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have you ever wondered why your home
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insurance bill keeps climbing even if
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you haven't made any claims the answer
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might surprise you and it's affecting
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millions of North Carolina homeowners
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right now starting June 1st homeowners
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in North Carolina will experience a
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significant change insurance premiums
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are set to increase by
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7.5% adding approximately
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$243 onto an average annual bill the
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reasons behind this increase include
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hurricanes flooding high lumber prices
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and rising labor costs this increase is
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actually split into two parts one
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happening now and another 7.5% scheduled
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for June 1st 2026 as part of the same
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settlement announced in January
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2024 it's important to note that this
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isn't just one company raising rates
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it's a statewide adjustment affecting
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most insurers operating in North
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Carolina the insurance industry
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initially proposed a substantial 42.2%
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2% increase but state regulators
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negotiated it down to the current though
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still significant 7.5% now and 7.5% next
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year the most recent homeowners
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insurance rate hike before this June 1st
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adjustment was an 8% average increase
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across North Carolina which took effect
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on November 1st 2024 for dwelling
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policies why are rates rising in North
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Carolina storms are becoming more
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destructive and coastal living comes at
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a price when hurricanes repeatedly
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damage neighborhoods flood damage is
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widespread and rebuilding costs are
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escalating due to rising materials and
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labor expenses while North Carolina
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isn't alone in facing higher insurance
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rates with states like Florida and
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Louisiana experiencing even steeper
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increases due to similar climate risks
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it's becoming the new normal for many
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states more weather related claims
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result in higher payouts for insurers
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ultimately leading to rate hikes across
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the board in North Carolina insurance
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companies don't raise rates
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independently they submit their
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proposals through the North Carolina
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Rate Bureau NCB which gathers data on
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claims history projected storm risks and
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increasing rebuilding costs the NCB then
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submits a rate hike request to the North
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Carolina Department of Insurance NCDOI
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for review the impact of these rate
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increases isn't uniform across the state
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coastal residents who face the highest
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risk from hurricanes are likely to
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experience even higher costs due to
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additional search charges based on
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location and specific risks rapidly
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growing areas like Raleigh and Charlotte
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may also feel increased pressure as
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rising property values drive up
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rebuilding costs currently the North
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Carolina insurance market is facing
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challenges climate change and rebuilding
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costs are outpacing insurers projections
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and companies are under pressure to
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maintain rates high enough to cover
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future disasters for homeowners this
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translates to fewer choices and tighter
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budgets resulting in a marketplace that
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feels increasingly expensive and
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uncertain let's recap the key points
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about the North Carolina home insurance
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rate increase first homeowners are
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facing a 7.5% rate hike starting June
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1st with another 7.5% increase scheduled
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2026 the increase is due to factors like
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hurricanes flooding and rising
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rebuilding costs this is a statewide
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adjustment affecting most insurers in
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North Carolina not just one company
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coastal residents and those in rapidly
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growing areas may face even higher costs
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due to additional risk factors thank you
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for watching our video on North
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Carolina's home insurance rate increase
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we hope this information helps you
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understand the changes and their impact
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on homeowners across the state
