RALEIGH, N.C. — North Carolina's top insurance regulator has denied an industry request to raise homeowners' insurance premiums by an average of 42% — and to almost double them in parts of coastal counties — saying Tuesday that “almost nobody” who weighed in agreed with the proposed increase.
Insurance Commissioner Mike Causey, in his second term and facing two challengers in the March 5 Republican primary, also set a hearing for October to evaluate the request and determine what is reasonable.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
"The Department of Insurance and I received more than 25,000 letters, emails, and sometimes phone calls from the people of North Carolina, saying 'no, please don't raise our homeowners insurance,'" Causey told WCNC Charlotte. "After reviewing the filing, it was my opinion that the rights requested were excessive and unfairly discriminatory. So I said 'no.'"
An executive with the North Carolina Rate Bureau, a state-created entity representing insurance companies, said the industry has to account for inflation — which affects building material costs — climate change and the increased frequency and severity of major storms.
“The very real cost of insuring homes in North Carolina has impacted what we all pay for insurance,” Chief Operating Officer Jarred Chappell wrote in an email. “Our bureau is responsible for collecting data on claims and that data shows rates need to increase in order to maintain a healthy market in the state.”
The average increases sought by the bureau range from just over 4% in parts of the mountains to 99% in the beach areas within Brunswick, Carteret, New Hanover, Onslow and Pender counties. Proposed increases in the state's largest cities in the Piedmont were roughly 40%.
Causey said he also empathizes with the homeowners’ insurance industry. He said one insurance agent told him that $112 in claims were being issued for every $100 in premiums taken in. But he said the industry must do more to tighten its belt and address insurance fraud.
Causey said he'll preside over an evidentiary hearing starting Oct. 7, and if he finds the proposed rates excessive, he can then issue an order that sets new rates. That order could be appealed. And Chappell noted Tuesday that many rate negotiations over the years have been settled before the hearing. During the last round on homeowners’ policies, the bureau sought an overall average increase of 24.5% before a November 2021 settlement resulted in a 7.9% average increase.
“I’m willing to listen if they want to come back with some numbers that are more reasonable to the people, because the majority of people can’t stand this,” Causey said.
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.