Mike Causey | We’ve settled mobile homeowners’ insurance rate dispute

It took nearly a year, but we were finally able to settle a dispute with companies that write mobile homeowners’ insurance policies in North Carolina.

In April 2024, the North Carolina Rate Bureau sent my office a proposal to increase rates for Mobile Home Fire (MH-F) policies by an overall statewide average of 82.9%. The Rate Bureau, which represents insurance companies in North Carolina and is not a part of the Department of Insurance, also requested an increase of 49.9% for Mobile Home Casualty (MH-C) policies.

I thought the request was excessive, so I did not agree with the insurance companies and set a hearing date on the dispute for May 21. In the meantime, attorneys, actuaries and property and casualty insurance experts in my office worked with the insurance companies to negotiate a settlement.

Earlier this month, I signed an agreement providing for an average increase of 11% per year over the next two years for MH-F policies and a statewide average increase of 8% for MH-C policies per year over the next two years.

The first set of increases will take effect on new and renewed policies beginning on or after Sept. 1. The second set of increases will take effect on Aug. 31, 2026. The agreement prevents the insurance companies from seeking another increase before Sept. 1, 2027.

As you can see, the increases are significantly smaller than those requested by the insurance companies. North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested. The settlement also means that the Department of Insurance has avoided a potential lengthy and expensive administrative legal battle with the insurance companies. The agreement means we’ve canceled the May 21 hearing.

The agreement affects approximately 148,000 mobile homeowners’ policyholders in North Carolina.

North Carolina’s process for setting insurance rates is different from other states. In our state, the Rate Bureau files rate requests on behalf of all insurance writing property and casualty insurance in the state. In other states, insurance companies file for rate changes individually.

I have two major roles with it comes to proposed insurance rate increases. First, I have to make sure the rates provide for a fair premium for North Carolina consumers. They can’t be excessive or unfairly discriminatory.

Second, I have to make sure that the premiums are sufficient to make sure the insurance companies can pay their claims.