Your North Carolina beach rental just got more expensive. A lot more expensive.
On October 30, the North Carolina Rate Bureau filed a request with state regulators to raise insurance rates on dwelling policies by 41% over two years. If you own a second home, vacation rental, or year-round rental property in NC, this hits your wallet directly. And you have until November 19, 2025 to tell regulators what you think—or stay silent and watch premiums climb.
The clock’s ticking.
Your Premium Math: What 41% Actually Costs
Let’s cut through the percentage and show real numbers. Average dwelling policy premiums for coastal NC properties currently run $2,500 to $4,000 annually. A 41% increase means:
- $2,500 policy becomes $3,525 — that’s an extra $1,025 per year, or $2,050 over two years.
- $4,000 policy jumps to $5,640 — costing you an additional $1,640 annually, $3,280 over the rate implementation period.
- Multiple properties? Own three vacation rentals? Multiply those numbers by three. You’re looking at $4,920 in additional costs across your portfolio.
The Rate Bureau wants to phase this in gradually over 24 months, but gradual still means significant. For property owners already dealing with North Carolina Department of Insurance requirements and coastal maintenance costs, this compounds an already expensive situation.
Which Properties Get Hit Hardest?
Not all properties face equal impact. The proposed hike specifically targets dwelling policies, which cover:
| Property Type | Coverage Details | Risk Profile |
|---|---|---|
| Second Homes | Vacation properties you occupy part-time | Moderate (unoccupied periods increase risk) |
| Vacation Rentals | Short-term rental properties (Airbnb, VRBO) | High (frequent turnover, liability exposure) |
| Year-Round Rentals | Long-term tenant-occupied properties | Moderate to High (tenant-caused damage) |
Your primary residence isn’t affected. This matters because homeowner policy rate increases in NC have averaged 8-12% recently, not 41%. The Rate Bureau’s filing singles out non-owner-occupied properties for significantly steeper hikes.
Why? Coastal vacation rentals face higher claims from hurricanes, flooding, and tenant damage. But 41% suggests insurers are pricing in catastrophic risk—or padding margins.
The November 19 Deadline: Your One Shot at Pushback
Here’s what most property owners miss: public comments actually influence rate decisions. The NC Department of Insurance reviews every submission before approving or modifying rate requests. In 2023, coordinated public opposition reduced a proposed commercial property hike from 28% to 19%.
You have 10 days left. Submit comments to:
Kimberly Pearce, Paralegal III
1201 Mail Service Center
Raleigh, NC 27699-1201
Or email via the NCDOI website (check their consumer complaint portal for current submission instructions).
What to include:
- Your name and North Carolina property address (proves you’re directly affected).
- Specific financial impact: “A 41% increase on my $3,200 policy means $1,312 in added costs over two years.”
- Why you oppose the full amount: Cite your claims history, property maintenance, or competitive quotes from other states.
- Alternative solutions: Suggest phased increases over 3-4 years, or capped increases tied to actual claims data.
- Economic impact: If you rent to vacationers, explain how higher insurance costs force rental rate increases, hurting tourism.
Don’t write a novel. Two paragraphs with hard numbers beat five pages of generic complaints.
Why 41%? What Insurers Aren’t Saying
The Rate Bureau represents multiple insurance companies operating in North Carolina. Their filing claims dwelling policies face increased risk, but the 41% figure raises questions:
- Claims data transparency. The public filing doesn’t break down loss ratios by property type or region. Are Outer Banks rentals driving losses, or is this statewide? Without granular data, property owners can’t verify the math.
- Reinsurance costs. Global reinsurance markets tightened after 2024’s hurricane season, pushing up costs for insurers. But by how much? If reinsurance added 15% to expenses, where’s the other 26% coming from?
- Profit margins. NC law allows “reasonable” profit for insurers. Is 41% reasonable when primary residence rates only jumped 8-12%? The filing should justify the disparity.
The National Association of Insurance Commissioners (NAIC) requires actuarial justification for rate changes, but state departments don’t always demand line-by-line proof. Your comments can force regulators to ask harder questions.
What Happens If This Gets Approved?
Assuming the Department of Insurance approves the full 41%, here’s the timeline:
Year 1 (likely starting mid-2026): Rates increase approximately 20%. Your $3,000 policy becomes $3,600.
Year 2: Another ~17% hike completes the phase-in. That $3,600 policy hits $4,230.
But approval isn’t guaranteed. The NCDOI can:
- Approve the full 41% (worst case for property owners).
