Where in North Carolina costs the most for home insurance?

Home Insurance Loophole

If you own your home, check your bill: Half of all insurance policies in North Carolina have a loophole disclaimer that leaves the customer paying up to hundreds of dollars more per year than state officials intend. We investigated to bring you answers.

Home insurance is getting more expensive in North Carolina.

Skyrocketing building material costs and a higher risk of natural disasters are making it more costly to provide coverage, industry experts say. As a result, the N.C. Department of Insurance — which regulates the cost of policies in the state — approved a statewide average rate increase of 7.9% earlier this year.

But there’s also a way that insurance companies can charge rates higher than those approved by state officials: a consent to rate policy.

These types of policies are becoming more common in North Carolina. In 2012, about 22% of premiums paid on residential property insurance came from a consent to rate policy, according to a study in the Journal of Insurance Regulation citing state data. Now, that number statewide and in the Charlotte region is around 50%, according to a new analysis by The Charlotte Observer.

On average, customers with a consent to rate policy paid $321 more on home insurance last year.

North Carolina’s insurance department data is broken down by insurance territories rather than counties, so you’ll see that reflected in the charts below.

Here’s where standardized rate increases were approved, going into effect June 1, 2022.

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Hannah Lang covers banking, finance and economic equity for The Charlotte Observer. Her work has appeared in The Wall Street Journal, the Triangle Business Journal and the Greensboro News & Record. She studied business journalism at the University of North Carolina at Chapel Hill and grew up in the same town as her alma mater.

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