Southeastern North Carolina homeowners will see double-digit increases in insurance rates over the next two years, but the hikes are significantly smaller than what insurers initially sought.
Breaking it Down: On January 17, Insurance Commissioner Mike Causey announced a settlement with insurance companies, ending a legal dispute over proposed rate increases. While the statewide average base rate will rise by 7.5% in both 2025 and 2026, coastal areas will see higher hikes.
- In most of the Cape Fear region, rates will increase 10.5% in 2025 and 10.1% in 2026.
- Beachfront properties will face steeper hikes of 16% and 15.9% in those years, though this is far below the 99.4% hike initially requested by insurers.
Why it matters: Homeowners in southeastern North Carolina avoided drastic rate hikes while insurers secured higher premiums to address rising costs from natural disasters and reinsurance.
- Causey estimates the settlement will save homeowners approximately $777 million over two years and prevent further base rate increases until June 2027.
What they’re saying: “This agreement ensures insurance companies have adequate funds to pay claims while protecting homeowners from unaffordable rate increases,” said Causey, calling the settlement a win for residents and the industry.
The bottom line: Although no one expected a 100% increase, limiting coastal hikes to just over 30% over two years is a notable success for homeowners in southeastern North Carolina.
