Nearly 150,000 policyholders in the state will have to wait almost a year to find out if the cost of their mobile home insurance will increase.
The North Carolina Rate Bureau filed April 8 a proposed overall state average increase of 82.9% for mobile home fire policies and 49.9% for mobile home casualty policies, both over a three-year period. The nonprofit Rate Bureau represents the insurance companies and is not a part of the North Carolina Department of Insurance.
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While both of these types of insurance for mobile homes are similar and include flood coverage, the fire policies cover “a broader range of perils,” according to the state.
Because Department of Insurance officials don’t agree with the Rate Bureau’s request, Insurance Commissioner Mike Causey has set a hearing date, as required by state law, for 10 a.m. April 7, 2025, in the Department of Insurance building in Raleigh.
“We are not in agreement with the insurance companies’ proposed increases,” Causey said this week in the announcement. “It is now necessary to hold a hearing to reach a resolution that will make the most financial sense for our residents and insurance companies.”
The hearing will take place unless the Department of Insurance and the Rate Bureau are able to negotiate a settlement before that date, officials said.
State law gives the commissioner 45 days to issue an order once the hearing concludes. Once the order is issued, the Rate Bureau has the right to appeal the decision to the N.C. Court of Appeals. An appeals court order could then be appealed to the state Supreme Court.
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The Department and Rate Bureau can settle the proposed rate increase at any time during litigation.
The mobile home fire policies increase request is 24.9% for 2024, 21.2% for 2025 and 20.9% for 2026. The mobile home casualty policies increase request is 15.9% for 2024, 13.9% for 2025 and 13.5% for 2026. The Rate Bureau is requesting that the increases take effect on Nov. 1 of each year.
The Insurance Department held a public comment period on the rate increases in April.
The last Rate Bureau mobile home rate increase filing was in 2022 and resulted in a settlement of 10% for mobile home casualty policies and a settlement of 15% for mobile home fire policies. Both took effect Aug. 1, 2023.
