|June 29, 2018
Rental Owners Will Pay About 4.8 Percent More for Insurance
By Rob Morris
The Outer Banks Voice
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
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
The new rate will go into effect Feb. 1, 2019.