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WNC Homeowners to See Modest Insurance Rate Increases Amid Statewide Hikes
North Carolina -- January 20, 2025: Homeowners in Western North Carolina will experience relatively modest increases in home insurance
rates compared to the rest of the state, following an agreement announced Friday by Insurance Commissioner Mike Causey. The settlement, reached with the North Carolina Rate Bureau, will raise base insurance rates statewide by an average of 15% by mid-2026.. However, due to the region’s lower risk of hurricanes and severe flooding, the rate hikes in Western North Carolina will be smaller than those in coastal areas.
How the Increases Will Impact Western North Carolina
For Western North Carolina homeowners, the rate changes will be implemented in two phases:
For Western North Carolina homeowners, the rate changes will be implemented in two phases:
June 1, 2025: An average increase of 4.4%.
June 1, 2026: An additional average increase of 4.5%.
These increases are significantly lower than the statewide average and far less than the steep hikes expected in coastal areas. Counties like Buncombe, Watauga, Yancey, and others in the mountains are less prone to catastrophic weather events driving higher insurance costs in other parts of the state.
June 1, 2026: An additional average increase of 4.5%.
These increases are significantly lower than the statewide average and far less than the steep hikes expected in coastal areas. Counties like Buncombe, Watauga, Yancey, and others in the mountains are less prone to catastrophic weather events driving higher insurance costs in other parts of the state.
The Situation on the Coast
While homeowners in Western North Carolina can expect more moderate adjustments, those in coastal regions will face substantial increases.
For example:
For example:
Coastal counties such as Carteret and Brunswick will see hikes of 16% in mid-2025 and an additional 15.9% in mid-2026.
These dramatic increases reflect the rising costs of insuring properties in areas at high risk of hurricanes, flooding, and other storm-related damage. As extreme weather events become more frequent and severe, insurers are adjusting rates to cover higher claims and rising reinsurance costs.
Why Are Rates Increasing Statewide?
The North Carolina Rate Bureau, which represents insurance companies, initially proposed a 42.2% statewide rate increase earlier this year, citing several factors:
Inflation driving up the cost of materials and labor for repairs.
Rising natural disaster claims, particularly from hurricanes and flooding in coastal areas.
Higher reinsurance costs for insurers to manage their own risks.
The settlement negotiated by Commissioner Causey significantly reduced the proposed rate hike to an average of 15% over two years. Causey emphasized that while any increase is difficult for homeowners, the adjustments are necessary to maintain the financial stability of insurers and ensure they can pay claims after major disasters.
Rising natural disaster claims, particularly from hurricanes and flooding in coastal areas.
Higher reinsurance costs for insurers to manage their own risks.
The settlement negotiated by Commissioner Causey significantly reduced the proposed rate hike to an average of 15% over two years. Causey emphasized that while any increase is difficult for homeowners, the adjustments are necessary to maintain the financial stability of insurers and ensure they can pay claims after major disasters.
What This Means for Western North Carolina Homeowners
The more moderate increases in Western North Carolina reflect the region’s relative safety from major natural disasters compared to the coast. However, homeowners in the area should still prepare for slightly higher premiums over the next two years. Here’s how to manage the impact:
Review Your Policy: Make sure your coverage is up-to-date and aligns with your current needs. Adjust for changes in property value or renovations.
Look for Discounts: Many insurers offer savings for bundling home and auto insurance, installing security systems, or investing in energy-efficient upgrades.
Consider Risk Mitigation: While natural disasters are less common in the mountains, upgrading your home’s infrastructure, such as roof reinforcements, can help reduce premiums.
The Bigger Picture
While Western North Carolina’s increases are modest, the phased statewide hikes are part of a larger trend. Across the U.S., homeowners are facing rising insurance costs due to economic pressures and the increasing frequency of natural disasters. North Carolina’s average premium, currently around $2,941, already exceeds the national average of $2,601, and the new hikes could push rates even higher.
Consider Risk Mitigation: While natural disasters are less common in the mountains, upgrading your home’s infrastructure, such as roof reinforcements, can help reduce premiums.
The Bigger Picture
While Western North Carolina’s increases are modest, the phased statewide hikes are part of a larger trend. Across the U.S., homeowners are facing rising insurance costs due to economic pressures and the increasing frequency of natural disasters. North Carolina’s average premium, currently around $2,941, already exceeds the national average of $2,601, and the new hikes could push rates even higher.
Still, Western North Carolina remains more affordable than many parts of the state, particularly the coast, where premiums are expected to surge significantly. This reflects the broader risk profile of the region, which is less impacted by hurricanes, storm surges, and flooding.
Key Takeaways for Western North Carolina
Smaller Increases: Homeowners in Western North Carolina will see more modest rate hikes of 4.4% in 2025 and 4.5% in 2026 compared to coastal areas.
Lower Risk Area: The mountains are less vulnerable to catastrophic weather, keeping insurance costs comparatively stable.
Prepare Early: Reviewing policies and exploring ways to save on premiums can help homeowners adjust to the changes.
While the upcoming increases are a reminder of rising costs across the state, homeowners in Western North Carolina can take some comfort in knowing their region remains one of the more affordable places to insure a home in the state.
Prepare Early: Reviewing policies and exploring ways to save on premiums can help homeowners adjust to the changes.
While the upcoming increases are a reminder of rising costs across the state, homeowners in Western North Carolina can take some comfort in knowing their region remains one of the more affordable places to insure a home in the state.
Sources
North Carolina Department of Insurance: ncdoi.gov
Associated Press: apnews.com
Insure.com: insure.com
WNCTimes
Image: WNCTimes
