Insurance Commissioner Mike Causey announced today that the N.C. Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau on its proposed 24.5% homeowners insurance rate increase, averting a potentially costly administrative battle with insurance companies. Commissioner Causey and the Rate Bureau settled on an average 7.9% statewide increase, which is a 16.6% lower rate than the Rate Bureau requested. This means the hearing scheduled for Jan. 3, 2022, is canceled.
“I am happy to announce that North Carolina Homeowners will save over $751 million in premium payments compared to what the NCRB had requested,” Commissioner Causey said. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
On November 9, 2020, 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 of 24.5%. After studying the data, Commissioner Causey negotiated a settlement for a much smaller overall statewide increase of 7.9%.
The increase will take effect on new and renewed policies beginning on or after June 1, 2022. As part of the agreement, the Rate Bureau will not seek another homeowners rate increase until 2024 at the earliest, meaning this rate change will be in effect until at least 2024.