October 11, 2012

UPDATE: Requested insurance rate hike is 30 percent on the coast

On Oct. 1, the Department of Insurance received a rate filing to increase insurance premiums from the North Carolina Rate Bureau.

The Bureau, which represents property insurance companies doing businesses in North Carolina, filed the rate increase for homeowners’, tenant and condominium insurance.

The average increase statewide is 17.7 percent, but for the beach and mainland areas of 18 North Carolina coastal counties, the requested increase is 30 percent, the highest increase in the rate request.

North Carolina is divided into territories for rate filings.

Proposed rate increase for homeowners’ insurance in the coastal county territories is shown as:

  • Territory 7: Currituck, Dare and Hyde - Barrier Islands: 30 percent.
  • Territory 8: Brunswick, Carteret, New Hanover, Onslow, Pender - Coastal Areas: 30 percent.
  • Territory 48: Currituck, Dare, Hyde, Pamlico - mainland areas: 30 percent.
  • Territory 49: Beaufort, Camden, Chowan, Craven, Jones, Pasquotank, Perquimans, Tyrrell, Washington: 30 percent.
  • Territory 52: Brunswick, Carteret, New Hanover, Onslow, Pender - mainland areas: 30 percent.

Also proposed for a 30 percent increase are three south-central North Carolina counties of Anson, Richmond and Montgomery designated at Territory 44.

The lowest proposed homeowners’ rate increase is Territory 36 Greensboro at 1.2 percent.

In the rate filing, the Bureau reports that a 30 percent rate increase in homeowners’ insurance on $75,000 policy coverage for a barrier island home in Currituck, Dare and Hyde would mean moving from a base rate of $1,379 to $1,793 or a premium increase of $414.

In Territory 48 on the mainland areas of Currituck, Dare, Hyde and Pamlico counties, the current base rate on $75,000 of homeowners, coverage is $987. Under the filing, the base rate for $75,000 in coverage would increase to $1,283, or a $296 increase.

A public comment session is set for Oct. 17 from 9:30 a.m. to 4 p.m. in the Jim Long Hearing Room of the Dobbs Building, 430 N. Salisbury St., Raleigh.

The deadline for submitting written comments is Oct. 19. Written public comments should be mailed to: NCDOI, Attn: Bob Mack, Property & Casualty Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; or emailed to [email protected].
The filing is available for public review on the department’s website. To view the entire filing, go to http://pserff.ncdoi.net/pc.html and enter the Serff Tracking Number NCRI-128708881.

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