Mobile home insurance rates could skyrocket soon

To Beth Lawrence

if NC Insurance Department Upon approving requests from state insurance rating agencies, trailer home owners could face a steep increase in insurance coverage costs.

NC Toll Bureau is calling for a near 100% increase in certain policies.

“The NCRB, which represents insurance companies, is not part of the insurance companies. NC Insurance Departmentdemanded an average statewide increase of 87.5% in fire policy, MH-F, and an average statewide increase of 53.4% ​​in casualty policy, MH-C,” NCDOI said in a press release. stated in the release.

The NCRB requires the increase to be applied in two stages. The first stage increases fire policy by 23.2%. July 1, 2023 and casualty insurance at 31.5%. Fire insurance will increase by 24.5 percent and casualty insurance by 33 percent next year.

Two NCRB representatives blamed rising costs and frequent claims from some homeowners.

Joanna Biliouris NCRB General Manager said: “And what we’ve seen is that both the cost and frequency of claims, the number of claims filed, and the cost of actually resolving those claims have increased considerably over the last few years. The increase is the price increase we requested from the insurance department.”

ever since toll bureau represents insurance companies in all states and obtains claims data from all agencies to determine recommended increases.

Biliouris argued that the costs could not be offset simply by raising the rates of frequent applicants rather than shifting the burden to all policyholders.

“There are many factors that determine what your premium will be,” she said. “Part of it is your claim history. There are factors that add to your premium if you file many claims, but there is something called a base rate that starts with a certain number that you add and subtract. I mean, it’s like a pool that looks at everything the industry calls exposure, how much risk exposure you have there, how you spread that risk, and so on.

“We had a water leak in our house and it was covered by our insurance. $25,000 Fix it.I don’t know how the insurance company will respond and charge me $25,000 At the premium for that one claim. The amount claimed is greater than the insurance premium for a particular property.”

Because the policy is based on the cost of repair or replacement in the event of a loss, it said the rise in consumer prices in recent years has been reflected in the NCRB figure. Jared ChappellChief Operating Officer.

“When you look at the numbers we put out, we are reporting exactly what the data tells us,” Chappell said. “This is what we need to cover the cost of these claims. We cannot take into account what is affordable or not. To limit the impact on consumers, we have made this application in two steps. That is why we have implemented

Chappell said if the cost drops by the next review, that will be reflected in the requested rate.

There may be good news in the numbers.

The state is divided into multiple regions, and premium rates vary from region to region, Biliolis said.

So mobile home owners Western North Carolina You may not see the same ratings as residents of coasts at risk of hurricane damage.

Historically, DOIs have not always toll bureau everything it asks for. There is often negotiation until both sides settle on numbers.

According to Biliouris, the 87.5% average is not a case of haggling or setting a higher number in hopes that the DOI will negotiate until the NCRB reaches the number it actually wanted.

“This filing is over 2,000 pages of data and justifies these fees,” she said.

In 2020, the NCRB called for an average 24.5% increase statewide, settling at 7.9%. 2018 demand he was 17.4% and agreement was reached at 4%.

Even if demand rates pass, that doesn’t mean all policy rates will go up. Individual companies can choose different rates.

Mobile home owners have an opportunity to raise concerns with the DOI before a decision is made.Comments are due November 18th can be sent by email [email protected]A written statement can be sent Mary Faulkner1201 mail service center, Raleigh, North Carolina 27699-1201. Written comments must be mailed before reaching the DOI. November 18th.

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