The rate agreement prohibits the Rate Bureau from undertaking any efforts to raise rates again before June 2027. (Credit: nd700/Adobe Stock)
North Carolina homeowners saw their insurance premiums increase an average of 7.5% on June 1, with another 7.5% increase slotted for June 2026.
State Insurance Commissioner Mike Causey announced the rate increases in January.
According to the North Carolina Department of Insurance, the N.C. Rate Bureau filed a request to increase rates in January 2024. At that time, it proposed an average 42.2% increase, with a proposed 99.4% jump in some areas.
Insurers in the state have struggled in recent years as North Carolina has been struck by increasingly serious natural disasters. This includes Tropical Storm Helene, which caused tornadoes, historic flooding and landslides in Western North Carolina in September 2024.
Though the storm had weakened from hurricane status by the time it reached North Carolina, it still dropped up to 30 inches of rain in some areas and resulted in over 100 deaths.
The state was also heavily impacted by Hurricane Debby, which made landfall in Florida in August 2024. The remnants of this system continued over North Carolina, spawning ten tornadoes. This included one EF3-rated tornado. This twister combined with an EF3 tornado recorded during Tropical Storm Helene makes up half of just four tornadoes recorded in the state that were spawned by tropical systems.
Many of the affected communities are still recovering from these events, and insurers have pursued rate increases in the state to make up for an increase in disaster claims.
“The insurance companies wanted to raise our homeowners’ rates up to 99.4% in some areas and an average 42.2% statewide in a single year,” Commissioner Causey said in a release. “I fought for consumers and knocked them back to 7.5% increases over two years with a maximum of 35% in any territory. We consider this settlement a big win for both homeowners and North Carolina.”
Causey claims North Carolina homeowners will save around $777 million in premiums over the next two years with the current rate increase compared to what the Rate Bureau requested.
“These rates are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims,” Causey continued.
While allowing an average 15% increase over the next two years, the agreement prohibits the Rate Bureau from undertaking any efforts to raise rates again before June 2027.
A full list of North Carolina’s rate increases by territory can be found here.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.