GOODWIN DENIES INSURERS REQUEST FOR HOMEOWNERS INCREASE

In December, Insurance Commissioner Wayne Goodwin has ordered a zero percent statewide overall average change in homeowners insurance rates, effective June 1, 2015. The ordered rates vary by geographic territory and type of insurance. On average, homeowners insurance rates are to decrease by 0.3 percent, renter’s insurance rates are to increase by 11.2 percent, and condo owner’s insurance rates are to increase by 8.1 percent.

In southeastern North Carolina, the western parts of New Hanover, Brunswick, Pender and Onslow Counties will see a -25.8% decrease. Unfortunately, the eastern part of these areas have been granted a 3.1% increase. However, that is well down from the 35% requested by the insurance companies. To see the rate changes by territory, http://www.ncdoi.com/Media/Documents/12-19-14_Homeowners_Rate_Changes_by_Territory.pdf

Of note is that some areas of the state will see homeowners insurance increases for the first time in many years. These areas include western portions of North Carolina represented by new House leadership. If angry constituents from the districts of Speaker-elect Tim Moore or Majority Leader Mike Hager flood their offices with phone calls once the new rates go into effect, it will be interesting to see if the issue of statewide equity progresses at the General Assembly.

As BASE noted at the public hearing in January, we maintain that any proposed increase for eastern North Carolina is excessive and unfairly discriminatory. We wholeheartedly applaud the Insurance Commissioner’s denial of the rate increases overall.

The decision comes after Goodwin held a hearing to examine the insurance companies’ request to raise overall average rates by 25.6 percent. During the hearing, experts from the N.C. Rate Bureau, on behalf of the insurance companies, and experts from the N.C. Department of Insurance, representing the interests of the public, presented their cases for and against the rate hikes. It was the first hearing on homeowners insurance rates since 1992.

UPDATE: RATE BUREAU TO APPEAL REJECTED RATE INCREASE

North Carolina Rate Bureau General Manager Ray Evans said Wednesday, January 14, the group representing nearly 100 companies selling homeowners policies is appealing its rejected bid to raise premiums by an average of 25 percent. The group plans to file notice by Friday.

Evans says the industry group expects it could take a year before the state Court of Appeals hears and makes a decision on whether the increases are justified. Evans says insurers might file a new rate increase request with the state Insurance Department. READ MORE