NC homes face insurance rate hike
Updated On: Oct 15 2012 05:35:52 PM CDT
The North Carolina Rate Bureau has filed a homeowner’s rate increase request with the North Carolina Department of Insurance.
Homeowner policies would jump an average of about 18% across the state, but rates could jump 30% in coastal areas.
Johnny Robinson of Robinson and Stith Insurance in New Bern says the state has had a rate increase in four years.
“Insurance companies are looking for an increase to offset some of the coastal exposure. It’s one of the things we have on the coast. We saw it last year with Irene, all the Hurricane claims and wind damage that's the consequence of living here and frankly construction cost have gone up. They're making the insurance go up,” said Robinson.
According to the Insurance Journal rate increase is needed due to several factors including the rise of reinsurance, which is insurance for insurance companies. Rates have increased by 65%, causing a domino effect.
The final decision on whether the proposal goes through lies in the hands of State Insurance Commissioner Wayne Goodwin.
A proposed increase in homeowner’s insurance rates has the Town of Emerald Isle speaking out. Town commissioners have already adopted a resolution to fight the increase and hope resident will help fight the state’s final decision through a petition.
According to the North Carolina Insurance Commission, the department received a homeowners rate filing from the North Carolina Rate Bureau (unaffiliated) to increase the policy of homeowners across the state by an average of nearly 18%. While the rates along the coastal region, could jump up 30%.
Town officials complain that residents already pay the highest base rates for insurance in the state.
The current rate for $75,000 worth of coverage is around $1,500 a year. If the state has its way, people could be paying roughly $2,000 at the beginning of 2013.
Resident have until October 19th to voice their concerns to NC Insurance Commissioners.
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