Congressmen urge commissioner to deny home insurance rate hike

At a time of continued inflation, Congressman Richard Hudson joined the North Carolina Congressional Delegation in urging N.C. Insurance Commissioner Mike Causey to reject the proposed increases in homeowner insurance rates.

In Harnett County, insurance companies with the North Carolina Rate Bureau are asking for an increase of 39.9% in rates. In Johnston County, the proposed increase is listed at 40.8%. Homeowners in Sampson and Cumberland counties are looking at a 45.5% increase.

The average rate hike, statewide, is 42.2% with an increase as high as 99% targeting homeowners in coastal areas.

North Carolina Insurance Commissioner Causey has the authority to accept or reject the Rate Bureau’s proposal. In 2020, he rejected the North Carolina Rate Bureau’s initial request for a 24.5% rate increase and negotiated it down to 7.9%.

“President Biden’s failed policies have led to historic inflation and higher interest rates, making living expenses more costly for families in the Sandhills,” said Rep. Hudson (R-NC). “Raising insurance rates will only make the situation worse. I urge NC Insurance Commissioner Causey to intervene, reject these proposed hikes, and work with stakeholders to find a better solution.”

The buying power of a dollar in January 2000 had the buying power of $1.82 in December, according to the U.S. Bureau of Labor Statistics’ inflation calculator. It now takes $1.82 to buy the energy and food that a dollar could have bought 23 years ago.

“The proposed surge in homeowner insurance rates will crush Eastern North Carolinians, particularly those residing along the coast,” said Rep. Greg Murphy, M.D. (R-NC). “Record inflation and historic interest rates have already skyrocketed the cost-of-living for folks across the country. Increasing rates dramatically will supercharge this crisis and make homeownership even more difficult to attain. I urge Commissioner Causey to exercise his authority to deny these rate hikes and work to establish a constructive path forward.”

The delegation urged Causey to deny the increase in a letter signed by nine Congressional delegates that included Rep. Wiley Nickel (D-NC) and Rep. David Rouzer (R-NC).

The Rate Bureau has asked for the rates to become effective Aug. 1.