From higher premiums to nonrenewals (using drones): 3 NC homeowners share their stories

For nearly six decades, Joseph Lowman used Nationwide as his insurance provider.

Then last fall, the Ohio-based company, which writes about 7.3% of the state’s insurance policies, gave notice that it would not renew coverage for his Boone home based on aerial photos.

“I thought, this is crazy,” said the 80-year-old. “I’ve been a customer since I was 18 years old.”

As underwriters tighten guidelines, Lowman joins a growing number of homeowners across the state who have faced skyrocketing premiums and, in many cases, nonrenewals in recent years. Often with little recourse, they say.

In January, the N.C. Rate Bureau, which represents insurance companies in the state, requested a 42.2% rate increase . The state and the group are now trying to negotiate a new rate .

In recent months, The News & Observer has heard from dozens of homeowners who are struggling to navigate this tricky landscape. Here are some of their stories:

Joseph Lowman: Discolored roof, dropped coverage

Age : 80

Occupation : Retired professor

Location : Boone and Chapel Hill

Retired UNC-Chapel Hill professor Joseph Lowman, 79, lives with his wife, Betsy, 80, in a 1992 mountain home in Boone, about a three-hour drive west of Raleigh.

Last October, he was given 30-day notice from Ohio-based Nationwide that he would be dropped based on a single, grainy satellite photo of his roof. (The News & Observer published a similar story involving the same carrier in a separate case on May 28.)

Nationwide employed a third-party, Cape Analytics. The California-based firm employs “geospacial imagery, computer vision, and artificial intelligence” to gather property data for insurance underwriters, its website says.

The Lowmans’ roof had received a “poor” rating with “minor discoloration and streaking,” but no material degradation. “Nationwide insisted we pay to have it cleaned, but my wife and I refused,” he told The News & Observer. Instead, he had a local roofer inspect. “He certified in writing that the very small area of discoloration posed no risk to our roof whatsoever.”

The couple’s agent found another policy “with better coverage and less money,” he said.

Lowman now plans to cancel his two car policies with Nationwide that expired this month. He also plans to move over his policy on a second home in Chapel Hill.

Tamara Matheson: Less coverage now

Age : 41

Occupation : Nurse

Location : Mebane

First-time homeowner Tamara Matheson saw her insurance premiums almost triple in four years — from $500 in 2020 to $1,500 a year in 2024.

Then, in January, she got dropped by her carrier, Farmers’ Insurance, The News & Observer reported earlier this year.

In a letter dated Jan. 19, the company said her consent-to-rate premium had exceeded “250% of the N.C. Rate Bureau premium.”

Farmers gave Matheson a 60-day notice and said it would end her policy effective March 19. If she failed to obtain new coverage, her bank, Coastal Federal Credit Union, said it would purchase a policy for her, but it may be “significantly more expensive” than the insurance she can buy for herself.

Six months later, Matheson said she’s found another insurance provider, but it wasn’t without hassle. At one point, she juggled three active policies before locking in her final choice.

She pays less now — around $906 a year — but it comes with less coverage, she said. “I now have no shed insurance, but it covers more of the house value.”

Janet Rupert: ‘Very few options’

Age : 71

Occupation : Retired accountant

Location : Chapel Hill

Retired accountant Janet Rupert, who lives in Chapel Hill, said she was shocked when she received her insurance bill this year.

In seven years, her premiums with Pennsylvania-based Erie Insurance jumped by almost 60% — from $1,722 in 2018 to $2,756 in 2024.

“I don’t get it. We’ve never filed a claim,” the 71-year-old said. “We’ve been with this company for over 15 years.”

Rupert wondered if she was being penalized for hurricane-related losses on the coast. But her agent told her otherwise. The agent blamed higher premiums on rising costs of materials and labor.

“Tell me about it,” she quipped. Coupled with rising property taxes , Rupert said it’s getting harder to absorb rising housing costs, especially on a fixed income.

“We call our agents, they give us the party line. We suck it up, raise our deductibles or look elsewhere,” she said.

In the end, she raised her deductible — from $1,000 to $2,500 — to cut costs to $2,131. But she remains dissatisfied.

“We’re getting to the point where we have very few options,” she said.

NC Reality Check is an N&O series holding those in power accountable and shining a light on public issues that affect the Triangle or North Carolina. Have a suggestion for a future story? Email realitycheck@newsobserver.com