Murphy – Cherokee County commissioners oppose a request from the insurance industry to increase property instrance rates by an average of 42 percent statewide, ranging from 99 percent on the coast to 8.5 percent in Cherokee County.
Homeowners with coverage through the N.C. Insurance Underwriters Association would be subjected to a 15 percent surcharge, resulting in an insurance rate increase of 23.5 percent.
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County boards of commission across the state are considering or have already passed resolutions opposing rate increases proposed by the N.C. Rate Bureau. Cherokee County’s board of commissioners passed its resolution on a 5-0 vote Jan. 22.
“The high cost of homeowners insurance already places a great burden on Cherokee County homeowners,” according to Cherokee County’s resolution. The board “opposes the excessive insurance rate request and requests that N.C. Insurance Commissioner Mike Causey deny this absurd rate increase on behalf of all North Carolinians.”
Causey issued a statement to clear up any confusion regarding the recent filing made by insurance companies:
“Many North Carolina citizens have already told me how worried they are about the recent filing made by the N.C. Rate Bureau requesting an increase to homeowners’ insurance rates, and they’ve got good reason to be concerned,” he said. “An average increase of 42 percent statewide, and as high as 99 percent for homes on the coast is a lot.”
The Commissioner of Insurance in North Carolina does not set insurance rates, Causey said. Rates are set by the Rate Bureau, an organization created by the General Assembly. Insurers in the state that write certain lines of personal insurance, including homeowners and automobile, are the members of the Rate Bureau.
“It is the Rate Bureau, and not the Commissioner of Insurance, that submits proposed insurance rates to the Department of Insurance for consideration,” he said.
“Under our laws, the commissioner has 50 days from the filing date to review the Rate Bureau’s proposal to determine whether it meets certain very technical, mathematical standards. In addition, during this 50-day review period, the public may submit comments on the Rate Bureau’s proposal.”
Consumers can do so by submitting those comments in writing via mail or e-mail by Friday.
During the 50-day review period, which expires Thursday, Feb. 22, the department’s actuaries, attorneys and consultants are working to determine whether the Rate Bureau’s proposed increase is “excessive, inadequate or unfairly discriminatory.”
“If it is, I will call for a hearing on the matter and will fight for our consumers to ensure that any proposed increase is reasonable and actuarially sound,” Causey said. “Just to be clear, although the Rate Bureau submitted the requested increase, the request has not been approved.”
Consumers who have questions about their insurance can visit ncdoi.gov or call the department toll free at 855-408-1212. Email comments no later than Friday to 2024Homeowners & ncdoi.gov.