State insurance regulators on Monday heard from the public about a proposal to significantly increase homeowners insurance rates.
A long time ago realtor Helen Mayhew He was one of several people who spoke against the change at Monday’s public comment session.
All of those who spoke were against the increase proposed by the rate office.
“I’m telling you, this is ridiculous,” Mayhew said.
The Rates Bureau, an independent agency representing the insurance industry, is not affiliated with the state Department of Insurance. The office is calling for a statewide average increase of 42% in homeowners insurance starting in August.
In Wake and Durham counties, the bureau is requesting a 39% rate increase, which would increase a homeowner’s average annual insurance bill by more than $500.
Along the Southeast Coast, the office is requesting a 99% increase for beach communities, which would increase the average annual insurance bill in that area by more than $5,500 to $11,196.
The rate office said the dramatic increase on the coast is due to climate change, which is causing more severe storms at the same time as more people are moving to the coast.
However, Mayhew He said it’s too much for homeowners.
“We know we have climate change,” Mayhew said. “We understand that. But that doesn’t mean that’s an excuse to demand these kind of price increases.”
The state Department of Insurance will negotiate with the rate office behind closed doors to reach a settlement on the increase.
In 2020, insurance companies requested a 24% increase but ultimately received 8%. North Carolina is the only state in the country that sets its insurance rates this way.
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