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Natural disasters are becoming more frequent and causing unprecedented amounts of property damage. For instance, Hurricane Helene’s impact in North Carolina is estimated to cost nearly $60 billion. Consequently, home insurance companies have sought rate increases, and some are even exiting North Carolina despite the granted rate increase. At Don Allred Insurance in Burlington, NC, we closely monitor the situation to help our customers maintain their home insurance.
Understanding Insurance Rates in North Carolina
The North Carolina Rate Bureau (NCRB), a non-profit organization formed by the General Assembly of North Carolina, represents private insurers before the North Carolina Department of Insurance (NCDI) for various reasons, including rate increases.
Following Hurricane Helene, the NCRB requested a 42.2% rate increase for homeowners’ insurance from the NCDI. However, Insurance Commissioner Mike Causey denied the increase. After negotiations, both parties agreed to an average rate increase of 7.9%. The rate will not be finalized until the public has had sufficient time to comment.
Will Insurers Exit the State?
Insurance companies are grappling with increased home replacement costs, a higher number of homes affected by natural disasters, and insufficient income from existing policies. Consequently, many have ceased issuing policies for North Carolina homeowners, leaving them uninsured. The remaining companies will likely raise rates as much as possible to provide adequate coverage.
Contact Us for Assistance with Homeowners’ Insurance
At Don Allred Insurance in Burlington, NC, we’re monitoring these developments closely and working to help our customers retain their coverage. We understand the importance of maintaining a homeowners’ policy, especially for those with a mortgage. Contact us today for the latest news on this evolving insurance landscape and to learn what to expect moving forward.