The beginning of June brings the start of hurricane season. When these disastrous few months begin, insurance companies often raise their prices. According to Live Insurance News, North Carolina has already seen an increase of 7.5%, which works out an average increase of $243 a year.

Unfortunately for residents of the Tar Heel state, there is no end in sight for these upticks in price. In January of last year, North Carolina agreed to raise rates by 7.5% in 2025 as part of a settlement which also included an additional 7.5% increase in June of next year. In addition to the already significant price increases, state residents also saw their dwelling policies rise by an average of 8%.

It’s no surprise that climate change is hitting coastal areas especially hard. The extreme weather caused by the burning of fossil fuels is partially to blame for the rising insurance rates.

Climate change is even impacting places that used to be considered havens. Asheville, a previous ‘climate haven’, was partially destroyed by Hurricane Helene last September. Months later, the town is still rebuilding.

As the costs of rebuilding increase, so do insurance premiums. Unfortunately, North Carolina isn’t alone in this issue.

Nationwide, insurance companies are raising rates or, in extreme cases, pulling out of high-risk areas entirely. Homeowners who have managed to keep their coverage often have trouble getting claims approved and extending disaster recovery times which is causing continued disruption to economies.

While North Carolinians are undoubtedly paying more for their premiums, it could have been worse. According to Live Insurance News, the original requested premium increase from insurers was to raise prices by 42.2%.

Luckily, the state doesn’t have a market-driven system for insurance. Instead, the North Carolina Rate Bureau finds and analyzes data to support any proposed insurance increases. This data is then given to the North Carolina Department of Insurance. If the insurer gets consent from the policyholder, then they are allowed to raise the rates higher than the approved rate increase. This method is called “consent to rate

The Department of Insurance managed to negotiate a better deal, spreading the price hikes over two years. However, homeowners near the coast will likely see additional surcharges. While it’s not as bad as it could have been, the price increases may still leave homeowners struggling to keep up.