Homeowners insurance rate hikes up to 30 percent proposed

By on December 21, 2018

(Submitted by Willo Kelly, CEO, Outer Banks Association of REALTORS)

The North Carolina Rate Bureau (NCRB) submitted a Homeowners Insurance Rate Filing to the NC Department of Insurance NCDOI) on Dec. 20.

The filing reflects an overall statewide average increase of 17.4 percent for homeowners, renters and condominium rates.

However, NCRB has requested a rate increase of 30 percent in the homeowner rate in the beach (barrier island portion) areas of Currituck, Dare and Hyde counties and a 25 percent increase in the homeowner rate in the inland areas of Currituck, Dare, Hyde and Pamlico counties.

The data included in the filing indicates the need for a rate increase up to 94 percent; however, the Rate Bureau decided to cap the  increase at 30 percent to reduce the impact on policyholders. Filed tenants (renters) and condominium rate increases are between 5 percent and 15 percennt. Homeowner rates are based on $200,000 coverage, protection class 5 with frame construction.

A portion of the homeowner rate is for wind; therefore, the filing will have an impact on Wind Only policies, including policies in the NCIUA which has commonly been referred to in the past as the “Beach Plan.” Because the wind rate makes up the majority of the overall homeowner rate, an Outer Banks wind only policyholder may be facing a premium increase of over $700 with $200,000 of coverage.

NCDOI will begin the process of reviewing the filing to determine if the filed rate changes are warranted and not unfairly discriminatory or excessive. A public comment period is open now through February 26, 2019. Comments can be emailed to 2018Homeowners@ncdoi.gov or mailed to Tricia Ford, Paralegal Administrator, 1201 Mail Service Center, Raleigh, NC 27699-1201. A public comment forum will be held on February 26, 2019 from 10 a.m. to 4:30 p.m. in the second floor Hearing Room of the NC Department of Insurance, located at 325 N. Salisbury St., Raleigh, NC.  The forum will be a listening session type event, with no response from NCDOI. The public will not have any opportunity to comment after February 26.

If in agreement with the filing, NC DOI Commissioner Mike Causey does not have to respond, and the filing becomes effective October 1, 2019. Causey may deny the filing and call for a hearing or he may negotiate a settlement with NCRB on the filed rates that vary from the rate filing. As with the last homeowner rate filing, Causey can also call for a hearing and reach an agreement with NCRB prior to the hearing being held. New rates just went into effect on October 1, 2018 for homeowner, tenants and condominium policyholders.

The filing can be found in its entirely by going to http://www.ncdoi.com/PC/Filing_Search.aspx, search by SERFF number, Begin Search, Accept terms and enter the SERFF tracking number NCRI-131761557 in the appropriate field. The current rate territory map can be found HERE

Below is a breakdown of the filed rate changes for eastern NC.

Territory Territory Definition% Filed Homeowner Rate
Change
 2018

Current Rate

10/1/2019 Effective Filed Rate
110Beach areas of Currituck, Dare & Hyde Counties+30%$2,383$3,098
120Beach areas of Brunswick, Carteret, New Hanover, Onslow & Pender Counties+30%$2,794$3,632
130Coastal areas of Currituck, Dare, Hyde & Pamlico Counties+25%$1,516$1,895
140Eastern areas of Brunswick, Carteret, New Hanover, Onslow & Pender Counties+30%$1,947$2,531
150Coastal areas of Beaufort, Camden, Chowan, Craven, Jones, Pasquotank, Perquimans, Tyrrell & Washington Counties+15.5$1,278$1,476
160Western Coastal areas of Brunswick, Carteret, New Hanover, Onslow and Pender Counties+20%$1,375$1,650

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Windy Bill

The big problem here is that the vast majority of the public does not know what the North Carolina Rate Bureau is or its legal mandate. The name itself obfuscates (word chosen to cause confusion) the intent of the NCRB. The NCRB exists to further the interests of the insurance companies, not the public, and claims that it only wants to see insurance available in the state. Let’s look at wind insurance. Start with wind claims from Hurricanes Michael and Florence, insurance district by insurance district. Include dollars of wind policies paid in those districts. How little is paid out!… Read more »

Son of a beach

Ottoman, what are you talking about? Can’t you do better than repeat drumpf and fox nonsense? In this great country, companies have the God given right to get away with whatever they can. Can’t you go find a Tesla charging station to ice with yer pickemup?

ottoman

obviously global warming which is a hoax is already impacting our insurance. What if it was real?
And Meade, the rate of claims has nothing to do with your insurance, the insurers have insurance and they think whatever they want the rate to be and it is. NC cant seem to stop them…pay up!

Tater Tot

Merry Christmas homeowners! The strategy by the carrier here is to return each year with its filing seeking a reasonable increase in premium for the same coverage that you have had for a long time. The DOI has a schedule of acceptable rates which is shared with the carriers as their actuaries begin work each year to calculate the filing rates. The carriers will “accept” 15% increases from the DOI because next year they will “accept” a comparable increase. And then another. and another. Your coverage, of course, does not change. And if you’ve filed claims after storms you know… Read more »

Meade Gwinn

I live in Nags Head, and I’d like to see the claims for our area compared to our premiums. I think that we need to see the same information for the other areas to fully understand why area 110 consistently has the highest proposed rate increases.