Homeowners’ insurance rates went up over the weekend, making owning a home in North Carolina more expensive.

Rates increased on average by 7.5% as of June 1 and will rise another 7.5% on June 1, 2026. The increases were part of an agreement between North Carolina Insurance Commissioner Mike Causey’s office and the North Carolina Rate Bureau (NCRB), which represents homeowners’ insurance companies in North Carolina. He announced the agreement in January.

The increase is significantly lower than the 42.2% rate increase the NCRB was originally seeking.

In addition, the agreement prohibits the Rate Bureau from undertaking an effort to increase rates again before June 1, 2027.

The request was made in January 2024. A multitude of homeowners and others from across the state voiced their concerns at a public comment forum on Jan. 22, 2024, and by email and mail.

As expected, no one was in favor of the increase, which could have seen rates in coastal areas, like Swansboro in Onslow County go as high as 71.4% and 99% in places like Emerald Isle.

Those in the mountains were expected to see the lowest increase between 4%-20%, although that number may change within the context of the extreme flooding the area saw from Helene.

The new updated rates can be viewed here.

Causey told Carolina Journal in an interview in January that once his office finds out about a proposed rate hike, they notify the press and ask for public comment. Most, if not all, comments are not in favor of a rate hike. By state law, the insurance commissioner then sets up a court hearing date about ten months out.

In the meantime, as granted by statute, the insurance commissioner can negotiate settlements if the insurance industry is willing to enter into those negotiations. When settlements were negotiated, he said they have been very favorable to consumers. That means a win for consumers and the state, which can save on court costs of a lengthy hearing.

This time, however, both sides were so far apart, Causey told CJ, they couldn’t make any progress in negotiations.

In a January press release, he said homeowners will save, on average, approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested.

“These rates are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims.”

Tips on lowering homeowners’ insurance premiums

Homeowners can take steps to lower their insurance premiums. According to the National Association of Realtors, one of the best ways is to shop around, as quotes on the same home can vary significantly from company to company. They also offer the following suggestions:

• Maintain good credit. Insurers often use credit-based insurance scores to determine premiums.
• Buy homeowner’s and auto policies from the same company, as companies will often offer a bundling discount.
• Raise the deductible. If a person can afford to pay more toward a loss that occurs, their premiums will be lower. Also, avoid making claims for losses of less than $1,000.
• Seek group discounts. If a person belongs to any associations or alumni organizations, they should check to see if they offer deals on coverage.
• Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. They may also be able to obtain discounts for having smoke detectors, a security system, and smart locks.
• Conduct an annual review. Take a look at policy limits and the value of the home and possessions every year. Some items depreciate and may not need as much coverage.
• Investigate a government-backed insurance plan. In some high-risk areas, there may be a government-backed plan to lower rates; in some cases, that plan may be the only option.
• Insure your house for the correct amount. Insurance covers replacement costs, not market value.