December 19, 2014
Insurance Commissioner denies companies'
request for homeowners' rate increase
Commissioner Wayne Goodwin has ordered a zero percent statewide overall
average change in homeowners' insurance rates, effective June 1,
ordered rates vary by geographic territory and type of insurance. On
average, homeowners' insurance rates are to decrease by 0.3 percent,
renter’s insurance rates are to increase by 11.2 percent, and condo
owners' insurance rates are to increase by 8.1
There is good news in the commissioner's decision for Outer Banks homeowners.
the beach areas of Dare, Currituck, and Hyde counties, the insurance
companies had asked for a 35 percent increase in homeowners' policies.
Goodwin actually gave homeowners in these areas an average decrease of
the mainland areas of Dare, Currituck, Hyde, and Pamlico counties, the
companies asked for a 10 percent increase and got an average 12 percent
decision comes after Goodwin held a hearing to examine the insurance
companies’ request to raise overall average rates by 25.6 percent.
the hearing, experts from the N.C. Rate Bureau, on behalf of the
insurance companies, and experts from the N.C. Department of Insurance,
representing the interests of the public, presented their cases for and
against the rate hikes. It was the first hearing on homeowners
insurance rates since 1992.
rates I have ordered are the result of the most thorough inspection of
North Carolina homeowners insurance rates in more than 20 years,” said
Goodwin. “After considering all of the evidence and data available, I
have determined that no factors or events justified the excessive rates
requested by the insurance companies.”
insurance companies requested the increase last Jan. 3. There was
a public comment period in January, and a 12-day hearing from Oct.
Click here for a chart of the average increase or decrease by territory across the state.
You can read the entire 356-page report at: http://www.ncdoi.com/Media/Documents/12-19-14_HO_Order_Total.pdf