Nearly 150,000 mobile home policyholders in North Carolina will have to wait almost a year to learn if their insurance costs will rise. The North Carolina Rate Bureau proposed substantial rate increases on April 8, seeking an overall state average hike of 82.9% for mobile home fire policies and 49.9% for mobile home casualty policies over the next three years. The Rate Bureau, representing insurance companies, operates independently from the North Carolina Department of Insurance.
Despite the similarities between the two types of insurance, including flood coverage, fire policies cover a broader range of perils, according to state officials. Due to a disagreement with the Rate Bureau’s proposal, Insurance Commissioner Mike Causey has scheduled a hearing for 10 a.m. on April 7, 2025, at the Department of Insurance building in Raleigh.
“We do not agree with the insurance companies’ proposed increases,” Causey announced this week. “A hearing is necessary to reach a resolution that is financially sensitive for both our residents and the insurance companies.”
The hearing will proceed unless a settlement is negotiated before hand. By law, the commissioner has 45 days post-hearing to issue an order. The Rate Bureau can appeal this decision to the N.C. Court of Appeals, and further to the state Supreme Court if necessary. Negotiations can continue throughout the litigation process.
The proposed increases for mobile home fire policies are 24.9% for 2024, 21.2% for 2025, and 20.9% for 2026. For mobile home casualty policies, the requested increases are 15.9% for 2024, 13.9% for 2025, and 13.5% for 2026 The Rate Bureau aims for these hikes to take effect on November 1 of each respective year.
A public comment period on the proposed rate increases was held in April. The last rate increase filing by the Rate Bureau in 2022 resulted in settlements of 10% for mobile home casualty policies and 15% for mobile home fire policies, which took effect on August 1, 2023.
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