Friday, June 25, 2021

Commissioner postpones homeowners’ insurance rate hearing

RALEIGH
Jun 25, 2021

The hearing scheduled for the insurance industry’s proposed statewide average 24.5% homeowners’ insurance rate increase has been extended six weeks from Sept. 20 to Nov.1. Insurance Commissioner Mike Causey says he needs the additional time to review the documents filed by the North Carolina Rate Bureau.

“There is a pervasive lack of documentation, explanation and justification of both the data used, as well as the procedures and methodologies used in the filing,” Commissioner Causey said. “The proposed rates appear to be excessive and unfairly discriminatory, and I want more time to study the data to ensure our consumers are treated fairly.”

The hearing will begin at 10 a.m. in the Second Floor Hearing Room in the Albemarle Building, 325 N. Salisbury St., Raleigh.

The hearing will be held unless the N.C. Department of Insurance and the N.C. Rate Bureau are able to negotiate a settlement before that date. The Department of Insurance and the NCRB can settle the proposed rate increase at any time during litigation.

The NCRB, which is not a part of the N.C. Department of Insurance, represents insurers that write the state’s homeowners policies. The NCRB also represents automobile and workers’ compensation insurance companies.

The NCRB filed the average 24.5% homeowners increase Nov. 9, 2020. The filing covers insurance for residential property, tenants and condominiums at varying rates around the state. 

The last NCRB homeowners rate filing was in 2018 that resulted in a settlement of 4%, which took effect May 1, 2020.

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