Bertie County residents can breathe a sigh of relief in regards to a proposed homeowners insurance rate increase, at least until October.
N.C. Insurance Commissioner Mike Causey has rejected the insurance companies 42.2 percent proposed average increase to North Carolina homeowners. Causey called the rate hike “excessive and unfairly discriminatory.” The commissioner has set a hearing at 10 a.m. on Oct. 7 to address the increase.
“I haven’t seen the evidence to justify such a drastic rate increase on North Carolina consumers,” Causey explained.
In January, the North Carolina Rate Bureau (NCRB) filed a homeowners insurance rate increase request with the N.C. Department of Insurance. The Rate Bureau asked for an average statewide increase in homeowners’ insurance rates of 42.2 percent. The bureau also requested the rates to become effective Aug. 1.
While the average statewide increase would have been 42.2 percent, Bertie County homeowners would have seen a 57.8 percent increase in their annual homeowners insurance premiums. Residents would be paying the third highest insurance rates in the state, following coastal beach areas. For renters, these increases could also affect local rent rates.
Proposed rates by the NCRB on behalf of the insurance companies writing policies in the state range from 4.3 percent in some of the mountain counties to 99.4 percent in some of the beach areas.
Causey scheduled a public comment session in January and received numerous comments opposing the hike.
“The Department of Insurance has received more than 24,000 emailed comments on this proposal, with hundreds more policyholders commenting by mail. Scores more consumers spoke during a public comment forum. North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review,” Causey said.
“Homeowners were shocked with the high amount requested by the insurance companies, and so was I,” he added.
Of the approximate 9,000 occupied housing units in Bertie County, 74.9 percent are owner-occupied, while 25.1 percent have renters living in them.
“The increase would be devastating to renters,” said Bertie County Commissioner Ron Roberson.
Bertie County Commission Chair John Trent voiced his concerns in January upon hearing the news originally.
“It’s absolute insanity. This definitely will have an effect on the housing market. More importantly for Bertie County, we have a very large rental base. Rents will increase dramatically causing an economic burden that will be passed on to the consumer,” said Trent.
Roberson was equally disturbed, however, both commissioners are encouraged by the October hearing. Officials are confident the increase will be considerably less than requested.
The last rate increase request by the NCRB was November 2020. At that time the requested increase was 24.5 percent. The filing resulted in a settlement between Causey and the rate bureau of an overall average 7.9 percent increase.
The NCRB is not a part of the Department of Insurance. The Rate Bureau was created by the General Assembly in 1977. Any insurance companies writing homeowners’ insurance or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau.
After the Oct. 7 hearing, state law gives the Insurance Commissioner 45 days to issue an order once the hearing concludes.
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