If the North Carolina Department of Insurance approves requests from the state’s insurance rating agency, trailer home owners could face significant increases in insurance coverage costs.
The NC Rate Bureau is demanding almost 100% price increases for certain policies.
“The NCRB, which represents insurance companies and is not part of the NC Department of Insurance, is demanding a statewide average increase of 87.5% for MH-F fire insurance and a statewide average of 53.4% for MH-C. We called for an increase in the –casualty policy,” NCDOI said in a press release.
The NCRB requires the increase to be applied in two stages. In the first phase, fire insurance will increase by 23.2% and casualty insurance will increase by 31.5% on 1 July 2023. 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 significantly over the last few years. That’s sort of the rationale for the price increases we’ve asked the insurance department to do.”
The Rate Bureau represents all national insurance companies, so we obtain claim 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 how much a premium will cost,” she said. “Part of it is your claim history. There is an element that adds to your premium if you file many claims, but there is something called a base rate, where you start with a certain number and add or subtract things. It’s like a pool that looks at everything the industry calls exposure, how much risk exposure is there, how you spread that risk, and so on.
“My house had a water leak and was covered by insurance.It turned out it would cost $25,000 to fix it. I don’t know if I can claim the fee.The amount I’m being charged is higher than the insurance premium for the particular property.”
Rising consumer prices in recent years are reflected in the NCRB numbers because the policy is based on the cost of repair or replacement at loss, said chief operating officer Jarred Chappell. increase.
“When you look at the numbers we put out, we are reporting exactly what the data tells us,” said Chappell. “This is what we need to cover the cost of these claims. Affordability cannot be considered. So, in order to limit the impact on consumers, in this petition he proposed a two-step implementation. The we.”
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.
As a result, trailer home owners in western North Carolina may not get the same ratings as coastal residents at risk of hurricane damage.
Historically, DOIs have not always provided everything they ask of rate bureaus. 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. The deadline for his comments is November 18th. NCDOI.2022MH@ncdoi.govWritten statements can be sent to Mary Faulkner, 1201 Mail Service Center, Raleigh, North Carolina 27699-1201. Written comments must be mailed to reach the DOI by November 18th.