Base home insurance premium rates in North Carolina are increasing by about 15% through mid-2026
RALEIGH. NC (AP) — Base rates for North Carolina homeowners insurance premiums will increase by an average of about 15% through mid-2026 as part of a settlement reached between the state Department of Insurance and the industry.
Agreement announced Friday by state Insurance Commissioner Mike Causey contradicts a January 2024 request from the North Carolina Office of Tariffs, which represents insurance companies, asking for an overall average increase of 42.2%.
Causey, an elected official who began his third term earlier this month, officially rejected the bureau’s request last year. This led to a formal hearing that began in October and involved several weeks of witnesses, evidence and arguments. The state insurance department said its witnesses would argue rates should be lowered or raised by less than 3%.
Apart from the settlement, the hearing officer – in consultation with Causey – would decide what the new rates should be. The tariff bureau could appeal that decision to the court.
Causey said in a press release that the proposed rate increases “are sufficient to ensure that insurance companies, which have paid out large amounts due to natural disasters and face rising reinsurance costs due to national disasters, have adequate funds on hand to pay claims. “
The bureau attributed its large claim to high inflation – particularly in building materials – combined with catastrophic storms and “grossly inadequate” premium rates to cover claims. The increases sought by the bureau varied widely from just over 4% in parts of the mountains to over 99% in some coastal areas.
The agreed increases, carried out in two parts, will vary depending on the location. On average across the state, the base rate will increase by 7.5% on June 1 and by another 7.5% on June 1, 2026.
The largest increase will generally occur in parts of eastern North Carolina that were hit hard by Hurricane Matthew in 2016 and Hurricane Florence in 2018, The News & Observer of Raleigh reported. For example, beach areas from Carteret to Brunswick County will experience an average increase of 16% in mid-2025 and an additional 15.9% in mid-2026.
Areas hardest hit in the fall by historic flooding from Hurricane Helene will face lower-than-average increases. For example, base rates in Buncombe, Watauga and Yancey counties will increase by 4.4% in 2025 and 4.5% in mid-2026.
Among densely populated areas, base rates in Raleigh and Durham will increase by an average of 7.5% in each of the next two years. In Charlotte, rates would increase by 9.3% in 2025 and by 9.2% in 2026.
The settlement also prohibits the Tariff Bureau from attempting to raise rates again before June 1, 2027, Causey said in a statement.
