Special to Iredell Free News
RALEIGH — The N.C. Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau on its proposed 24.5 percent homeowners insurance rate increase, averting an administrative battle with insurance companies.
N.C. Commissioner Mike Causey, who announced the settlement in a news release, and the Rate Bureau settled on an average 7.9 percent statewide increase, which is a 16.6 percent lower rate than the Rate Bureau requested. This means the hearing scheduled for January 3, 2022, is canceled.
“I am happy to announce that North Carolina Homeowners will save over $751 million in premium payments compared to what the NCRB had requested,” Causey said. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
Iredell County residents will see an increase of up to 9.9 percent.
On November 9, the Rate Bureau, which represents companies writing property insurance in North Carolina and is not a part of the N.C. Department of Insurance, proposed an overall statewide average of 24.5 percent. After studying the data, Commissioner Causey negotiated a settlement for a much smaller overall statewide increase of 7.9 percent.
The increase will take effect on new and renewed policies beginning on or after June 1, 2022. As part of the agreement, the Rate Bureau will not seek another homeowners rate increase until 2024 at the earliest, meaning this rate change will be in effect until at least 2024.