Special to IFN

RALEIGH — The N.C. Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau over the Rate Bureau’s proposed rate increase for Mobile Home Fire (MH-F) polices and Mobile Home Casualty (MH-C) policies.

The settlement between the Department of Insurance and Rate Bureau calls for a statewide average increase of 11 percent per year over the next two years for MH-F policies and a statewide average increase of 8 percent for MH-C policies per year over the next two years.

The increases are significantly smaller than those requested by the Rate Bureau, which represents companies writing insurance policies in North Carolina and is not a part of the Department of Insurance. On April, 8, 2024, the insurance companies proposed an overall statewide average of 82.9 percent increase for MH-F policies and an overall statewide average of 49.9 percent increase for MH-C policies.

“I am happy to announce that North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested,” Insurance Commissioner Mike Causey said. “I am also glad the Department of Insurance and insurance companies have avoided a lengthy, expensive administrative legal battle.”

The first set of increases will take effect on new and renewed policies beginning on or after September 1. The second set of increases will take effect on August 31, 2026. The agreement prevents the insurance companies from seeking an increase before September 1, 2027.

The increases affect approximately 148,000 policyholders in North Carolina.

Unlike standard homeowners’ programs, both the MH-F and MH-C programs include flood coverage. The two programs are similar. However, the MH-F program provides coverage for a broader range of perils.

The agreement means a hearing on the issue scheduled for May 21 has been canceled.