COMMENT ON PROPOSED RATE INCREASES FOR DWELLING FIRE AND WIND POLICIES
COMMENT PERIOD ENDS FRIDAY, MARCH 23rd
The NC Rate Bureau submitted a Filing to the NC Department of Insurance (NCDOI) last month to increase DWELLING Insurance rates for fire and extended (wind) coverage 18.9% overall statewide. Dwelling policies are different from Homeowner policies. Dwelling policies typically cover second homes, vacation rental homes or year-round rental homes.
While the Filing reflects decreases in the fire rate, the extended (wind) coverage rates are proposed to increase over 58% in the mainland portions of Dare and Currituck Counties; 38% in the barrier island areas of Dare and Currituck Counties. Fire rates are typically much lower than wind rates - sometimes as little as 7% of the total rate - and this filing will have tremendous impact on Dwelling and Dwelling Wind Only policies written through the NC Insurance Underwriters Association (NCIUA), commonly referred to as the Coastal Property Insurance Pool. NCIUA polices are surcharged over and above the maximum rate approved by the Department of Insurance.
The Rate Bureau is requesting the following Dwelling policy rate changes based on $15,000 Coverage, Base Class is Form DP-001, to become effective on October 1, 2018:
|Territory||Territory Definition||% Rate Change Request Fire/Wind||$ Current Dwelling Fire/Wind Rate||$ Proposed Dwelling Fire/Wind Rate|
|110||Beach areas of Currituck, Dare & Hyde Counties||-0.1/+38.5||$17/$143||$17/$198|
|130||Coastal areas of Currituck, Dare, Hyde & Pamlico Counties||-25.7/+58.3||$42/$105||$31/$166|
|150||Coastal areas of Beaufort, Camden, Chowan, Craven, Jones, Pasquotank, Perquimans, Tyrrell, & Washington counties||-20.4/+20.8||$37/$107||$29/$129|
We are providing a letter (follows this alert) that you can send directly to the NC Department of Insurance asking them to deny these rate increases.
After the public comment period closes on March 23rd, the Department of Insurance has 50 days to respond to the Rate Bureau. If the Insurance Commissioner does nothing, the new rates will become effective on October 1, 2018. The Commissioner can negotiate a settlement on the filing which in years past has resulted in less than the Rate Bureau’s proposed increases. The NC Insurance Commissioner also has the option to deny the filing which would result in a hearing/trial being held on the filing.
The public comment period ends this Friday, March 23rd.
IT IS IMPORTANT THAT NCDOI HEAR FROM YOU!
PLEASE EMAIL YOUR COMMENTS ASAP TO 2018DwellingandFire@ncdoi.gov.