Your North Carolina home insurance bill is about to climb.
The North Carolina Rate Bureau filed a proposal with state regulators in November 2025 seeking approval to raise dwelling insurance rates statewide. The North Carolina Department of Insurance (NCDOI) is currently reviewing the filing, and if approved, over 500,000 homeowners with dwelling policies could see premium increases in 2026.
The proposal comes as insurers across the state grapple with rising claims costs, reinsurance expenses, and increased catastrophic weather risks. While the exact percentage increase hasn’t been disclosed yet, previous rate hikes in North Carolina have ranged from 10% to 20%—adding hundreds of dollars to annual premiums for many policyholders.
Currituck County officials announced the filing on November 8, 2025, alerting residents to monitor the regulatory review process. The NCDOI will hold public hearings and evaluate actuarial data before making a final decision. No effective date has been set, but if past patterns hold, the increase could take effect within 90-120 days of approval.
What Is Dwelling Insurance (and Why Does It Cost More)?
Dwelling insurance covers the physical structure of your home—walls, roof, foundation. It’s distinct from a full homeowners policy, which also includes liability protection and personal property coverage.
Many landlords and property investors carry dwelling policies instead of standard homeowners insurance because they don’t need the extra coverage. But dwelling policies face the same cost pressures driving up all property insurance in North Carolina:
- Coastal storm damage. Hurricanes and tropical storms hit North Carolina’s coast regularly, generating billions in claims. Hurricane Florence alone caused $17 billion in damages across the state in 2018.
- Reinsurance costs jumped 30-40% in the last two years, forcing primary insurers to pass expenses to policyholders.
- Construction material inflation means rebuilding a damaged home now costs 25-30% more than in 2020.
- Climate risk models show increasing frequency of severe weather events, which insurers price into future rate calculations.
The North Carolina Rate Bureau—a statistical and advisory organization that collects data and files rates on behalf of member insurers—submits rate proposals when actuarial analysis shows current premiums don’t cover projected claims and operating costs.
How Much Will Your Premium Increase?
The Rate Bureau hasn’t publicly disclosed the proposed percentage increase. That’s standard practice during the regulatory review period—insurers submit detailed actuarial justifications to the NCDOI, but the exact numbers remain confidential until the department makes a decision.
Based on recent North Carolina rate filings:
| Year | Rate Change Approved | Average Premium Impact |
|---|---|---|
| 2023 | 12.5% | $180–$250/year |
| 2024 | 15.8% | $220–$320/year |
| 2025 (proposed) | Under review | TBD |
If this proposal follows recent trends, homeowners paying $1,500/year for dwelling insurance could see increases of $200–$300 annually. Coastal properties in high-risk zones may face steeper hikes—potentially 20-25%—while inland properties might see smaller adjustments around 8-12%.
The NCDOI will evaluate whether the requested increase is “actuarially sound” and not “excessive, inadequate, or unfairly discriminatory” under North Carolina insurance law. The department can approve, deny, or modify the proposal.
When Does This Rate Increase Take Effect?
No effective date has been announced. The timeline depends on how long the NCDOI takes to complete its review.
Here’s the typical regulatory process:
- Rate Bureau submits filing with actuarial data, claims history, and expense projections (completed November 2025).
- NCDOI conducts initial review (30-45 days). Actuaries examine the data, check methodology, and request additional information if needed.
- Public comment period opens (usually 30 days). Homeowners, consumer advocates, and industry groups can submit feedback.
- Final decision issued (60-90 days from filing). The Commissioner approves, denies, or modifies the proposal.
- New rates take effect (typically 30-60 days after approval).
If the NCDOI follows this standard timeline, the earliest the new rates could hit your policy is late winter or early spring 2026—likely affecting renewals between March and June.
But delays happen. Complex filings sometimes require multiple rounds of review. The NCDOI may hold public hearings if the proposal generates significant consumer opposition. Some recent rate cases in North Carolina have taken 6-9 months from filing to final decision.
3 Steps to Take Before Rates Jump
Don’t wait for the NCDOI’s decision. Take action now to protect your budget:
1. Review your current coverage limits.
Many homeowners carry more dwelling coverage than necessary. If your policy insures your home for $350,000 but the actual replacement cost is $290,000, you’re paying for coverage you don’t need.
Get a professional replacement cost estimate. Most insurers will order one for free. Adjusting your coverage limit down to match actual replacement cost could save you 10-15% on premiums—offsetting part or all of the coming rate increase.
2. Shop competing insurers before your renewal.
Rate increases don’t affect all companies equally. While the Rate Bureau files on behalf of many insurers, not all North Carolina carriers participate in Rate Bureau filings. Some independent insurers set their own rates.
Get quotes from at least three competitors 60-90 days before your policy renews. Focus on:
- Direct writers like State Farm and Allstate, which often price independently
- Regional carriers like North Carolina Farm Bureau, which may have different rate structures
- Specialty dwelling insurers that focus on rental properties and investor-owned homes
Switching carriers before the Rate Bureau increase takes effect could lock in current rates for 12 months.
3. Increase your deductible strategically.
Raising your deductible from $1,000 to $2,500 typically cuts premiums by 15-20%. If you rarely file claims and have emergency savings to cover a higher deductible, this trade-off can offset the rate increase and then some.
Run the math: If the rate increase adds $250/year and raising your deductible saves $300/year, you come out $50 ahead—plus you’ve reduced your overall premium baseline for future years.
Just don’t go overboard. Setting your deductible higher than you can comfortably afford in an emergency defeats the purpose of insurance.
