Settlement negotiated for dwelling rate request
Published 11:30 am Sunday, February 5, 2023
The North Carolina Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau regarding the bureau’s proposed 42.6% dwelling rate increase, averting a potentially costly administrative battle with insurance companies, noted a press release from NCDOI.
After studying the data, Insurance Commissioner Mike Causey negotiated a statewide average increase of 9.9%, which is 32.7 percentage points lower than the Rate Bureau requested.
“I am happy to announce that North Carolina homeowners will save more than $104 million a year in premium payments compared to what the Rate Bureau had requested,” said Causey. “I am also pleased that the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
The settlement means the hearing that was previously scheduled for April 17 has been canceled.
Dwelling insurance is not the same thing as homeowners’ insurance. Dwelling policies are primarily offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner.
The Rate Bureau, which represents companies writing property insurance in North Carolina and is not a part of the N.C. Department of Insurance, proposed a 42.6% statewide overall increase in dwelling insurance rates on Aug. 18, 2022. The negotiated 9.9% increase is an average statewide figure, which varies by territory. The highest average premium increase in any North Carolina territory would be $31.
The increase will take effect on new and renewed policies beginning on or after June 1.