News Summary
Residents of North Carolina’s Outer Banks, including Kill Devil Hills, are facing an average homeowners insurance rate increase of 42.2%. This alarming trend, indicated by the North Carolina Rate Bureau, has left locals frustrated, particularly long-term residents like Kim Lafountaine. The insurance industry cites natural disasters and rising reinsurance costs as factors for these hikes. Community leaders express concerns this could threaten housing affordability and the local economy, prompting public forums and a rally against the proposed rates. The community stands united, with thousands voicing their opposition.
Homeowners in North Carolina’s Outer Banks Face Shocking Insurance Rate Hikes
Residents in the charming coastal paradise of Kill Devil Hills and surrounding areas are bracing themselves for a proposed average increase in homeowners insurance rates of 42.2%. This alarming news, presented by the North Carolina Rate Bureau—which represents insurance companies—is hitting homeowners hard and sparking serious concern within the community.
Worries Rise as Costs Climb
The proposed hike is causing quite the stir, with many locals feeling that enough is enough. It reflects a longer trend of rising insurance costs that has steadily been on the uptick lately. Many homeowners have taken to voicing their frustrations, especially long-term residents who feel that their loyalty to their homes is being overlooked. Residents like Kim Lafountaine, who has called Kill Devil Hills home for nearly 30 years, are particularly upset. Having never made a claim, she can’t understand why her rates continue to rise.
The Insurance Industry’s Perspective
Industry insiders, like Chip Phillips from Island Insurance in Manteo, are expressing their bewilderment too. He notes that these increases are some of the largest he has encountered in his two decades working in the field. But what’s behind these considerable hikes? Experts indicate that several recent natural disasters have driven up the overall costs for insurance companies, forcing them to adjust rates. Coupled with soaring reinsurance costs, these businesses are left with no choice but to pass the expenses on to consumers.
Community at Risk
The repercussions of these rising premiums extend beyond just homeowners. Greg Green from Village Realty points out that the ongoing increase in insurance costs could threaten the housing market’s viability and affordability. It’s creating a worry for potential new residents, like teachers and community workers, who are crucial for the well-being of local life. If they can’t afford to move into the area due to skyrocketing insurance rates, the community could suffer greatly.
A Call to Action
Public Forums and Voices Rising
To give everyone a chance to express their concerns, the North Carolina Department of Insurance is organizing a public comment forum in Raleigh on a designated Monday. For those who can’t make it, email submissions are welcome until February 2. Just as importantly, the Rate Bureau is pushing to have these new rates effective by August 1. A court review date is also set for October 7, indicating that this is far from over.
Overwhelming Opposition
So, how do residents feel about these increases? The response has been staggering—with more than 25,000 letters, emails, and calls received opposing the hike! In fact, local towns and county boards have sprung into action by adopting resolutions against the proposed changes, demonstrating just how unified the community is in their disdain for these rate hikes.
Specifics of the Proposal
The proposed increases vary, with a whopping 45.1% hike slated for residents in Dare and Currituck counties’ beach communities, while inland areas face a 33.9% increase. Furthermore, the Beach Plan, which covers about 70% of the homes in coastal counties, includes a mandated 15% surcharge, meaning these hikes could hit beach community homeowners particularly hard. Recently, there was also talk about another proposed dwelling rate filing suggesting an average increase of 50.6%, which could see Outer Banks policies soar by an astonishing 78.6%.
Navigating the Future
With insurance companies currently paying out more in claims than they receive in premiums, everyone is left wondering what lies ahead. There are many factors to consider, including an increase in insurance fraud that is complicating matters further. Residents are left hoping for a favorable resolution that balances affordability with the realities of the insurance market in their beloved Outer Banks.
Deeper Dive: News & Info About This Topic
HERE Resources
Manteo Faces Homeowners Insurance Rate Increases
Manteo Residents Face Potential 42.2% Homeowners Insurance Rate Hike Amid Growing Concerns
New Legislation Offers Lifeline to Coastal Homeowners Facing Erosion Risks
Rodanthe, North Carolina Faces Crisis as Coastal Erosion Claims More Homes
Rodanthe Faces Slow-motion Catastrophe as Homes Fall into the Atlantic
Devastating Coastal Erosion Threatens Homes in Rodanthe, North Carolina
Additional Resources
- Pilot Online
- WTKR News
- Fortune
- The Coastland Times
- Star News Online
- Wikipedia: Insurance
- Google Search: Insurance Rate Hikes North Carolina Outer Banks
- Google Scholar: North Carolina Insurance Rates
- Encyclopedia Britannica: Insurance
- Google News: Outer Banks Insurance Hikes
