Many are concerned about another increase in homeowners insurance proposed in 2014, and confused about how the ratemaking process works in North Carolina.
Shane Johnson, government affairs director for the Wilmington Regional Association of Realtors, said concern and confusion are common to coastal homeowners seeing regular raises in insurance rates in the past 25 years. Johnson worked with Tyler Newman, senior government affairs director at Wilmington-based Business Alliance for a Sound Economy, to ensure coastal opinions and experiences are heard by bringing N.C. Department of Insurance Commissioner Wayne Goodwin to a Wilmington town hall discussion Monday, Sept. 22, at 2 p.m.
“There’s been the feeling in the past that people on the coast have not really had their voices heard in a clear, concise way. And it’s probably one of the most important issues to homeowners throughout the coastal region,” Johnson said.
Elected to protect public interests, Goodwin halted an average rate increase of 25 percent proposed earlier in 2014 by the N.C. Rate Bureau. More than 10,000 comments poured into the state Department of Insurance office during a January 2014 public comment period. Pegging the proposed increase as excessive, Goodwin scheduled a hearing on the request.
“This is the best result because he could have signed off on what the rate bureau proposed, but he really held firm and challenged them to either withdraw or he was going to take it to this full hearing,” Newman said.
Because Goodwin is hearing officer for the Oct. 20 hearing, he cannot answer specific questions about homeowners insurance rates or the hearing. Noting that North Carolina is the only state in the country with a rate bureau, Johnson said the commissioner can answer basic questions about the state system of ratemaking and regulation.
Newman suggested the structure of the state system could offer an explanation for raising rates.
“That’s one of the bigger issues that we’ve talked about over the past several years,” Newman said. “Looking at homeowners insurance, where we’ve continued to get increases, and looking at statewide equity and the system we have set up with the rate bureau and the commissioner. … Are we doing it the best way?”
Realtor Patrice Willetts will also update the crowd about changes to national flood insurance through the Homeowner Flood Insurance Affordability Act of 2014.
Although different, Johnson said the Realtor association is concerned about raising rates for homeowners insurance and flood insurance as obstacles to home ownership in the area.
“We’ve combined them together because they’re obviously very closely related, and the national [Realtor] association worked very hard this last legislative session in Washington to get the national flood insurance program repaired from the damage caused by the Biggert-Waters legislation,” Johnson said.
The meeting in the third floor ballroom of the Wilmington Regional Association of Realtors office on Sir Tyler Drive is free and open to the public.
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