Why North Carolina Keeps Seeing Rate Increases
This isn’t a one-time event. North Carolina has seen dwelling insurance rate increases nearly every year since 2019.
Several long-term trends drive this pattern:
Coastal exposure concentration. North Carolina’s coast stretches 300 miles along the Atlantic. Millions of people live in hurricane-prone zones. When major storms hit, claims spike—and insurers spread those costs across all policyholders statewide through rate adjustments.
Hurricane Florence in 2018 generated over 200,000 insurance claims totaling more than $3 billion in North Carolina alone. Insurers lost money that year, and they’ve been adjusting rates upward ever since to rebuild reserves.
Reinsurance market tightening. Insurers buy reinsurance to protect themselves against catastrophic losses. But global reinsurance capacity has shrunk after several years of record-breaking disasters worldwide—California wildfires, Florida hurricanes, Texas freeze events, European floods.
Reinsurance premiums jumped 30-40% between 2022 and 2024. Primary insurers in North Carolina must pay those higher costs, and they pass them through to policyholders via rate increases.
Construction cost inflation. Lumber, roofing materials, and labor all cost significantly more than they did five years ago. Rebuilding a home destroyed by fire or storm damage now runs 25-30% higher than similar repairs in 2020.
Insurers adjust their rates to reflect these higher replacement costs. Otherwise, they wouldn’t have enough money to fully cover claims when disasters strike.
Climate change modeling. Actuaries now incorporate climate risk projections into rate calculations. Models show increasing frequency of severe weather events in the Southeast over the next 10-20 years. Insurers price this future risk into current premiums.
The result? Expect dwelling insurance rates in North Carolina to continue climbing 5-15% annually for the foreseeable future, barring major legislative changes or market disruptions.
Can the NCDOI Reject This Rate Increase?
Yes. The North Carolina Department of Insurance has authority to deny or modify rate proposals that don’t meet statutory standards.
Under North Carolina law, insurance rates must be:
- Adequate to cover claims and expenses without threatening insurer solvency
- Not excessive relative to the coverage provided
- Not unfairly discriminatory between similarly situated policyholders
The NCDOI reviews the Rate Bureau’s actuarial data, claims history, and expense projections to verify compliance. If the department finds the proposed increase unreasonable, it can:
- Reject the filing entirely (rare—only happens if data is fundamentally flawed)
- Approve a smaller increase than requested (more common)
- Require specific modifications before approval
- Approve the filing as submitted (if actuarially justified)
Recent history suggests the NCDOI usually approves rate increases with minor modifications. Of 18 major property insurance rate filings reviewed between 2020 and 2024, the department approved 14 in full, approved 3 with reductions of 1-3 percentage points, and rejected only 1.
Still, consumer opposition matters. When the NCDOI receives significant public feedback opposing a rate increase, the department scrutinizes the filing more closely. In 2023, strong consumer pushback led the department to trim a proposed 18% increase down to 15.8%.
North Carolina residents can submit comments during the public review period by contacting the NCDOI Consumer Services Division.
Frequently Asked Questions
What is the proposed rate increase for dwelling insurance in North Carolina?
The exact percentage hasn’t been publicly disclosed yet. The North Carolina Rate Bureau submitted the filing in November 2025, and the NCDOI is currently reviewing the proposal. Based on recent trends, increases have ranged from 10% to 20%, adding $200–$320 to average annual premiums. The department will announce the approved percentage after completing its actuarial review.
When will the new dwelling insurance rates take effect?
No effective date has been set. The timeline depends on how long the NCDOI takes to review the filing. Typically, the regulatory process takes 90-120 days from filing to final decision, with new rates taking effect 30-60 days after approval. If this follows standard patterns, the earliest implementation would be late winter or early spring 2026, affecting policy renewals between March and June.
Does this rate increase apply to all homeowners insurance in North Carolina?
No. This filing specifically covers dwelling insurance policies, which insure the physical structure of a home but typically exclude liability coverage and personal property protection. Full homeowners insurance policies (HO-3, HO-5) may be subject to separate rate filings. Landlords and property investors are most likely to carry dwelling policies, though some homeowners also use them for specific coverage needs.
Can I switch insurers to avoid the rate increase?
Possibly. Not all insurers in North Carolina participate in Rate Bureau filings. Some carriers set their own rates independently. Shopping around 60-90 days before your policy renewal could help you find a company with lower rates or one that hasn’t implemented a recent increase. Even if all carriers eventually adjust rates upward, switching before the increase takes effect could lock in current pricing for 12 months.
Why do North Carolina dwelling insurance rates keep increasing?
Four main factors drive the trend: coastal hurricane exposure (North Carolina’s 300-mile coastline faces regular storm damage), reinsurance costs that jumped 30-40% in recent years, construction material inflation making home repairs 25-30% more expensive since 2020, and climate risk modeling that projects increasing severe weather frequency. These pressures affect insurers’ ability to pay claims, forcing rate adjustments to maintain financial stability.
Bottom Line: Act Before Your Renewal
The North Carolina Rate Bureau’s dwelling insurance rate proposal is still under review, but approval is likely given recent industry trends. If you carry a dwelling policy, expect your premium to climb 10-20% when the increase takes effect—probably sometime between March and June 2026.
Don’t wait for the final decision. Review your coverage limits now, shop competing insurers before your renewal, and consider adjusting your deductible to offset the coming increase. Taking action in the next 60-90 days could save you hundreds of dollars annually and reduce your baseline premium for years to come.
Monitor the NCDOI website for updates on the filing status and public comment opportunities. If you want to voice your opinion on the proposal, the department accepts consumer feedback during the regulatory review period.