Navigating the 2025 Homeowners Insurance Rate Increases in North Carolina

In January 2025, North Carolina Insurance Commissioner Mike Causey reached a settlement with the North Carolina Rate Bureau regarding homeowners insurance rates. Initially, the Rate Bureau proposed a steep 42.2% average statewide increase, with some areas facing hikes of up to 99.4%. After negotiations, a more moderate increase was agreed upon to balance the financial stability of insurance providers with affordability for homeowners.

Key Details of the Settlement

  • Phased Rate Increases: Homeowners insurance base rates will increase by an average of 7.5% on June 1, 2025, followed by another 7.5% hike on June 1, 2026. This gradual approach allows homeowners to adjust over time.
  • Territorial Variations: Rate adjustments will vary by location, with no area seeing an increase greater than 35% over the two-year period. Areas with a history of natural disasters may face higher adjustments due to increased risk factors.
  • Rate Stability Assurance: As part of the agreement, the Rate Bureau cannot propose further homeowners insurance rate increases before June 1, 2027, ensuring a period of rate stability.

Why Are Rates Increasing?

Several factors have contributed to these rate adjustments:

  • Natural Disasters: North Carolina has seen an increase in natural disasters, leading to more claims and higher costs for insurers.
  • Rising Reinsurance Costs: Insurers purchase reinsurance to protect against significant losses. Due to national catastrophes, reinsurance costs have surged, affecting overall insurance pricing.

How Homeowners Can Prepare

To manage these rate increases, homeowners should consider the following steps:

  • Review and Update Policies: Ensure your coverage meets current needs and property values.
  • Implement Risk Mitigation Measures: Investing in storm-proofing and other home improvements may lower premiums.
  • Explore Discounts: Ask about discounts for safety features or bundling multiple policies.
  • Consult Your Insurance Agent: Professional guidance can help you find the best strategies to mitigate rising costs.

Paramount Insurance Agency Is Here to Help

At Paramount Insurance Agency in High Point, NC, we know that navigating insurance changes can be challenging. Our team is committed to helping you understand these adjustments and find the best coverage options for your needs. Contact us today to review your policy and explore ways to manage the upcoming rate increases effectively.

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