In a major win for North Carolina homeowners, Insurance Commissioner Mike Causey announced today that the state’s Department of Insurance has resolved its legal dispute with insurance companies over proposed rate increases. The N.C. Rate Bureau, representing the insurance industry, had originally sought an average statewide rate hike of 42.2%—with some areas, particularly beach communities in Brunswick, Carteret, New Hanover, Onslow, and Pender Counties, facing increases as steep as 99.4% in a single year.
Under the new agreement, the average statewide base rate will only increase by 7.5% on June 1, 2025, and another 7.5% on June 1, 2026, totaling roughly a 15% increase by mid-2026. This settlement marks a significant reduction from the previously proposed hikes, ensuring that homeowners will not face exorbitant premium increases.
Commissioner Causey emphasized the importance of this agreement, stating, “The insurance companies wanted to raise our homeowners’ rates up to 99.4% in some areas and an average of 42.2% statewide in a single year. I fought for consumers and knocked them back to 7.5% increases over two years with a maximum of 35% in any territory. We consider this settlement a big win for both homeowners and North Carolina.”
Additionally, the new agreement includes a provision that prohibits the Rate Bureau from pursuing further base rate increases until June 1, 2027, offering homeowners additional financial stability and predictability.
Officials estimate that these changes will save North Carolina homeowners approximately $777 million in insurance premiums over the next two years compared to the initially requested increases. While the new rates are designed to provide adequate funds for insurance companies—who have faced rising costs due to natural disasters and increased reinsurance expenses—they also offer much-needed relief for consumers.
This settlement, affecting policies across the state, reflects North Carolina’s commitment to protecting homeowners from unwarranted cost increases while maintaining a robust and resilient insurance market.