North Carolina home insurance premium base rates increasing about 15% by mid-2026
A settlement has been reached by North Carolina's Insurance Department and the industry that sells homeowner policies
RALEIGH. N.C. — Base rates for North Carolina homeowners' insurance premiums will increase on average by about 15% by mid-2026 as part of a settlement reached by the state Insurance Department and the industry.
The agreement announced Friday by Commissioner Mike Causey contrasts with the January 2024 request by the North Carolina Rate Bureau, which represents insurance companies, seeking a 42.2% overall average increase.
Causey, an elected official who began his third term earlier this month, formally rejected the bureau's request last year. That led to a formal hearing that began in October and included multiple weeks of witnesses, evidence and arguments. The state Insurance Department said its witnesses would contend rates should be lowered or increased by less than 3%.
Except for the settlement, a hearing officer — in consultation with Causey — would have decided what the new rates should be. The Rate Bureau could have appealed that decision in court.
Causey said in a news release that the proposed rate increases “are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims."
The bureau attributed its large request to high inflation — particularly on building materials — combined with calamitous storms and “severely inadequate” premium rates to cover claims. The bureau’s requested increases had varied widely from just over 4% in parts of the mountains to over 99% in some beach areas.
The agreed-upon increases, carried out in two parts, will
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