NDOI Reaches Settlement On Dwelling Insurance Rates

NDOI Reaches Settlement On Dwelling Insurance Rates

NDOI Reaches Settlement On Dwelling Insurance Rates Featured

By / Local News / Tuesday, 07 January 2020 15:53

RALEIGH, N.C. : January 6th, 2020 - The North Carolina Department of Insurance (NCDOI) announced a negotiated overall statewide rate of 4% for dwelling rate insurance on January 6th with the North Carolina Rate Bureau (NCRB). NCDOI also says  a rate of 0% increase for fire coverage and a statewide average 5.3% increase for extended (wind) coverage was also negotiated.

The NCRB originally requested a statewide average increase for dwelling insurance of 19.2% and a 4.6% increase in fire coverage and a 24.3% increase in extended (wind) coverage.

According to Barry Smith with NCDOI, "A hearing on a proposal by the North Carolina Rate Bureau to increase dwelling insurance rates, scheduled for Jan. 13, has been canceled after the NCRB reached a settlement with the N.C. Department of Insurance. The NCRB, which is not a part of the N.C. Department of Insurance but represents companies that write insurance policies in the state, had requested a statewide average rate increase of 19.2%, varying by territory."

In a release issued by Smith, Insurance Commissioner Mike Causey rejected that increase, saying that the proposed rate hike was excessive. As a result, Commissioner Causey negotiated a 15-percentage point reduction of the proposed increase to an overall statewide rate of 4%.

Smith explained, "The NCRB had also requested a 4.6% increase in fire coverage and a 24.3% increase in extended (wind) coverage. The settlement, instead, resulted in a 0% increase for fire coverage and a statewide average 5.3% increase for extended (wind) coverage, an almost 20-percentage point reduction from the proposed increase. The new rates apply to all new and renewal polices effective on or after July 1. The settlement includes provisions for credits for dwelling owners who install fortified roofs. Fortified roofs are built to a higher standard and designed to better withstand high winds that come from storms. Such credits could reduce insurance premiums by an average 7% in some territories."

According to NCDOI, dwelling insurance policies are not homeowners’ insurance policies. Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner.

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