This is a confusing and stressful time for North Carolinians as we begin 2024 with massive proposed rate increases on all homeowners’ insurance policies.

The team at Flatlands Jessup Insurance Group aims to be a source of understanding and knowledge for the hard-working people of eastern North Carolina.

Please find below helpful links and information you may find important. As always, if you have more specific questions and concerns, please give us a call at 252-495-8956 or email us at info@flatlandsjessup.com.

 

Frequently Asked Questions

 

Are the rates finalized at this time?  

• • Not at all. Historically the NC Rate Bureau has recommended high increases and settled for much lower increases.
  • The Commissioner denied the proposed increase, so now a negotiating period will begin.

 

If the rates had passed as currently proposed, the amount that I have to pay would have gone up 42%?

• • No. I know it is confusing, but rates are only one factor when determining premium.

 

What is the difference between an insurance premium and an insurance rate?

• • Insurance Premium is your the cost you pay to maintain insurance coverage. This money goes to the insurance carrier.
  • Insurance Rate is the percentage of the overall exposure cost that insurance carriers charge. This is only one of many factors that determine your premium.
  • Even if insurance rates were to rise 42%, that doesn’t mean that your premium will rise 42%.

 

Which insurance carriers are increasing their costs? 

• • Unfortunately ALL insurance carriers will be increasing their cost over time once a rate increase is finalized. This means in most cases, looking to switch carriers won’t save as much money as you might hope as the price changes are industry-wide.

 

What is the difference between an insurance carrier and an insurance agency? 

• • Insurance Carriers are typically the companies you see national ads for like Progressive, Nationwide or Liberty Mutual. They are the ones who receive your premium payments and pay out claims. If you reach out to one of these companies directly to get policy options, you will only get rates from their company. This means you may miss out on the cheapest rates or the best coverage for you.

• • Insurance Agencies on the other hand, like Flatlands Jessup, are different. Since we are independent and non-exclusive with any one insurance carrier, we can shop around your needs (at no additional cost to you) from multiple companies to ensure you’re getting the best coverage possible. Agents are required to undergo rigorous licensing, training and continuing education to maintain access to the different insurance carriers meaning we can be an excellent resource when you are confused and need unbiased advice.

 

What was the exact proposed increase for my county by the NC Rate Bureau? 

• • Please see the chart below for more information.

Has a price increase like this ever occurred before? 

• • In November of 2020, the NC Rate Bureau requested a 24.7% price increase for homeowners’ policies. Upon negotiation, the final increase ended up being 7.9% (source).

 

Is Wind & Hail included in the rate increases?

• • No, just the standard Homeowners insurance cost will be rising.

 

What does the NC Rate Bureau do?

• • The North Carolina Rate Bureau is responsible for filing rates, rules and forms for approval by the Commissioner of the Department of Insurance (DOI). It also monitors legislative activity and industry trends as well as providing statistical and compliance services.

 

Has the Commissioner from the DOI publicly commented on this topic? 

• • Commissioner Mike Causey released a video explaining the situation from his perspective. Click the link HERE for his 3-minute video.
  • Since the video above, he denied the originally proposed rate increase so a negotiating period will begin.

 

Why can’t the Department of Insurance just deny any proposed rate increase? 

• • In states like Florida, many insurance companies have decided to exit the state entirely. With less competition comes oligopolies that can strategically control rates and drive-up prices on consumers. Some Floridians are finding it is too expensive to have insurance at all and are relying on hope and prayer as opposed to insurance. The goal is to avoid that in North Carolina.
  • Since the Commissioner denied the 42% average statewide increase, there are now indefinite re-negotiations that will take place to see what the actual increase will be.

 

As we have more access to information, we will update this page. Please reach out any time with questions!

Phone: 252-495-8956

Email: info@flatlandsjessup.com