Published February 5, 2024 at 11:00 AM PST | Reading time: 2 minutes
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
North Carolina homeowners could face massive double-digit increases in home insurance rates in 2024.
The North Carolina Rate Bureau, representing insurers statewide, has asked the North Carolina Department of Insurance to approve a statewide home insurance rate increase of 42.2%. The bureau also requested a rate increase of 99% for homeowners in coastal areas.
The average annual rate for $300,000 in dwelling coverage in North Carolina, with a $500 deductible, is $2,024, according to Insurify data. A 42% increase on this premium would drive annual rates to $2,874.
The bureau and department of insurance will now negotiate the rate increase.
One more cost for homeowners
The proposed rate hike comes at a difficult time for homeowners, who are already dealing with inflation and other rising costs. Add in an increase of 42% or 99% for home insurance, and some fear they won’t be able to afford the costs associated with their homes.
The Department of Insurance hosted a public comment period for the proposed rate hike throughout January. Residents who attended the public hearings largely spoke against the rate increase.
“Many people in [coastal] Pamlico County live on fixed incomes and will be priced out of their homes and face bankruptcy,” Minnesott Beach Town Commissioner Patrick O’Donnell said at one hearing. “This is not affordable.”
What’s next? A battleground for negotiation
While the bureau requested increases of 42.2% and 99%, it’s unlikely the department will approve those exact numbers. It’s more probable that smaller rate increases will ultimately reach homeowners.
In November 2020, the rate bureau requested a home insurance rate increase of 24.5%. But negotiations between the bureau and North Carolina Insurance Commissioner Mike Causey ultimately led to a rate increase of 7.9%.
For the Department of Insurance, these negotiations represent a balancing act as the department tries to keep rates affordable but also allow insurers to continue doing business in the state.
“What we do not want to happen is what is happening in some other states, and I’m thinking of Florida comes to mind, where insurance companies are leaving the state and consumers don’t have choices,” NCDOI spokesperson Barry Smith told WBTV.
Insurance companies have fled Florida due to costly payouts stemming from hurricane activity. As a result, Citizens Property Insurance Corporation, the insurer of last resort in Florida, is now the state’s largest policy writer.
While North Carolina doesn’t face such depletions in its insurance market, negotiations surrounding the proposed rate increase could be key to the future of the market.
Chris is Insurify’s Senior Editor for home insurance. He’s a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more. He is passionate about breaking down complex subject material to make important information accessible to everyone.
Chris began his career as a journalist, managing two weekly newspapers, then moving into marketing and content marketing roles. Before joining Insurify, Chris served as the content strategy manager at Siteimprove and as the content manager at Brandpoint, where he managed a team of content creators.
Away from work, Chris is an active hockey player and proud father of two rambunctious little girls. Chris holds a Bachelor’s degree in English with a minor in mass communications from the University of Minnesota.