The prolonged tussle over mobile home insurance rates in North Carolina has reached a settlement. News broke that the Department of Insurance and the North Carolina Rate Bureau have agreed to a compromise that is set to increase insurance rates for mobile homes, but at a much lower rate than initially proposed by the insurance companies. The Rate Bureau, representing insurers in the state and operating independently from the Department of Insurance, initially put forward a rate hike request that stirred concern amongst policyholders.
Policyholders can breathe somewhat easier now with the official announcement. The settlement will lead to an 11% per year increase over the next two years for Mobile Home Fire (MH-F) policies and 8% for Mobile Home Casualty (MH-C) policies. This is a significant reduction compared to the original suggestions that sought to drastically to raise rates by 82.9% and 49.9%, respectively. The Department of Insurance states that these figures represent major savings for North Carolina's mobile homeowners.
Insurance Commissioner Mike Causey expressed his contentment with the outcome, stating, “I am happy to announce that North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested," according to the announcement on the Department's website. The Commissioner also highlighted the avoidance of what might have been “a lengthy, expensive administrative legal battle.”
The agreed-upon rate increases will be implemented in two phases, with the first set becoming effective on new and renewed policies starting September 1, with the second set following on August 31, 2026. This agreement also stipulates that the insurance companies cannot seek to further increase rates before September 1, 2027. These changes are estimated to affect roughly 148,000 policyholders across the state.
It should be noted that unlike standard homeowners’ insurance, both MH-F and MH-C policies include flood coverage as part of their packages, with the MH-F offering a broader range of peril coverage. This distinction is critical for mobile homeowners, particularly in areas prone to flooding and other natural disasters. As this settlement takes effect, North Carolinians who own mobile homes will need to adjust their budgets to accommodate the incoming rate increases, albeit smaller than the ones initially proposed.
