rules on dwelling property insurance rates
Commissioner Wayne Goodwin has issued an order pertaining to dwelling
fire and extended coverage insurance rates.
has ordered an overall rate decrease of 7.3 percent for dwelling
property fire rates and denied a request from the North Carolina Rate
Bureau to raise dwelling extended coverage rates by 36.1 percent.
North Carolina Rate Bureau—an independent organization that represents
all North Carolina property insurance companies— filed for the rate
changes in January, 2011.
fire policies are different from traditional homeowner’s insurance
policies in that they offer fewer coverage options and are sold to
properties that would not qualify for a standard homeowner’s policy.
Dwelling fire policies are offered to non-owner occupied residences,
including rental properties, investment properties, and other
properties that are not occupied full-time by the property owner. A
dwelling fire policy does not typically include liability coverage.
coverages would generally include coverage for damage to the physical
dwelling due to wind, hail, fire, smoke, riot, civil commotion, and
aircraft and vehicle damage.
increase in the rates for non-owner occupied dwellings could have had a
significant impact on the Outer Banks with its high number of rental
order comes after a hearing that began July 25 and ended Oct. 25.
Goodwin served as the hearing officer and considered testimony and
evidence from both the Rate Bureau and the Department of Insurance in
making his decision.
listening to all of the testimony, I found that the requested increase
in extended coverage rates for dwelling properties is not warranted. I
disapproved that request because it would have lead to excessive and
unfairly discriminatory rates,” Goodwin said. “Additionally, dwelling
policyholders will have the benefit of decreased fire rates.”
rates are to go into effect May 1, 2012.
order can be viewed on the Department of Insurance website at: