Banking
Here’s where home insurance prices are going up in North Carolina
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Home insurance is getting more expensive in North Carolina.
Skyrocketing building material costs and a higher risk of natural disasters are making it more costly to provide coverage, industry experts say. As a result, the N.C. Department of Insurance — which regulates the cost of policies in the state — approved a statewide average rate increase of 7.9% earlier this year.
But there’s also a way that insurance companies can charge rates higher than those approved by state officials: a consent to rate policy.
These types of policies are becoming more common in North Carolina. In 2012, about 22% of premiums paid on residential property insurance came from a consent to rate policy, according to a study in the Journal of Insurance Regulation citing state data. Now, that number statewide and in the Charlotte region is around 50%, according to a new analysis by The Charlotte Observer.
On average, customers with a consent to rate policy paid $321 more on home insurance last year.
North Carolina’s insurance department data is broken down by insurance territories rather than counties, so you’ll see that reflected in the charts below.
Here’s where standardized rate increases were approved, going into effect June 1, 2022.
This story was originally published September 21, 2022 5:00 AM.
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