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North Carolina Homeowners Insurance continues to see upward rate pressure.

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What’s going on?
 
North Carolina homeowner rates continue to be inadequate for the current exposure in the state.
 
Like many parts of the country, North Carolina has been impacted by more extreme weather events than usual.
 
Large parts of North Carolina have suffered both numerous and major storms in the last 5 years which have created historically record losses.  After consecutive years of large losses, Homeowners companies are taking steps to correct rates so that they adequately cover the North Carolina Home Insurance exposure.
(On a side note one of our Auto Insurance Carriers has not had an overall Auto rate increase since 2004)
 
In addition, North Carolina has a unique challenge because of the underfunded beach plan. In many cases the premiums are not sufficient to adequately cover the huge hurricane exposure along the North Carolina coast. This creates a large potential risk for all Insurance Carriers who write Homeowners insurance in the state of North Carolina. In the event of a catastrophic loss most Home Insurance carriers would be required to fund this under insured exposure leaving them with the potential for massive losses.
 
So how are Home Insurance carriers responding?
              Some companies have left the state.
              Some companies have ceased writing Homeowners Insurance.
              Some companies will only write your Homeowners Insurance if you write
              your Auto Insurance with them.
              Some companies have increased the minimum policy deductible.
              Some companies now have a separate and higher wind/hail deductible.
              Most companies are taking rate increases on Both Home AND Auto.
              Some companies are non-renewing mono-line Homeowners policies.
 
Most increases insured’s are seeing on Homeowners Insurance Premiums are a result of across the board increases.
 
However, many insurance companies have developed more and more sophisticated pricing models that are also impacted by insured specific items.
 
What are some insured specific items that can impact your individual rate?
              Your Deductible Limit
              Age of your Home
              Your Insurance Score (used to determine the risk of individual insured’s based on
              a multitude of variables)
              The number of losses and claims you have submitted
              The county your home is located in
              The construction type of your home (Frame, Masonry Veneer, etc.)
              Alarm types
              Protection Class- based on proximity of Fire Hydrants and Fire Departments and
              their ability to respond to a fire
 
What can you do to help reduce your Homeowners Insurance Rates?
              Increase your deductible. Insurance is meant to cover the losses you cannot
              possibly cover on your own. It is not meant to be a maintenance policy.
              Some approximate savings %’s (of course each Insurance Company and individual
              will vary)-
                    Deductible Now               New Deductible       Average Approximate Savings
                             $500                                  $1,000                               -13%
                             $500                                  $1,500                               -24%
                             $500                                  $2,500                               -35%
 
                             $1,000                               $1,500                               -12%
                             $1,000                               $2,500                               -25%                                 
              Combine your Home and Auto Insurance coverage with the same Insurance
              Company when possible. Most Insurance companies offer a multi-policy discount
              on both policies and it can really be significant on the Homeowner’s policy.
 
              Consult with your agent before turning in claims. We are here to help you make
              an informed decision about whether there is coverage, whether the loss is
              greater than your deductible and the possible impact of turning in a claim
              on future rates  and coverage.
 
              Deal with an Independent Insurance agent. As an Independent Insurance agent
              we do our best to match you with the best Insurance Carrier for your individual
              needs. We are consumers too, and we do everything we can to help maximize
              your coverage and keep your insurance rates as low as possible.
             
We hope this provides you a better understanding of what is going on with the North Carolina Homeowners Insurance market.
 
If you have additional questions please feel free to contact our agency at-
              Service@AllenAndBallard.com
              or at 704-795-7801.
 
Again, thank you for allowing us to serve your insurance needs.
 
Your Allen and Ballard Insurance Team
 Filed Under: Blog, Home Insurance, Homeowners Insurance