Manteo Residents Face Potential 42.2% Homeowners Insurance Rate Hike Amid Growing Concerns

Manteo Residents Brace for Potential Homeowners Insurance Rate Hike

In the charming town of Manteo, a buzz of concern has surfaced as residents gear up for a court hearing scheduled for October 7. This meeting has been called by North Carolina’s Insurance Commissioner Mike Causey to address the North Carolina Rate Bureau’s request for a staggering average increase of 42.2% in homeowners insurance rates. The shocker? Some coastal areas could see hikes of nearly 99.4%. Yes, you read that right! This could mean that homeowners in Dare County’s beach communities might face rate jumps exceeding 60%, as reported in local resolutions and outraged letters that are flooding the commissioner’s office.

What Does This Mean for Homeowners?

For those unfamiliar, the North Carolina Rate Bureau isn’t your typical government agency. It was established back in 1977 to represent the interests of the insurance industry. At a recent gathering at the Virginia S. Tillett Community Center, Commissioner Causey characterized this proposed hike as “the largest rate hike I’ve ever seen since I’ve been in this job.” That’s significant, considering he began his role in 2017.

During his speech, which attracted a modest group of around 26 people, Causey kept his cards close to his chest when asked about what rate increase he would find acceptable. “I want to keep an open mind,” he conveyed, indicating that he was eager to see the evidence put forth by the Rate Bureau when court proceedings commence this fall.

A Look Back in Time

In a similar situation back in 2020, the Rate Bureau sought an average homeowners rate increase of 24.5%. However, that hearing was canceled, leading to a negotiated smaller increase of 7.9%. This was capped at 10%, which rolled out in January 2022. This time, however, it seems the stakes are higher.

Many homeowners are concerned about the rising cost of insurance. According to Causey, insurance companies are currently in a difficult spot, paying out $1.15 in claims for every dollar they bring in from premiums. In fact, the costs have spiked more than ever, with reinsurance costs having doubled over the last two years.

Community Voices Rise Up

The pushback from local communities has been strong and immediate. A total of over 25,000 letters and emails, mostly opposed to the rate hikes, have flooded into Causey’s office, showcasing widespread discontent. Notable organizations like AARP, various realtors’ associations, and town councils from Duck, Kitty Hawk, Kill Devil Hills, and Manteo have voiced their concerns through resolutions.

What’s the impact? Proposed increases suggest rates could rise by 45.1% for Dare and Currituck counties’ beachfront properties, while areas further inland would face increases of 33.9%. Homeowners enrolled in the North Carolina Insurance Underwriting Association (dubbed “the Beach Plan”) could see overall increases soaring to 60.1% for beach communities. This plan is critical, as it covers around 70% of homes in North Carolina’s coastal counties.

A Broader Perspective

Interestingly, some locals feel unfairly targeted. One attendee pointed out that neighborhoods in northeastern North Carolina often bear the brunt of rate increases, even when they face fewer claims compared to other regions. “We have this thing called Cape Hatteras,” he joked, suggesting that storms often avoid the area. Commissioner Causey acknowledged this observation, admitting that rates indeed seem to hit northeastern North Carolina the hardest.

The Bigger Picture

As the insurance landscape continues to shift, the upcoming hearing is shaping up to be a pivotal moment for the community. With North Carolina’s legislature holding ultimate authority over insurance law changes, Causey encouraged homeowners to make their voices heard directly to their legislators.

As the October date draws closer, Manteo residents remain hopeful yet anxious about what lies ahead. They are closely watching how this insurance saga unfolds, as it carries implications not only for their wallets but for the very essence of homeownership in this scenic coastal town.