Homeowners insurance rates in North Carolina are set to increase by an average of 15% by mid-2026 following a settlement between the state Insurance Department and the insurance industry. Commissioner Mike Causey announced the decision, which contrasts with the North Carolina Rate Bureau’s request for a 42.2% increase. Public hearings revealed that the demand for higher rates stems from high inflation and inadequate insurance coverage due to natural disasters. The approved increase will occur in two phases: a 7.5% hike on June 1, 2025, and another 7.5% on June 1, 2026, impacting areas differently based on regional risks. Areas severely affected by past hurricanes may see larger jumps, while others may have smaller increases. The settlement also prevents further rate hikes until June 1, 2027. The state’s insurance law enables high-risk homeowners to be insured at even greater rates to ensure market stability, as many insurers have exited disaster-prone regions.
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North Carolina Home Insurance Rates Projected to Rise 15% by 2026
