Worried your NC home will be uninsurable in 2024? You’re not alone.
A national survey confirm what many homeowners in North Carolina already know: Premiums are skyrocketing, causing many to fear that they may lose their home.
About 72% of U.S. homeowners experienced insurance rate hikes in 2023, according to a new ValuePenguin by LendingTree survey — and 26% worry their homes will become uninsurable in 2024 and beyond.
Policyholders blamed inflation (72%), rising home prices (51%) and climate change (25%).
“Solutions to the home insurance crisis need to address the root causes,” Divya Sangameshwar, a LendingTree spokesperson, told The N&O in an email.
“Simply focusing on lowering home insurance rates could lead to homeowners having fewer options with less coverage or having a home that’s uninsurable.”
The survey also found:
19% of homeowners received a non-renewal notice from their insurer.
37% of homeowners saw their insurance premiums rise 5% to 10%.
24% of homeowners reported rate hikes of 11% to 30% in 2023.
34% of homeowners are struggling to afford their homeowners insurance premiums in 2024.
8% of homeowners have opted to go without homeowners’ insurance in 2024.
75% of homeowners are bracing themselves for more rate hikes in 2024.
52% of homeowners want the federal government to intervene and regulate their homeowners’ insurance rates.
(Read full report here.)
Ongoing rate debate
It’s been three years since North Carolina last approved a rate increase — in November 2020 when the Rate Bureau asked for an overall rise of 24.5% and ultimately received 7.9%.
Insurers say it’s time to renegotiate to cover rising costs. Underwriters are increasingly tightening guidelines and, in come cases, charging up to 250% higher than the state-approved rate.
In January, the Rate Bureau, which represents companies that write insurance policies in the state, asked for a 42.2% average increase.
On Feb. 6, North Carolina Insurance Commissioner Mike Causey rejected the request, saying he was “shocked” at the amount.
Causey is now in charge of negotiating a settlement with the Rate Bureau on a lower rate.
If they can’t agree, a hearing has been scheduled for Oct. 7.
More NC residents are losing home insurance as underwriters tighten guidelines
NC insurance commissioner has rejected a requested 42.2% rate hike. What to know.