Insurance Commissioner Mike Causey announced on Apr. 22 that the North Carolina Department of Insurance has reached a settlement with insurance companies regarding dwelling rates in the state.
The issue is important because it affects the cost of insuring rental and investment properties across North Carolina. The settlement will result in an average statewide increase of 5% per year over the next two years, significantly lower than what was initially requested by insurers.
According to Causey, “I am happy that we have been able to save North Carolina consumers more than $268 million over what the insurance companies requested. I am delighted that many property owners who invest in fortified homes and roofs will be able to save on their insurance premiums.” The N.C. Rate Bureau, which represents property and casualty insurance companies but is not part of the Department of Insurance, had filed for a much larger overall increase of 68.3% over two years on Oct. 30, 2025.
The first phase of the agreed-upon increase—5%—will take effect on Oct. 1, 2026, followed by another 5% increase on Oct. 1, 2027. These figures are averages statewide and may vary depending on territory within North Carolina.
As part of the agreement, mitigation credits will be available for consumers who upgrade their homes or roofs to withstand high winds in certain eastern territories—a measure intended to help reduce potential storm damage costs for both insurers and policyholders.
With this settlement in place, a previously scheduled hearing about dwelling rate increases set for July 6 has been canceled.
