The North Carolina Insurance Commission came to a settlement yesterday with the state's homeowners insurance companies that allows the companies to increase premiums. The average increase, across the state, is 7%. Ocracoke's increase will be 17%. (It's even more down sound, where rates will go up 19.8%.) Rates in Durham and Raleigh will increase by 2.8%.
The insurance companies say they need the increased revenues because of the risk of hurricane damage and coastal flooding in the regions that will pay the big increases.
The Raleigh News and Observer has the whole story here.
They used a photo of the hurricane-buckled Highway 12 in Rodanthe (the repair of which is not covered by homeowners insurance) to illustrate their story; we'll show you some storm damage in Raleigh.
Rep. Paul Tine sent the Current a statement about the rate increase right away. Here's what he has to say: "I am very disappointed in the rates settlement announced by Commissioner Goodwin today. While our beach communities received a 17% to 19.8% increase, more populated areas received as little as 1.1%. Historical data does not support the assertion that inland residents are paying for the losses of coastal communities. However, that assertion appears to be guiding the decisions made in our legislature and at the Department of Insurance. Our economy in the East is suffering while our cost of living continues to rise. It is long past time that we develop a fair rate system that is based in historical data, not conjecture."
What do you think?
