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Duplin and Lenoir counties are among those with the two highest proposed increases
By Ena Sellers, Duplin Journal
Insurance Commissioner Mike Causey announced in a recent press release that the North Carolina Rate Bureau is asking for an average statewide increase in homeowners’ insurance rates of 42.2%.
For Duplin County the proposed rate increase is a whooping 71.3%. If approved, this hike would become effective Aug. 1.
“It seems like it goes up a little bit every year,” said Curt Simpson of Simpson Real Estate Group. “I’ve seen it before where they made a big request and then it gets knocked back down … and it’s not nearly as bad as we thought, but most of everything is going up.”
In 2020, the NCRB requested an overall average rate increase of 24.5%, later settling for an overall ARI of 7.9%.
Factors that play a role in increased rates are inflation, risks, value, rebuild cost, and the number of claims.
“We have had some pretty hefty increases in the value of homes in the last few years, and that’s probably part of the reason for the increase… because a loss of a $300,000 home is going to affect the insurance company more than the loss of a $200,000 home. So, they are probably making up for some of that as well, in addition to all the claims that we have had due to the natural disasters that we have had,” said Simpson.
If approved, the rate increase would mean larger premiums for homeowners and expensive mortgages for those seeking to buy a home.
“From my perspective, anything that increases the cost of owning a house is going to affect the affordability of all homes,” said Simpson. “So, someone who may have been able to afford, say, a $300,000 house, if they have to throw in all these extra, whether it is taxes or insurance or whatever it is, then they may be looking at only $275,000 or $250,000 or something like that. It is going to affect how much they can afford. Their monthly payment is going to go up quite a bit if they escrow in their insurance costs, and most mortgage companies and lenders do that. It is going to affect what they can buy.”
“Material costs, labor costs, it’s all expensive now,” said Simpson. “We’re having a lot of growth in the housing industry here. We are paying the price, somewhat, for being in a desirable area now. Increased demand brings increased cost.”
The proposed increase rates vary from one county to another, with Duplin and Lenoir counties being among the highest proposed increases, right after the 99.4% proposed for beach areas in Brunswick, Carteret, New Hanover, Onslow, and Pender counties.
The public can comment on the proposed rate increase by attending the public comment forum on Jan. 22 from 10 a.m. to 4:30 p.m., at the Jim Long Hearing Room in the Albemarle Building, located at 325 N. Salisbury St., Raleigh, which will also be available online at https://ncgov.webex.com/ncgov/j.php?MTID=mb3fe10c8f69bbedd2aaece485915db7e
Public comments can be emailed to 2024Homeowners@ncdoi.gov by Feb. 2 or mailed to Kimberly W. Pearce, and addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201 by Feb. 2.
If Department of Insurance officials do not agree with the proposed rate increases, the rates will either be denied or negotiated with the North Carolina Rate Bureau.
