The North Carolina Rate Bureau kicked off the new year by asking state officials for a major increase in homeowner insurance policy rates, but the amount would vary widely depending upon where residents live.
Insurers are asking for a 42% increase, but that’s a statewide average.
In Guilford and Forsyth counties, the increase would be about 36% more than the current rate. If you have a beach home in Brunswick, Carteret, New Hanover, Onslow or Pender counties, that rate would almost double. But your neighbor with a mountain home in the High Country might see a smaller increase of just over 20%.
It’s all a reflection of climate change, says Jason Tyson, a spokesman for the North Carolina Department of Insurance.
“The biggest single factor of this is storms," he says. "And when I talk about storms mostly here in North Carolina we’re talking about hurricanes. The industry is looking at what is the expectation of the average hurricane loss in a year and how it will affect each territory.”
Tyson says other factors including cost of materials and inflation also factored into the request for an increase.
He says the department wants residents to take advantage of opportunities to comment on the increase proposal. That includes a virtual hearing set for January 22.
The rate bureau, a nonprofit established by the General Assembly to represent the insurance industry, last asked for a homeowner’s insurance rate increase in 2020. It sought an average increase of 25%. The state Department of Insurance settled for an increase of about 8%.