Following a request that would have significantly raised rates charged to cover mobile homes across North Carolina, state Insurance Commissioner Mike Causey has announced a settlement has been reached that will still lead to policies costing more starting this fall.
The North Carolina Rate Bureau, which represents companies writing insurance policies in the state, had requested last October a increase that averaged statewide of 87.5 percent for Mobile Home-Fire and 53.4 percent for Mobile Home-Casualty. The increases would have stair stepped over a two-year period.
That request would have placed the highest rate increases in coastal sections of North Carolina, with rates in the territory covering Dare, Currituck and Hyde counties (Territory 1) going up by 126 percent for fire policies, and 77.7 percent for casualty, by 2024.
For the rest of interior counties in northeastern North Carolina (Territory 2), the hikes would have totaled 75.8 percent for fire and 45.9 percent for casualty.
On Tuesday, Causey announced his office had reached a settlement of an overall statewide increase 15 percent for MH-F and 10 percent for MH-C for new and renewing policies starting on October 1.
“I am happy to announce that North Carolina Mobile Homeowners will save over $71 million in premium payments compared to what the NCRB had requested,” Causey said in a statement. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
In Dare, Currituck and Hyde counties, Mobile Home-Fire policies will increase by 28.9 percent, while Mobile Home-Casualty policies will increase by 14.2 percent.
For the rest of interior counties in northeastern North Carolina (Territory 2), the hikes will be 16.1 percent for MH-F. MH-C policies will go up 5.7 percent.
The request came after the NCRB and Insurance Commissioner Mike Causey reached a settlement for rates that went into effect in 2021 of 25 percent in Dare, Currituck and Hyde and 17.5 percent for MH-F polices.
That settlement led to MH-C polices increasing 14.8 percent in Dare, Currituck and Hyde, and 6.3 percent for the rest of the region.
Both MH-F and MH-C programs provide property and liability coverage. Unlike standard homeowners’ programs, both the MH-F and MH-C programs include flood coverage. The two programs are similar. However, the MH-F program provides coverage for a broader range of perils.