North Carolina home insurance rates will rise by an average of 7.5% in both 2025 and 2026. This increase is significantly lower than the 42.2% average hike initially proposed by the North Carolina Rate Bureau, following negotiations led by Insurance Commissioner Mike Causey.
The new rates will take effect on June 1 of each respective year, according to the North Carolina Department of Insurance. Some areas faced potential increases of up to 99.4%, but Causey described the final settlement as a major victory for homeowners.
The agreement also limits rate hikes to 35% in any region and prevents the bureau from seeking another increase until June 2027.
Causey noted that the adjusted rates would still provide insurers with enough revenue to cover claims, despite the rising costs of reinsurance and the financial impact of natural disasters.
North Carolina homeowners will save approximately $777 mn in insurance premiums over the next two years compared to what the insurance companies requested
Insurance Commissioner Mike Causey
The rate bureau submitted its initial request in January 2024. A month later, Causey pushed back, arguing there was no valid justification for such an increase. His opposition led to a 19-day hearing, resulting in the final agreement, according to a letter sent by the rate bureau to its member companies. Membership in the bureau is required for insurers operating in the state.
The bureau defended its request by pointing out that it had not received a rate increase since 2020. At that time, regulators approved only a fraction of the proposed increase and barred the bureau from seeking another adjustment until 2024. Since then, insurers have faced mounting financial strain due to inflation and frequent severe weather, the bureau argued in an October hearing.