Mike Causey, the North Carolina the state Insurance commissioner recently rejected the N.C. Rate Bureau's 42.2% proposed hike in homeowners' insurance rates.
Causey called the bureau's proposed increase "excessive and unfairly discriminatory," in his rejection. "Homeowners were shocked with the high amount requested by the insurance companies, and so was I," he said in a recent Winston-Salem Journal article.
The N.C. Rate Bureau represents insurance companies that write policies in the state and is not part of the North Carolina Insurance Department. The Rate Bureau requests and negotiates rate increases with the Insurance Department.
Insurance commissioner Causey has set a hearing for 10 a.m. Oct. 7 to deal with the bureau's rate request. The original request by the Rate Bureau included an Aug. 1 effective date.
The rate increase requests are typically by region. The Rate Bureau requested rate increases that range from 4.3% in the mountain counties, all the way up to 99.4% in more coastal locations.
Homeowners in the Triad and northwest N.C. could see their rates increase between 20.5% and 41.3% if the Insurance Department approves the Bureau's latest increase request.
"I haven't seen the evidence to justify such a drastic rate increase on North Carolina consumers," Causey said in a recent statement. "North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review,” he continued.
The Rate Bureau is requesting a 36.6% rate hike for homeowners in Winston-Salem, Greensboro, Alamance, Davie, Forsyth, Guilford, Rockingham, Stokes, and Surry counties.
This is the largest rate increase for the urban areas of the Triad since 2009.
The remaining requested increases are:

  • 41.3% for Wilkes County
  • 25.2% for Davidson and Randolph counties
  • 22.3% for Yadkin County
  • 20.5% for Alleghany, Ashe and Watauga counties.

The proposed rate increases are not making local realtors happy. The N.C. Realtors advocacy group said it is "raising the alarm to consumers to ensure this significant rate hike is known before the state-required public response period ends in January."
"The Rate Bureau's extreme rate hike request of 42% average statewide is a gut-punch to homeowners and homebuyers when they're already facing challenges affording homes amid record high mortgage rates and property tax increases," association president Tony Harrington said in the recent Winston-Salem Journal article.
"The NCR calls on the Insurance commissioner to reject the insurance companies' unreasonable request - and to take a stand on behalf of his constituents across the state."