Outer Banks home insurance policy rates to rise 9.9% in June

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Beach houses against the sunset in Kill Devil Hills. [Kari Pugh photo]

Home insurance rates on the Outer Banks and northeastern North Carolina will rise 9.9% on new and renewed policies from June 2022, while the insurance industry has agreed to do not submit any new requests until at least 2024.

State Insurance Commissioner Mike Causey announced on Nov. 23 that the North Carolina Department of Insurance has reached an agreement with the NC Rate Bureau, which represents insurance companies that write policies in North Carolina, following their request to increase rates by 24.5% on average statewide.

A hearing on the application scheduled for January 3, 2022 has been canceled.

The settlement places a 9.9 percent increase in 16 North Carolina’s insurance jurisdictions, including all coastal sections and the state’s largest urban counties. The rest of the territories will see an increase of 5.9 percent.

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Home insurance is for residents of the properties they own, as well as renters and condominiums. Housing policies are offered to residences that are not owner occupied, including rental properties, investment properties and other properties that are not full time owner occupied.

“I am pleased to report that North Carolina homeowners will save over $ 751 million in premium payments over what the NCRB requested,” Commissioner Causey said. “I am also happy that the Insurance Department avoided a lengthy administrative legal battle that could have cost consumers time and money.”

The increase will take effect on new and renewed policies as of June 1, 2022. As part of the agreement, the Tariff Office will not request further increase in homeowners’ rates until 2024 at the earliest, which means that this rate change will be in effect until at least 2024.

A public comment forum was held both in person and online in December 2020, with NCDOI receiving over 6,500 email comments on the proposed owner rate increase.

Members of the North Carolina Homeowners Alliance statewide urged Causey to reject the latest proposal submitted by the Rate Bureau in November 2020.

“The system in North Carolina puts enormous power in the hands of the insurance industry and the insurance commissioner. Consumer pressure had an overall impact on the bottom line, ”the Homeowners Alliance said in a statement released Monday.

The last NCRB homeowners rate filing was in December 2018 for an average increase of 17.4% statewide, and was traded at an average increase of 4%.

A request made in fall 2020 to increase housing policies is still pending, also with an average increase of 25 percent statewide. A hearing on this request is currently scheduled for January 18, 2022.

This story originally appeared on OBXToday.com. Read more local stories here.


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