- Reduce the increase to 25-30% based on public feedback and actuarial review.
- Extend the phase-in over three or four years instead of two, softening annual impact.
- Approve different rates by region—higher for coastal counties, lower inland.
Your comments won’t stop the hike entirely. Claims costs are real. But they can reduce the pain and force transparency.
Three Immediate Steps Property Owners Should Take
Beyond submitting comments by November 19, start planning now:
1. Shop competitors before rates lock in.
Not all insurers participate in the Rate Bureau filing. Independent companies like Nationwide or regional carriers may offer better deals for well-maintained properties. Get quotes in writing before year-end, when 2026 rates take effect.
2. Document your property’s condition.
Take photos, save maintenance records, and compile your claims history (or lack thereof). If you’ve had zero claims in five years, that’s leverage. Some insurers offer loyalty discounts or rate locks for low-risk clients—but you have to ask and prove it.
3. Adjust rental pricing (if applicable).
If you rent the property, you’ll need to recoup $1,000–$1,600 in added annual costs. For weekly rentals, that’s $20-30 per reservation. Build it into 2026 rates now, before competitors undercut you.
Could This Spread to Other States?
North Carolina isn’t alone in targeting non-primary residences. Florida already charges 20-30% higher premiums for second homes in coastal zones. California’s FAIR Plan recently expanded coverage for vacation properties, but with stricter underwriting.
The trend: insurers are repricing vacation and rental properties as higher-risk assets. If NC’s 41% hike gets approved without major opposition, expect similar filings in South Carolina, Virginia, and other coastal markets within 12-18 months.
Regional insurers watch regulatory precedent. A rubber-stamp approval here signals to other states that 40%+ hikes are acceptable. That’s why your November 19 comment matters beyond your own wallet.
Frequently Asked Questions
Does the 41% increase apply to my primary residence in North Carolina?
No. The proposed rate hike targets dwelling policies only, which cover second homes, vacation rentals, and year-round rental properties. Your primary residence falls under a homeowner policy, which typically sees smaller annual increases (8-12% recently in NC). If you’re unsure which policy type you have, check your declarations page or call your insurer directly.
Can I switch insurance companies to avoid the rate hike?
Maybe. The North Carolina Rate Bureau represents most major insurers operating in the state, so many carriers will implement similar increases. However, independent insurers not part of the Rate Bureau filing may offer competitive rates. Shop around before your renewal date, especially if you have a clean claims history and well-maintained property. Get quotes in writing with 2026 effective dates to lock in current pricing where possible.
What happens if I miss the November 19 comment deadline?
The NC Department of Insurance stops accepting public feedback on this specific rate filing after November 19, 2025. Late submissions typically aren’t reviewed as part of the official record. However, you can still contact your state representatives or file a general consumer complaint with NCDOI about rate fairness. Just know that missing the deadline reduces your direct influence on this decision. Future rate filings will have new comment periods—sign up for NCDOI alerts to catch them early.
How do I prove the 41% increase is too high in my comment?
Use specific data: (1) State your current premium and the dollar increase a 41% hike would cost you over two years. (2) Cite your claims history—if you’ve filed zero claims in 5+ years, emphasize that. (3) Compare to primary residence rate increases in NC (8-12%) and ask why dwelling policies warrant 3-4x higher hikes. (4) Provide quotes from competing insurers showing lower rates for similar coverage. (5) Reference any property improvements (new roof, hurricane shutters) that reduce risk. Hard numbers beat emotional appeals in regulatory reviews.
Will commenting actually change anything, or is this just symbolic?
Public comments carry real weight. In 2023, coordinated opposition to a commercial property rate hike in North Carolina led to a reduction from 28% to 19%. The NCDOI reviews every submission and can request additional actuarial justification from insurers if public feedback raises valid concerns. A flood of detailed, data-driven comments from affected property owners forces regulators to scrutinize the Rate Bureau’s math more closely. One comment won’t kill the hike, but 500 well-written comments could cut it to 25-30% or extend the phase-in period.
Bottom Line: Don’t Wait
November 19 is 10 days away. That’s three business days if you mail your comment, less if you want confirmation of receipt.
Here’s the reality: insurance rate hikes in high-risk markets won’t disappear. Climate change, construction costs, and reinsurance pressure are real. But 41% in two years needs justification beyond “trust us.” Your comment won’t reverse the tide, but it forces transparency and could shave $500–$800 off your annual increase.
Two paragraphs with your property address, current premium, and why this hurts—that’s all it takes. Send it tonight.