Worried your NC home will be uninsurable in 2024? You’re not alone.
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Navigating higher premiums, what homeowners should know
The insurance industry has increased home insurance rates due to high inflation, resulting in homeowners paying higher premiums or struggling to obtain coverage. The News & Observer and The Herald-Sun provide details on this
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A national survey confirm what many homeowners in North Carolina already know: Premiums are skyrocketing, causing many to fear that they may lose their home.
About 72% of U.S. homeowners experienced insurance rate hikes in 2023, according to a new ValuePenguin by LendingTree survey — and 26% worry their homes will become uninsurable in 2024 and beyond.
Policyholders blamed inflation (72%), rising home prices (51%) and climate change (25%).
“Solutions to the home insurance crisis need to address the root causes,” Divya Sangameshwar, a LendingTree spokesperson, told The N&O in an email.
“Simply focusing on lowering home insurance rates could lead to homeowners having fewer options with less coverage or having a home that’s uninsurable.”
The survey also found:
- 19% of homeowners received a non-renewal notice from their insurer.
- 37% of homeowners saw their insurance premiums rise 5% to 10%.
- 24% of homeowners reported rate hikes of 11% to 30% in 2023.
- 34% of homeowners are struggling to afford their homeowners insurance premiums in 2024.
- 8% of homeowners have opted to go without homeowners’ insurance in 2024.
- 75% of homeowners are bracing themselves for more rate hikes in 2024.
- 52% of homeowners want the federal government to intervene and regulate their homeowners’ insurance rates.
(Read full report here.)
Ongoing rate debate
It’s been three years since North Carolina last approved a rate increase — in November 2020 when the Rate Bureau asked for an overall rise of 24.5% and ultimately received 7.9%.
Insurers say it’s time to renegotiate to cover rising costs. Underwriters are increasingly tightening guidelines and, in come cases, charging up to 250% higher than the state-approved rate.
In January, the Rate Bureau, which represents companies that write insurance policies in the state, asked for a 42.2% average increase.
On Feb. 6, North Carolina Insurance Commissioner Mike Causey rejected the request, saying he was “shocked” at the amount.
Causey is now in charge of negotiating a settlement with the Rate Bureau on a lower rate.
If they can’t agree, a hearing has been scheduled for Oct. 7.
This story was originally published March 18, 2024 at 7:00 AM with the headline "Worried your NC home will be uninsurable in 2024? You’re not alone.."
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