The N.C. Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau over a proposed rate increase for two types of insurance policies for mobile home owners.
The two policies are Mobile Home Fire and Mobile Home Casualty, and the settlement calls for a statewide average increase of 11 percent per year over the next two years for the fire policy and an average of 8 percent over the same time period for the casualty policy.
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 an increase before Sept. 1, 2027.
Although the cost will go up, the increase is much less than the proposed 82.9 percent and 49.9 percent increase in fire and casualty policies that companies asked the Rate Bureau for about one year ago, according to information from the N.C. Dept. of Insurance.
“I am happy to announce that North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested, Insurance Commissioner Mike Causey said. “I am also glad the Department of Insurance and insurance companies have avoided a lengthy, expensive administrative legal battle.”
The increases affect approximately 148,000 policyholders in North Carolina.
Unlike standard homeowners’ programs, both the MH-F and MH-C programs include flood coverage. The two programs are similar. However, the MH-F program provides coverage for a broader range of perils.
The agreement means a hearing on the issue scheduled for May 21 has been canceled.
