Manteo, NC is facing a proposed average homeowners insurance rate hike of 42.2%, with coastal areas seeing increases up to 99.4%. Concerns have escalated among locals as a court hearing approaches on October 7, where the implications of these rate changes will be discussed. Residents express their worries over affordability and coverage, with over 25,000 letters submitted against the proposed hikes. This situation reflects broader issues in the insurance industry amid historical claims ratios and recent natural disasters.
Manteo, North Carolina, is getting quite the shake-up in the world of homeowners insurance, and it seems like there’s plenty to talk about. A court hearing is scheduled for October 7 where the North Carolina Insurance Commissioner, Mike Causey, will dive into the nitty-gritty behind a troubling 42.2% average rate increase proposed by the North Carolina Rate Bureau. Buckle up, because some coastal areas could see increases soar to a staggering up to 99.4%!
This proposed hike has stirred quite the backlash from locals. Dare County’s enchanting beach communities might face rate jumps exceeding 60% as homeowners brace for the possibility of hefty monthly premiums. The idea of trying to manage costs amidst these impending changes feels like a storm brewing in more ways than one.
The North Carolina Rate Bureau isn’t your average organization; it was formed by the state legislature back in 1977 and primarily looks out for the interests of the insurance industry. This proposed increase is being marked as the biggest one that Causey has had to deal with during his time in office since he took the role back in 2017.
At a recent community meeting held at the Virginia S. Tillett Community Center, 26 concerned residents turned out to air their worries regarding the proposed hike. However, when asked what an acceptable increase might be, Causey wasn’t ready to commit to a number, leaving many scratching their heads.
Digging into the recent history of homeowners insurance in North Carolina reveals a rocky road. In 2020, a less severe request for a 24.5% increase resulted in negotiations that ultimately settled for an average increase of only 7.9%. Even so, prior adjustments capped at 10% took effect as recently as January 2022.
So, what’s all this fuss about? Well, it turns out insurance companies are paying out more in claims than they’re raking in from the premiums. The current payout-to-premium ratio is a hefty $1.15 paid out for every dollar taken in. Talk about a business model that’s struggling!
Local feelings towards these proposed increases are anything but positive. Over 25,000 letters and emails have flooded into Causey’s office from an array of concerned citizens, local governments, and community organizations. Towns like Duck, Kitty Hawk, Kill Devil Hills, and Manteo have even taken the formal step of adopting resolutions against the hike, which they passed in January.
When it comes to concrete numbers, the proposed changes would hit Dare and Currituck counties with a 45.1% increase for beach communities and a 33.9% increase for those inland. Residents on the Beach Plan—the insurance plan that covers roughly 70% of homes along the coast—would see an additional 15% surcharge, pushing their total rate hikes up to around 60.1% for beach dwellers and 48.9% for inland homeowners.
In light of recent disasters like Hurricane Helene, which wreaked havoc with its devastating floods, the insurance landscape has become even more complicated. Nationwide recently decided to not renew over 10,500 homeowners’ policies in North Carolina, with about 1,000 nonrenewals occurring in the Outer Banks alone.
Industry experts, including representatives from the Outer Banks Association of REALTORS, have voiced concerns about the growing number of homeowners relying on the Beach Plan, acknowledging that it simply doesn’t compare to other more robust coverage options.
As the community braces for potentially sweeping changes, Causey has mentioned that the North Carolina legislature holds the reins on insurance regulation. He encouraged locals to raise their voices with their legislators, something that feels more vital than ever as rates continue to rise.
To make matters even more complex, this filing also includes a 4% increase for Haywood County following extensive flood damage. Plus, rental and investment homes on the Outer Banks might see a staggering 78.6% increase, with an average statewide bump of 50.6% being floated around.
Amid this whirlwind, Causey pointed to ongoing issues with insurance fraud as a significant contributor to rising premiums. As homeowners face mounting challenges with coverage and affordability, it’s clear that the road ahead may be bumpy.
As Manteo and its surrounding towns brace themselves for the possibility of dramatic changes in their insurance landscape, the coming months will surely be critical for many homeowners caught in the crosshairs of the insurance industry’s shifting tides. Keep your fingers crossed that they may weather this storm together!
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