THURSDAY, MARCH 5, 2015
The N.C. Insurance Comissioner has approved a rate increase for our territory of 16.6 % effective June 1, 2015. This is the second rate increase for the homeowner line of business since last July when a 17% increase was imposed. Most homeowners will not see the full 16.6% due to various policy credits/offsets but most everyone will see some increase. What can you do to offset these rate increases? I would suggest that you increase your deductible to at least $1,000, consider installing a centrally monitored fire/burglar alarm system, take another look at the replacement value of your home for accuracy, have the agent re-run your credit score if you think it has improved recently.
The homeowner line of business in NC is somewhat distressed due to lots of factors but basically the rates are not keeping up with the claim activity to make this a profitable line of business for most insurance companies. The polictical climate and the NC Rate Bureau System of rate promligation contributes to this to some degree but unprofitability is the primary reason for this increase.