Insurance Costs Skyrocket in North Carolina

Last week, the North Carolina Insurance Rate Bureau filed a request with the NC Department of Insurance to increase insurance rates by an average of 42%!! This could have huge implications for cost of living in the state of North Carolina. Join me live to discuss what's happening, what isn't happening and what it really means for housing costs in North Carolina!

[@13noman1]

Thanks. I'm fine with folks electing to live in high risk (i.e. coastal areas) having to shoulder higher insurance costs. A bit perplexed by the relatively high rate requests in the Raleigh market.

[@EllenPitts]

It won't get approved, but the reason they're going up is because the cost of rebuilding is increasing due to inflation. If your house burns down, the cost to rebuild it is higher than it was 3 years ago. :(

[@BloomByCC]

That is perplexing, I agree. I'd think coastal would be much higher 🤔

[@TruthOpinion]

Is there a link to your sheets?

[@asdf234556]

Thank you, one topic that I suggest is forecast for 2024 housing market in RTP area

[@EllenPitts]

I actually just finished writing it!! Should be published Thursday!!

[@richarddelotto2375]

Thanks--

[@EllenPitts]

Glad it was helpful!

[@danielboen4923]

Great information, but this makes me miss living back in Kansas!

[@EllenPitts]

Kansas has way higher insurance prices!! $2200 above the national average!

[@stebethstar100]

Thx Ellen. Had no idea about rates potentially going up that much. Most likely it will probably average out to about 20%. Would be interested to see a video/live on the 2024 property tax increase around here. Specifically, how the average increase impacts homeowners,and what do the local and county municipalities do with such a huge windfall? I lived through this in Seattle a few years ago when our home value ( and property tax increase) went from 650K to 1.1 million in just one calendar year. Needless to say we were shocked. Meanwhile it seemed that good and services did not noticeably and proportionally increase. Where did all that new revenue go?

[@EllenPitts]

That’s a great idea!! I’ll add it to my list!

[@johnlabus7359]

My experience in the past has been that when the tax valuations significantly rise, the tax rate adjusts accordingly. On average that has meant that the millage has gone down. It's also been my experience that if you live in a desirable location that's appreciating faster than the average across the county/city, the property tax bill will reflect that. The same is true for parts of the county that are appreciating more slowly. Those areas may see a slight decrease in their annual bill. This has been my experience over the last few decades, and I am expecting something similar this time around.

[@TruthOpinion]

If rate hikes are not granted the insurance companies will stop 🛑 doing business.

[@TruthOpinion]

More than inflation isn’t it because of fema rating changes? Inflation can be adjusted by updating replacement cost in the insurance.

[@EllenPitts]

But the rate is tied to how much it costs them for replacement. So if replacement costs go up, the rate has to go up as well. The person I spoke with didn’t say anything about fema rating changes.

[@andretigiovaneti7587]

No good 😢.

[@rickynorris1694]

This insurance increase is not helpful for homebuyers/owners. I would suggest that these insurance companies stop advertising so much. They would probably save millions of dollars per year. They could pass the savings on to the ratepayers m