Over the last 40 years, the NOAA calculates that climate and weather disasters have cost the US $1.75 trillion in damage – and those costs, when insured, obviously trickle down to policyholders.
When a hurricane like Dorian, that battered North Carolina last year runs up costs, so premiums have to rise – which is why insurance companies in the state are requesting approval for a hike of up to 25% from August 2021.
Mike Causey, North Carolina’s Insurance Commissioner told reporters that the NCRB (North Carolina Rate Bureau) had made the request – which averaged out at 24.5% across the state.
The Department of Insurance can now accept the proposal, or more likely, try to haggle that number down. If both parties can’t come to an agreement within 50 days, then Causey will ask for a hearing.
Despite their heavy payouts following last year’s hurricane, there is no guarantee that carriers will get what they ask for – back in 2018 the NCRB asked for just over 17% - settling for a far less impressive 4%.
2020 has already seen North Carolinians hit by natural disaster – tropical storm Zeta swept through the state last month, cutting power to 400,000 and causing landslides and other property damage.
Nationwide insured losses from this one storm alone are expected to exceed $4 billion, according to estimates from AIR worldwide and Karen Clark & Co.