NCRB Proposes 68.3% Dwelling Insurance Rate Increase, Now Heading to May Hearing as State Pushes Back
A major rate request, state resistance, and a familiar negotiation path as regulators, insurers, and residents collide over costs that could ripple into rents and housing affordability
Note: Dwelling insurance policies are not homeowner’s insurance policies. Dwelling policies typically cover rental homes, investment properties, and other non-owner-occupied residences with four or fewer units.
Raleigh, NC, Dec. 28, 2025 — North Carolina homeowners and landlords could see significant increases in dwelling insurance rates beginning next year, but state regulators are signaling that the proposal is far from settled.
On October 30th, the North Carolina Rate Bureau (NCRB) formally filed a request seeking an average statewide increase of 68.3% in dwelling insurance rates for policies covering non-owner-occupied residential properties, such as rental homes and investment properties. (document)
The NCRB filing prompted Insurance Commissioner Mike Causey to set a May 4th public hearing date, a required step under state law when regulators and insurers disagree on proposed rates.
What the Rate Bureau is proposing
According to the NCRB filing, the proposed increase would be implemented over two years, rather than all at once.
Under the proposal:
Year 1 would take effect on July 1, 2026, with an average 28.3% increase for new and renewing policies.
Year 2 would take effect on July 1, 2027, resulting in another 28.3% statewide increase.
The filing attributes the proposed increase largely to rapidly rising losses under extended coverage, which includes non-fire claims such as wind, hail, and other weather-related damage. Exhibits included in the filing show that these claims are becoming more expensive to settle, driven by higher repair and rebuilding costs, increased claim severity, and associated adjustment expenses. By contrast, losses tied strictly to fire coverage are projected to decline slightly, meaning fire rates alone would not justify an increase.
NCRB also said that the requested changes would not apply evenly across the state. Rates are calculated by rating territory and property characteristics, including location, construction type, and coverage mix. As a result, some policyholders would likely see increases well above or below the statewide average, even within the same county or municipality.
State regulators are not in agreement
The Department of Insurance has made clear that the filing does not reflect its position.
“We are not in agreement with the Rate Bureau’s proposed increases filed earlier this fall,” Commissioner Causey said. “The next step, according to statute, is to set a hearing date. It is now necessary to schedule a hearing to work toward a resolution that will make the most financial sense for our residents and insurance companies.”
The May hearing will be held unless the Department of Insurance and the Rate Bureau reach a negotiated settlement beforehand.
Why this matters locally
Dwelling insurance policies are not homeowner’s insurance policies. Dwelling policies typically cover rental homes, investment properties, and other non-owner-occupied residences with four or fewer units.
Because many landlords rely on dwelling policies, significant increases in insurance premiums can indirectly affect local housing costs and rental prices, even for residents who do not own rental property.
Context from the last rate case
This is not the first time the Rate Bureau has requested a significant increase.
In July of 2023, the NCRB sought an average 50.6% statewide increase in dwelling insurance rates. After negotiations with the Department of Insurance, the two sides reached a settlement resulting in an average 8% increase, which took effect in November of 2024.
That outcome is frequently cited as evidence that rate filings are often a starting point for negotiation rather than an outcome.
What happens next
If no settlement is reached, the public hearing will begin at 10 a.m. on May 4, 2026, at the Department of Insurance headquarters in Raleigh.
Once the hearing concludes, the Insurance Commissioner has 45 days to issue a formal order approving, modifying, or rejecting the proposed rates. The Rate Bureau may then appeal the decision to the North Carolina Court of Appeals and, if necessary, to the state Supreme Court.
How residents can participate
Residents do not need to attend the hearing to have their voices included in the process.
The North Carolina Department of Insurance is accepting written public comments related to the proposed dwelling insurance rate increase. Comments must be received before the hearing date to be included in the official record considered by regulators.
Comments may be submitted by email or regular mail:
Email:
2025DwellingandFire@ncdoi.gov
Regular Mail:
Kimberly Pearce, Paralegal III
North Carolina Department of Insurance
1201 Mail Service Center
Raleigh, NC 27699-1201
Residents and owners submitting comments are encouraged to include:
Their name and North Carolina address
Whether they own or insure a dwelling property
How the proposed rate increase would affect them locally
The bottom line
The proposed 68.3% increase in dwelling insurance is among the largest requests in recent years, but it is not a final decision. With regulators openly opposing the filing, a public hearing scheduled, and a recent history of negotiated outcomes, the final result could differ substantially from what insurers have requested.
For now, the process moves forward toward May, with time remaining for public input and potential settlement before any new rates could take effect.