The N.C. Department of Insurance has settled its legal dispute with the N.C. Rate Bureau over mobile homeowners’ insurance rates, saving policyholders millions of dollars in premiums compared to what had been proposed by the insurance industry.
“While no increase in premiums is good news to consumers, I am glad we were able to negotiate a settlement that saves consumers more than $10 million a year in premium payments compared to the original request from the Rate Bureau,” Insurance Commissioner Mike Causey said. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers money.”
On Feb. 26, the Rate Bureau, which represents companies writing property insurance in North Carolina and is not a part of the N.C. Department of Insurance, proposed an overall statewide average 24.9% increase for MH-F (Fire) policies and an overall statewide average of 11.3% increase for MH-C (Casualty) policies.
The settlement resulted in a much smaller overall statewide increase of 12.5% for MH-F and 4.7% for MH-C.
Unlike standard homeowners’ programs, both MH-F and MH-C programs include flood coverage. The two mobile home insurance programs are similar. However, the MH-F program provides coverage for a broader range of perils.
The settlement means that a hearing on the dispute scheduled for Jan. 18, 2022, has been canceled.
The increase will take effect on new and renewed policies beginning on or after May 1, 2022.