Storms often sweep through the Outer Banks, but major property damage is infrequent.
Property owners would see average insurance rate increases of 25 percent statewide and
more than 35 percent along the coast under a proposal submitted Friday by the North Carolina
Rate Bureau.
Some areas would see reductions of up to 2.7 percent under the request, according to a statement from the North Carolina Department of Insurance.
The Department of Insurance will examine the proposal to see if changes in rates are warranted. The insurance companies also want revisions to geographic rating territories.
If the department and the Rate Bureau cannot agree, Commissioner Wayne Goodwin will call for a public hearing. Both sides will present their arguments at the hearing, the statement said.
Often, the Rate Bureau, which represents the interests of insurance companies, will submit a
proposal that appears high and the Department of Insurance will settle on a lower compromise.
This time, Goodwin was critical of the request.
“New homeowners insurance rates went into effect in July 2013. I am appalled that the insurance companies would request another increase just six months later,” Goodwin said in a statement. “I believe the insurance companies should withdraw this rate filing immediately. If they do not, the insurance companies should expect a full hearing on this matter; I will not entertain any settlement negotiations.
“I urge North Carolina homeowners to take advantage of the public comment period and let their insurance companies know what they think about the notion of another homeowners insurance rate increase.”
Critics of past increases say charging significantly higher rates in coastal counties represents
an unfair burden because tropical systems often inflict costlier damage from rain and wind in more developed inland areas.
The filing is available on the Department of Insurance website. Go to pserff.ncdoi.net/pc.html and enter the Serff Tracking Number NCRI-129361028. There will be a public comment session on Friday, Jan. 24, from 9:30 a.m. to 4 p.m. in the Jim Long Hearing Room of the Dobbs Building, 430 N. Salisbury St., Raleigh.
Written comments will be accepted from Jan. 3 through Jan. 31. Mail them to: NCDOI, Attn: Bob Mack, Property & Casualty Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; or e-mail 2014homeowners@ncdoi.gov.
By Rob Morris on January 4, 2014
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