Insurance costs in North Carolina could see a significant hike if a proposed rate increase for dwelling insurance goes into effect. The North Carolina Insurance Commissioner Mike Causey has called for a hearing on a proposed 68.3% increase in dwelling insurance rates, a move that has stirred concern among residents and policymakers alike. This hearing is set for May 4, 2026, as was reported by a press release from the Department of Insurance.
According to Commissioner Causey, the Rate Bureau's proposed increase, filed earlier this fall, is not acceptable. "We are not in agreement with the Rate Bureau's proposed increases filed earlier this fall," he stated on the same press release. The hearing, slated to occur unless a settlement is reached beforehand, is now necessary to "The next step, according to statute, is to set a hearing date. It is now necessary to schedule a hearing in order to work toward a resolution that will make the most financial sense for our residents and insurance companies." The scheduled meeting will take place at the Department of Insurance in Raleigh at 3200 Beechleaf Court, kicking off sharply at 10 a.m.
Causey's office has the power to negotiate with the North Carolina Rate Bureau (NCRB), and the two entities have the option to settle at any point, even during ongoing litigation. If a resolution is not reached and the hearing proceeds, Causey has 45 days from the hearing’s conclusion to issue a decision. Post-decision, the NCRB could potentially challenge the outcome before the North Carolina Court of Appeals, and further on to the N.C. Supreme Court if necessary.
Under the NCRB's proposal, residents across North Carolina would experience the financial burden of increased rates, most facing double-digit percentage increases. The NCRB's last filing for a dwelling rate increase was in July 2023, when they requested an average statewide increase of 50.6%. However, negotiations at that time yielded an 8% increase, which was implemented on November 1, 2024. Dwelling insurance differs from standard homeowners insurance in that it applies to non-owner-occupied properties with up to four units, including rental and investment homes. State regulators and consumers are awaiting the outcome of the proposed rate increase and the May hearing, which could affect property insurance costs across North Carolina.
