North Carolina Dwelling Insurance Rates: Proposed Increase and Public Hearing
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north Carolina insurance regulators are preparing for a public hearing to review a proposed 68.3% average increase in dwelling insurance rates requested by the North Carolina Rate Bureau. The hearing,scheduled for May 4,2026,comes after Insurance Commissioner Mike Causey expressed disagreement with the proposed hike,initiating a process outlined by state law. This proposed increase impacts landlords and owners of non-owner-occupied properties, potentially leading to significant premium increases.
Understanding Dwelling Insurance
Dwelling insurance, frequently enough confused with homeowners insurance, specifically covers properties that are not the primary residence of the owner. This includes rental homes, investment properties, and non-owner-occupied buildings with four or fewer units. North Carolina Department of Insurance provides resources for understanding different types of insurance coverage available to residents.
The Proposed Rate Increase
The North carolina Rate Bureau filed the rate increase request on October 30, 2024. The proposed 68.3% average increase would affect policies covering fire and extended coverage, with rates varying across the state.If approved, many policyholders could see substantial double-digit percentage increases in their premiums.
Recent Rate History & Negotiations
This isn’t the first recent attempt to raise dwelling insurance rates in North Carolina. In July 2023, the Rate Bureau requested a 50.6% average statewide increase. That proposal was ultimately settled,resulting in an average 8% increase that took effect on November 1,2024. WRAL reported on the details of the previous rate settlement.
Currently, negotiations between the Department of Insurance and the Rate Bureau are ongoing, and a settlement could potentially avert the need for a full hearing.
The Hearing Process & Potential Outcomes
The public hearing is set to begin at 10 a.m. on May 4, 2026, in the second-floor hearing room at the Department of Insurance, located at 3200 Beechleaf Court in Raleigh.
If the hearing proceeds, state law dictates that Insurance Commissioner Causey has 45 days after its conclusion to issue a final order. The rate Bureau then has the right to appeal this decision to the North Carolina Court of Appeals, with a possible further appeal to the North Carolina Supreme Court.
Impact on Policyholders
The proposed rate increase has the potential to significantly impact landlords and owners of rental properties across North Carolina. Increased insurance costs could lead to higher rental rates or reduced profitability for property owners. Policyholders are encouraged to stay informed about the hearing and its potential outcomes.
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