Dozens of North Carolinians attended a public comment session Monday to speak against a North Carolina Rate Bureau request to increase homeowners insurance by an average of 42%.
The Rate Bureau, which represents companies that write insurance policies, made the request to the NC Department of Insurance earlier this month citing a higher cost of doing business due to climate change, which produces more powerful hurricanes and more severe flooding.
But homeowners, elected officials, Realtors and others who spoke Monday said such a “budget busting” increase would harm low income North Carolinians, retirees and others who live on fixed incomes. It could also have a negative impact on the state’s economy and put homeownership out reach for many young families and other moderate income North Carolinians, they said.
Wayne County resident Christal Howell said a proposed rate increase in homeowner insurance would force her young family to choose between paying the mortgage and buying food.
“If rates continue to increase we will and already have considered leaving the state to live in a state that better benefits our bottom line,” Howell said during a public comment session held by the state Department of Insurance.
The Rate Bureau has requested a 57.8% for Bertie, Greene, Martin, Pit and Wayne counties.
The rates for coastal counties would be significantly higher. For example beach areas in Brunswick, Carteret, New Hanover, Onslow and Pender counties would be hit with a 99.4% rate increase.
“This increase impacts us in an insane manner,” said Swansboro Mayor John Davis. “We find this to be obtuse at best to ask for a 99% increase and poor negotiating at the least knowing that what you’re really asking for is a 10% to 15% to 20% increase, which we do not accept either.”
The proposed increase in the cities of Durham Raleigh and Durham and Wake counties would be 39.8%. Click here to see the full list of the proposed homeowner increase. The Rate Bureau asked that the new rates become effective Aug. 1.
Davis, a candidate for the Onslow County Board of Commissioners, said such an exorbitant rate increase would devastate his county.
“We do have a large population of folks that are below the poverty line as well as a population of folks who are on fixed incomes and with the current inflation rate, their fixed incomes are not keeping up with such rate hikes and inflationary measures like these,” Davis said.
He said the Onslow County commissioners will adopt a resolution this week opposing the rate increase.
Michelle Smoak of Stella in Carteret County said a proposed 44% rate increase would nearly double her $1,400 a year homeowner’s insurance.
“My husband is about to retire from the Marine Corps and we are extremely worried about this increase they’re talking about,” Smoke said.
Smoak said that she already works two jobs to make ends meet.
“It’s very scary when you’re talking about raising somebody’s mortgage two, three, four hundred dollars,” Smoak said. “It makes you want to leave and find some where cheaper, but the problem is that you’re probably not going to find that.”
Sen. Natasha Marcus, D-Mecklenburg, who is running for insurance commissioner, took a shot at Republican incumbent Mike Causey for not attending Monday’s comment session.
“When we hold public comment sessions in the General Assembly, we, the elected folks who are supposed to represent the people are in the room to hear that,” Marcus said. “We don’t just don’t send staff to listen. I think it’s important that elected officials hear directly from the people.”
Marcus added that the homeowners deserve a full public hearing on the rate increase proposal.
“That would include evidence presented by insurance companies, under oath, about their profits, about their salaries, about the claims made in the different regions of the state,” Marcus said. “That evidence needs to be cross-examined by the commissioner of insurance himself.”
Marcus said residents do not want another private settlement like the one in 2020 that resulted in a 7.9% overall average increase after the Rate Bureau requested a 24.5% increase.
Causey said In a video released last week that he’s committed to fighting for a lower rate. “That is exactly what I have done in the past and will continue to do this year,” he said.
Causey has two challengers in the March 5 GOP primary. The challengers are Robert Brawley of Mooresville and Andrew Marcu of Chapel Hill. Meanwhile, Natasha Marcus will face Dave Wheeler of Spruce Pine in the Democratic primary.
Christina Ashbury, the NC Realtors’ legislative chairperson, said the proposed rate hike is excessive.
“North Carolina is facing a housing crisis,” Ashbury said. “Additionally, the cost of homeownership continues to skyrocket resulting in homeowners being locked in and homebuyers locked out.”
Asbury said that economic growth and investments in the state will slow if such a large rate increase is granted.
Residents can email or submit written comments to the Department of Insurance until Feb. 2.
— Emailed public comments should be sent to: [email protected].
— Written public comments must be received by Kimberly W. Pearce, Paralegal III, and addressed to 1201 Mail Service Center, Raleigh, N.C. 27699-1201.
