NC Homeowner Insurance Companies Request Rate Increase of 68.7% for Coastal Currituck and Dare.
The NC Rate Bureau, on behalf of insurance companies, has filed a notice to the NC Department of Insurance requesting a rate increase. While the rate increase averages 18.7% across the state, it is a whopping 68.7% for the Outer Banks or coastal Dare and Currituck counties.
The last insurance rate increase in coastal OBX was in 2012 where rates were increased 7% after negotiation. A rate increase request in 2014 was declined.
As reported on WRAL.com, Willo Kelly, who represents Outer Banks realtors, homebuilders, and the coastal advocacy group, NC 20, said rates near the coast are already double or triple the rates in the Piedmont, and she’s afraid working people will be driven out of their homes by such a large increase.
Kelly pointed out that coastal property owners have wind and flood insurance policies in addition to the standard homeowners’ policy. “So, when you add all of your insurance up, it can be more than your mortgage payment,” she said.
Rep. Bob Muller agrees the rate increase in unwarranted. “We’ve been paying high premiums ever since [Fran] with no great substantial losses, so we think we’ve paid our share of that,” said Muller. “We want the commission to look at that and see if the increase really is warranted to be that high.”
It is up to the NC Department of Insurance to negotiate a rate within 50 days. If the Department of Insurance and the Rate Bureau can’t come to agreement, then there is a hearing with the Insurance Commission. Any ruling by the Insurance Commissioner, Mike Causey, could then be appealed with the courts.
The public is encouraged to email public comments by Dec. 29, 2017. Send to 2017HomeInsurance@ncdoi.gov. Written public comments can be mailed to Tricia Ford by Dec. 29, 2017, and addressed to 1201 Mail Service Center, Raleigh, NC 27699-1201.
Eillu is committed to keeping you informed and helping protect your Outer Banks real estate interests. Contact an Eillu Agent to discuss your real estate questions or call 252-491-9999.