MOREHEAD CITY, N.C. – Homeowners along the North Carolina coast are bracing for a substantial increase in their insurance rates as the North Carolina Rate Bureau proposes a statewide surge in homeowners’ insurance rates.
John Turnage, a retired long-time resident of Morehead City, expressed concern about the potential impact on his house, which has weathered serious hurricanes since its construction in the 1940s. “This house was built in the ’40s, and we’ve had some serious hurricanes in ’54 and ’60, but the house is still here,” Turnage shared.
The North Carolina Rate Bureau has submitted a request to the North Carolina Department of Insurance for a statewide increase in homeowners’ insurance rates, with the average proposed increase being 42.2%. However, coastal counties, such as Carteret County, are facing even steeper hikes, with a proposed increase of 99.4%.
According to Representative Chris Humphrey, the elevated rates in coastal areas go beyond the direct impacts of natural disasters. “It’s driven by increased labor costs in the coastal areas because the demand is so high for building in that area. I mean, water is a very popular attraction,” explained Rep. Humphrey.
The potential surge in insurance rates raises concerns not only for homeowners like Turnage but also for the broader economy. Rep. Humphrey pointed out that it could dissuade potential homeowners from relocating to the state, impacting the overall economy.
For Turnage, whose waterfront house holds sentimental value as it was passed down through the family, the proposed increase is a significant worry. “Every year, eventually it’s going to run people out of their houses, and they are not going to be able to afford it. We sure don’t want that to happen. I am going to work the best I can to stay in this house,” he remarked.
Real estate agent broker Mark Mansfield in Morehead City echoed these concerns, highlighting the potential ripple effect on renters. “Rising rent has been a big problem for people going forward, and now it’s going to cause even a bigger increase because if you have to add that insurance costs, they are going to be raising rents too,” Mansfield shared.
