Insurance Commissioner Mike Causey today announced that the N.C. Department of Insurance has settled its legal dispute with North Carolina insurance companies over a dwelling rate increase.
Commissioner Causey negotiated an average statewide increase of 8%, which is 42.6 percentage points lower than the 50.6% increase requested by the N.C. Rate Bureau.
The N.C. Rate Bureau, which is not a part of the N.C. Department of Insurance, represents all property and casualty insurance companies writing premiums in North Carolina.
The new rates will take effect on Nov. 1.
The settlement means that a July 22 hearing on the dispute has been canceled.
“I am happy that we were able to save North Carolina consumers more than $151.7 million per year in this rate case over what the insurance companies requested,” Commissioner Causey said. “I’m also glad that we were able to avert a potentially lengthy and costly hearing on this case. Our top-notch legal, actuarial and property and casualty experts at the Department worked diligently to help protect the consumers’ pocketbooks by limiting this increase to 8%.”
Dwelling insurance is different from homeowners’ insurance. Dwelling policies are primarily offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not the property owner’s primary residence.
The Rate Bureau filed its proposed increase on July 13, 2023.
The negotiated 8% increase is an average statewide figure, which varies by territory.