Home insurers argue for a 42% average rate hike in North Carolina
A hearing has started in North Carolina over the insurance industry's request to raise homeowner premium rates by more than 42% on average
RALEIGH, N.C. — With many western North Carolina residents still lacking power and running water from Hurricane Helene, a hearing began Monday on the insurance industry's request to raise homeowner premium rates statewide by more than 42% on average.
A top lieutenant for Insurance Commissioner Mike Causey opened what's expected to be multiple weeks of witnesses, evidence and arguments by attorneys for the state Insurance Department and the North Carolina Rate Bureau, which represents insurance companies seeking the increase.
In over 2,000 pages of data filed last January, the Rate Bureau sought proposed increases varying widely from just over 4% in parts of the mountains to 99% in some beach areas. Proposed increases in and around big cities like Raleigh, Charlotte and Greensboro are roughly 40%.
Across 11 western counties that were hit hard by Helene, including Asheville's Buncombe County, the requested increase is 20.5%. The percentages are based on insurance payouts of years past and future claims projections.
After taking public comment, Causey rejected the request in February, prompting the hearing. In previous rounds of premium rate requests, the industry and the commissioner have negotiated settlements before a hearing. Before the last such hearing set for early 2022, they settled weeks earlier on a 7.9% average premium rate increase after the bureau had sought 24.5%.
This time, Causey told reporters Monday, “we were not able to come anywhere close, so that’s why we’re here today.”
When the hearing ends, the hearing officer, in consultation with Causey, will decide within
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