Homeowners Insurance Rates to Change May 1
December 31, 2008 by Gary Sides
Insurance Commissioner Jim Long signed a settlement agreement with homeowners insurance companies Thursday, allowing rates to increase by an average of 4.05 percent.
The North Carolina Rate Bureau, which represents all of the homeowners insurance companies doing business in the state, had requested a 19.5 percent average rate increase.
Rate changes will vary by territory. Some coastal territories could see increases by as much as 29% while western areas could actually decrease. The changes will take effect May 1, 2009.
“There has been a lot of speculation surrounding this homeowners rate filing, but I feel that we’ve reached a settlement that is fair to both consumers and insurance companies in North Carolina,” Long said in a statement. “No one likes to see their insurance rates go up, but the industry made a strong case for allowing some increases this year. The silver lining is that most consumers won’t see nearly the increases that were initially proposed.”
The settlement also realigns several insurance territories along the coast so that homeowners who live farther inland pay less for insurance. Long said that makes sense because these homes have less exposure to the impact of a hurricane.
The increase will be the first since May 2007, when homeowners insurance rates went up 5.4 percent.
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