North Carolina homeowners will face an average 7.5% increase in homeowners insurance rates starting June 1. The increase follows negotiations between Insurance Commissioner Mike Causey and the insurance industry.
Insurers originally requested an average 42% statewide increase before Causey rejected the proposal in 2024.
The final agreement reduced the proposed hike, but homeowners and Democratic leaders say the approved increase still adds pressure to already strained household budgets.
According to Bankrate, the average annual cost of homeowners insurance in North Carolina is about $2,951. That equals roughly $246 a month for a home with $300,000 in dwelling coverage.
The state’s average is higher than the national average of $2,424 a year. A recent U.S. Government Accountability Office report also found some North Carolina communities saw inflation-adjusted premium increases above 50% between 2019 and 2024.
The largest increases were concentrated in coastal areas exposed to severe storms. State Sen. Natalie Murdock, D-Chatham and Durham, said homeowners are facing nonrenewals, denied claims, and rapidly rising premiums.
The North Carolina Department of Insurance said its role is to make sure insurers collect enough money to pay claims while keeping rates from becoming excessive or discriminatory. A department spokesperson did not describe the state as being in an insurance crisis.
The DOI advised homeowners to shop around, since not every insurer uses consent-to-rate pricing. It also urged policyholders to check coverage amounts, ask about discounts, and consider higher deductibles if they need lower premiums.
Democratic Party Chair Anderson Clayton criticized Republican leaders for failing to pass a state budget. She also said homeowners and small businesses recovering from Hurricane Helene need more support.
Residents and business owners in western North Carolina described sharp premium increases. Tony Dunn said he moved to North Carolina after losing his home in California’s 2018 Camp Fire, expecting fewer climate-related insurance problems.
Dunn said he had no damage from Helene. Even so, his homeowners insurance costs have nearly tripled over the past six years, including a 30% increase after the storm.
Alex Webber, a small business owner, said she moved from New Orleans to western North Carolina after Hurricane Katrina. She later moved from Asheville because property costs kept rising.
Webber said Helene flooded her Madison County business with several feet of water and caused major damage. She said her homeowners and business insurance premiums rose about 50% afterward, and she received no FEMA assistance.
Murphy’s spokesperson criticized Unlocking America’s Future as a special interest group and defended Murphy’s record on insurance and affordability.
The spokesperson said Murphy helped lead the North Carolina congressional delegation’s effort to reject the Rate Bureau’s 2024 homeowners insurance rate request. The statement also cited his legislation tied to National Flood Insurance Program payouts for condemned homes and a disaster-related deadline extension bill signed into law.
