Property insurance rates will be be heading up next spring after a deal was struck between state regulators and insurance companies, with a nearly ten percent increase coming for Outer Banks homeowners.
The N.C. Department of Insurance announced negotiations had been completed with the N.C. Rate Bureau on a request to raise rates for both homeowner and mobile home policies.
Beach areas of Dare, Hyde and Currituck will see a 9.8 percent increase, while mainland sections will rise by 4.5 percent.
Based on a premium costing an average of $2,400 per year in the Outer Banks sections of the three counties, the price of the same policy will be going up $235.20 starting May 1, 2020.
The rest of northeastern North Carolina will be hit with a 1.5-to-2.5 percent hike. All of North Carolina will have their rates increasing, except five counties in the southwest mountains where rates will be drop 0.1 percent.
“I am happy to announce that North Carolina homeowners will save nearly $285 million a year in premium payments compared to what the NCRB had requested,” state Insurance Commissioner Mike Causey said. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
The rate bureau had sought as much as a 30 percent increase for Outer Banks homeowner polices, which is the maximum allowed under current state regulations. A hearing in Raleigh on the filing was scheduled for Friday.
Insurance for mobile homes will going up by a statewide average of 4.3 percent for MH-C policies 6.6 percent for MH-F policies.
The rate bureau has asked for to raise rates for rental property wind and fire coverage beginning next summer, with wind policy increases along the Outer Banks of the maximum 30 percent.
That request was submitted in August and is under review by the state Department of Insurance.