Special to IFN

RALEIGH — The N.C. Department of Insurance has ended its legal dispute with insurance companies about their proposed homeowners’ insurance rate increase filed in January 2024.

The N.C. Rate Bureau originally requested an average 42.2 percent increase last year, with proposed increases of up to 99.4 percent in some areas.

Under the agreement signed by Commissioner Mike Causey and the Rate Bureau, the average statewide base rate will increase by 7.5 percent on June 1, 2025, and 7.5 percent on June 1, 2026. The Rate Bureau is not a part of the Department of Insurance and represents homeowners’ insurance companies in North Carolina.

“The insurance companies wanted to raise our homeowners’ rates up to 99.4 percent in some areas and an average 42.2 percent statewide in a single year,” Causey said. “I fought for consumers and knocked them back to 7.5 percent increases over two years with a maximum of 35 percent in any territory. We consider this settlement a big win for both homeowners and North Carolina.”

In addition, the agreement prohibits the Rate Bureau from undertaking an effort to increase rates again before June 1, 2027.

“North Carolina homeowners will save approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested. This also protects homeowners from future base rate increase requests until June 2027,” said Causey. “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.”