In a move that surprised no one, N.C. Insurance Commissioner Mike Causey this month rejected a proposal by the state’s insurance industry to raise homeowner insurance premiums by 42% statewide and an eyewatering 99% in beach and coastal areas around Wilmington.
“Homeowners were shocked with the high amount requested by the insurance companies, and so was I,” Causey said in a release.
The rejection, however, doesn’t mean the end of the process, but just the beginning of likely negotiations between regulators and the industry that could be influenced by the upcoming November election, in which Causey is seeking re-election.
How did we get here?
The N.C. Rate Bureau , which represents the state’s insurance companies, cited two main factors for the surprisingly large rate increase proposal. First, is the rising cost of pretty much everything, including labor and potential repairs, driven by inflation and the lingering impacts of labor and material shortages tied to the COVID-19 pandemic.