Photo by Mikhail Nilov
Commissioner Mike Causey manages to negotiate a 9.9% increase in Housing Policies
RALEIGH.- The North Carolina Department of Insurance has ended a legal dispute with the North Carolina Rate Bureau, by managing to negotiate a 9.9% increase in Housing Policies, which means 32.7 percentage points below what was requested by the rating office.
The North Carolina Rate Bureau – which represents businesses that write homeowners insurance in North Carolina and is not part of the North Carolina Department of Insurance – has proposed a general 42.6% statewide increase in rates for Housing Policies on August 18, 2022.
The agreed increase of 9.9%, average statewide figure, varies by region. The highest average premium increase in a given area of North Carolina would be $31.
With this agreement, a potentially costly administrative battle with the insurance companies has been avoided.
“I am pleased to announce that North Carolina homeowners will save more than $104 million a year in premium payments compared to what the North Carolina Rate Bureau had requested,” said Commissioner Causey.
The head of the Department of Insurance added that he is pleased with the fact that the institution he represents has avoided a long administrative legal battle that could have cost consumers time and money.
With this agreement, a hearing that was previously scheduled for April 17 has been cancelled.
It is important to clarify that a Housing Policy is not the same as a Homeowner’s Insurance Policy. Dwelling Policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties, and other properties that are not full-time owner-occupied.
The increase will take effect on new and renewed policies starting June 1
