North Carolina Homeowners Face Moderate Insurance Rate Increase
GREENSBORO, N.C. — Starting June 1, homeowners in North Carolina will see their insurance premiums rise by an average of 7.5%, with another similar increase set for June 2026. This decision is part of a two-year settlement orchestrated by Insurance Commissioner Mike Causey, which significantly mitigates the original rate hike proposal of 42.2%.
The North Carolina Rate Bureau initially proposed drastic increases, with some areas facing jumps as high as 99%. However, the negotiated settlement caps the rise at a more manageable rate, totaling a 15% increase over two years. The implications vary across regions; for example, cities in the Triad, including Greensboro and Winston-Salem, face increases of around 8.2% to 8.3% annually.
Key details of the agreement include:
- An average 7.5% increase effective June 1, 2025.
- A second 7.5% increase effective June 1, 2026.
- No new rate filings will be accepted before June 1, 2027.
- Rate hikes are capped at 35% per territory, regardless of risk levels.
Commissioner Causey emphasized that the compromise aims to protect consumers from severe premium spikes while enabling insurance companies to cope with increasing costs due to inflation and climate-related disasters. "I believe this settlement is very favorable to consumers while ensuring insurers can remain viable and pay claims," he stated.
The Department of Insurance estimates that this settlement will save North Carolina homeowners approximately $777 million in avoided costs compared to what was initially requested. Homeowners can check specific rate changes for their areas on the NC Department of Insurance website, ensuring they stay informed as these adjustments take effect.
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