2008 Homeowners Insurance Rate Filing

In preparation for what will be a critical issue during the 2009 General Assembly session, BASE staff has been attending the meetings of the Joint Select Committee on the Potential Impact of Major Hurricanes on the NC Insurance Industry. The Committee met in Raleigh for the third time yesterday, hearing from speakers including NCHBA’s Robert Privott, in addition to several representatives from the Insurance Industry.
In his comments yesterday to the Joint Select Committee, North Carolina Rate Bureau General Manager Ray Evans indicated that on Monday the Rate Bureau will be delivering to the Insurance Commissioner their Homeowner filing for 2008. Mr. Evans indicated that NCRB was proposing an average 19.5% increase overall statewide. Included in this proposed request are 32-51% increases for beach properties, 42-69% increases for coastal properties and 1.2%-22.5% increases for the remainder of properties in NC.
An amended map showing the beach, coastal areas was not available. WE WANTED TO GIVE YOU ADVANCED NOTICE OF THIS ISSUE—BUT UNDERSTAND THE INFORMATION IS BASED ON COMMENTS FROM THE NCRB GENERAL MANAGER. As with all proposals of this type, the rates will have to go through the negotiation process at the Department of Insurance before they go into effect on May 1, 2009.

In the meantime, BASE staff is working to get additional “official” information on this subject including the formal proposal and associated maps.