Property owners in North Carolina can breathe a sigh of relief…for now


By Michelle Cassell
Managing Editor 

As reported earlier by TLR, Insurance Commissioner Mike Causey announced that the North Carolina Rate Bureau has completed a rate filing with the Department of Insurance, asking for an average statewide increase in homeowners insurance rates of 42 percent. The proposed increase for Orange and Chatham Counties is 25.1 percent.

According to the Department of Insurance’s press release on its website, the North Carolina Rate Bureau represents companies that write insurance policies in the state and is a separate entity from the North Carolina Department of Insurance.  The Rate Bureau was created by the General Assembly in 1977. Any insurance companies writing homeowners’ insurance or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau.

This rate filing followed the homeowners’ insurance rate filing that the Department of Insurance received from the North Carolina Rate Bureau in November 2020, where the Rate Bureau requested an overall average increase of 24.5%. That filing resulted in a settlement between Commissioner Causey and the Rate Bureau for an overall average rate increase of 7.9%.

In a February 6 press release, Commissioner Causey rejected the rate increase request, calling them “excessive and unfairly discriminatory”.  The Department of Insurance received more than 24,000 emailed comments on the proposal, with hundreds more policyholders commenting by mail. Scores more consumers spoke during a public comment forum.

“Homeowners were shocked with the high amount requested by the insurance companies, and so was I,” Commissioner Causey said. Commissioner Causey has set a hearing date for Oct. 7 at 10 a.m.  State law gives the Insurance Commissioner 45 days to issue an order once the hearing concludes. 

TLR will continue to provide updates on this topic.

Michelle Cassell is a seasoned reporter who has covered everything from crime to hurricanes and local politics to human interest over the course of 35 years. As managing editor, she hopes to encourage writers of a wide range of backgrounds and interests in TLR’s coverage of Southern Orange County news. 

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2 Comments on "Property owners in North Carolina can breathe a sigh of relief…for now"

  1. I feel it is wrong what these insurance companies did, before they approved the rate increase, they took people money knowing it wasn’t approved for that rate increase this is uneithics and that’s stealing people money that need to be return to the people. I want that money returned to me if not I will report them.

  2. The request made by the insurance companies to raise rates by 42% is CRIMINAL AND RIDICULOUS! Kudos to commissioner Causey for shutting them down. Thank you

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