June 29, 2018

Rental Owners Will Pay About 4.8 Percent More for Insurance

By Rob Morris
The Outer Banks Voice

Owners of rental properties will pay an average statewide of 4.8 percent more for dwelling insurance under an agreement announced Wednesday by the North Carolina Department of Insurance.

In coastal Dare, Hyde and Curriuck counties, rate increases will run closer to 9 percent for buildings when wind and hail coverage are factored in.

The North Carolina Rate Bureau, which represents insurance companies, had asked for an 18.9 percent increase in February.

“This settlement means consumers will save approximately $41 million a year compared to what they would have paid had the Rate Bureau’s request been approved,” Insurance Commissioner Mike Causey said in a statement. “The agreement also keeps insurance companies on firm financial footing, which is good for North Carolina’s economy.”

Typically, the rate bureau asks for a large rate increase, the commissioner disputes it and sets a hearing, then takes credit for a settlement at a significantly lower rate. That happened with rate increases for primary residences earlier this year.

In April, Causey dialed back a request for a homeowners rate increase that could have pushed coastal policy costs up by as much as 25 percent. Rates will vary by territory from an average of 4.8 percent to a maximum of 5.5 percent statewide.

This week’s settlement applies to polices for non-owner-occupied residences of no more than four units, including rental and investment properties.

The new rate will go into effect Feb. 1, 2019.

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