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Proposed North Carolina homeowners insurance hike called “excessive and unfairly discriminatory”

Kill Devil Hills, N.C. (WTKR) – A plan that would hike homeowners insurance rates in North Carolina continues to come under fire.

NewsChannel 3 first reported on the proposal in January.

Insurance companies in the Tar Heel state submitted a proposal through the North Carolina Rate Bureau that would increase the rates by a statewide average of 25.3% while parts of the Outer Banks could see their rates increase by 35%.

It’s particularly irksome for Outer Banks homeowners like Cynthia Lindquist who was affected when the rates increased last summer.

“That wiped out our savings account,” Lindquist said. “I don’t know what we are going to do this year if they increase it anymore. We just really don’t have that much more in our monthly budget to do it.”

North Carolina Insurance Commissioner Wayne Goodwin ordered a public hearing to be held in Raleigh on August 6 on the proposed increases.

In the Notice of Hearing, Goodwin calls the data used by the insurance companies to support their request “questionable” and writes “there is a pervasive lack of documentation, explanation and justification.”

He goes on to say “the proposed rates appear in their entirety to be excessive and unfairly discriminatory.”

The North Carolina Department of Insurance says more than 10,000 comments on the proposed hikes were submitted during the January public comment period.

To read the full Notice of Hearing, click here.

7 comments

  • baldguy42

    Of course they are going to hike rates. With the vultures in charge of the entire state, anything is up for grabs (and for sale, don’t kid yourself). And, then, of course, they hold a meeting about it in Raleigh… which is about three hours away and most of the residents who are going to be very affected by this will not be able to make that trip. Convenient, isn’t it? I can only hope Mr. Goodwin will continue to make sure the residents of Dare County will no tbe run off so the vultures and weasels can take the entire Banks over and turn it into Va. Beach, where you have to have permission to walk on the shore and can be arrested for trespassing just from setting up your beach chair in front of a hotel or condo. Of course we all want that!

  • SLEZE

    Umm…Do the current rates actually cover damage to homes that are washed into the sea every 10-20 years? Why would any insurance company want to cover ANY homes that are so flood prone?

  • Charles Boyer

    Seems like it is only fair for higher risk areas to pay higher rates. Why should homeowners in the rest of the state subsidize insuring home more prone to hurricane and other storm damage? If it is because of the local economy, then the higher rates are a simple cost of doing business. If it because it is “not fair” then that is socialism.

  • empresstrudy

    35% is like what the rest of us already get all the time what with the industrial scale of fraud going on with roofing replacements.

  • Reality

    If Ms. Lindquist’s savings were wiped out by an insurance rate increase… perhaps she should re-evaluate her spending habits.

  • R Sweeney

    Back in the days before insurance, people knew not to build anything they could not afford to lose on the barrier islands. The islands themselves come and go, move north, south east and west. There is nothing man can build to survive that.

    But thanks to insurance, doing really risky and stupid stuff was made possible.

    Expecting OTHER people to pay for YOUR building an expensive house on the beach is quite greedy.

    The insurance rates need to rise as high as needed to cover the beach front owners with their actual costs.

  • Trip

    They shouldn’t continue to rebuild homes in the flood zone at cost to the entire state. If someone wants to live in the flood zone then they should pay. Plain and simple

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