Insurance Commissioner Wayne Goodwin has ordered a zero percent statewide overall average change in homeowners’ insurance rates, effective June 1, 2015.
The 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 percent.
There is good news in the commissioner’s decision for Outer Banks homeowners.
In 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 9 percent.
In the mainland areas of Dare, Currituck, Hyde, and Pamlico counties, the companies asked for a 10 percent increase and got an average 12 percent decrease.
The decision comes after Goodwin held a hearing to examine the insurance companies’ request to raise overall average rates by 25.6 percent.
During 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.
“The 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.”
The insurance companies requested the increase last Jan. 3. There was a public comment period in January, and a 12-day hearing from Oct. 20-Nov. 12.
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
