Commissioner Causey says "NO!" to insurance companies' excessive homeowners' insurance rate hike request
I recently said “No!” to the average 42% statewide average homeowners’ insurance rate increase proposed by the insurance companies in their January.
Homeowners were shocked with the high amount requested by the insurance companies, and so was I.
Evidence has not been presented to justify such a drastic rate increase on North Carolina consumers in my opinion. This extreme request sparked action from homeowners across the state. The Department of Insurance and I have received more than 25,000 letters and emails on the proposal. Others spoke out against the request during our public comment forum held in Raleigh in person or by computer.
North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review.
Although the 42% increase is the average, the proposed rates put forth by the insurance companies ranged from 4.3% in some mountain counties to 99.4% in some beach areas.
The proposal was filed by the North Carolina Rate Bureau. The Rate Bureau represents companies that write insurance policies in the state. It is not part of the Department of Insurance. The bureau was created by the General Assembly in 1977. Insurance companies writing homeowners’ insurance or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau.
In my opinion the proposed increases are excessive and unfairly discriminatory. That’s why I said no to the proposal and set a hearing date for Oct. 7.
This is the fourth time since I took office as your Insurance Commissioner that the insurance companies have proposed a homeowners’ rate increase. And this is the fourth time that I’ve said “No!” I’ve also said no to every proposed rate hike on automobile insurance and have negotiated settlements more reasonable for consumers.
As your Insurance Commissioner, I have a balancing act to perform when it comes to insurance premiums:
- I have to make sure that insurance rates are adequate for insurance companies to pay claims and remain financially sound. Also, I must make sure those rates are not ‘excessive’ or ‘unfairly discriminatory’.
- By state law, I have to make sure that insurance companies are solvent so they can pay their claims. Also, we want to have a robust insurance market so North Carolinians can have choices in their insurance policies. Without this competition, consumers will suffer.
If you have any questions regarding your insurance or need help getting a pending claim paid, call us toll free at 855-408-1212 or email commissioner@ncdoi.gov. We’re here to help!
|
