NEW HANOVER COUNTY, N.C. — Homeowners across the state will most likely be seeing an increase in homeowners insurance premiums. 

It’s not a matter of if, it’s a matter of by how much. 

A series of hearings began last week to iron out the difference between the State Rate Bureau and insurance commissioner. 

Insurance companies want to raise rates by an average of 42% across the state. This request for increase came 10 months ago but is more impactful following Hurricane Helene, which devastated the state’s mountain region, leaving countless homes destroyed. 

On the coast, an area that’s had its fair share of hurricanes, premiums could increase by as much as 99% in some areas. 

When Genna Wirth was just 26 years old, she knew she wanted to become a homeowner. 

Like many with that goal, her concerns were centered around the cost.

Genna Wirth looks at her budget at her home in Wilmington. (Spectrum News 1/Natalie Mooney)

“I was very concerned about the fact that I do work in nonprofit, and so there’s not a ton of money to be made in nonprofits, but I made enough that I felt like it was time for me to make that next step,” Wirth said.

Wirth said she was able to secure a first-time homebuyer grant that made all the difference in her ability to buy a house.

“I was able to actually get $20,000 of down payment assistance and up to 5% of closing costs covered,” Wirth said. “Which really made the process easy for me.”

Two years later, Wirth is a proud homeowner in the City of Wilmington, but she’s discovered that owning a home comes with more than just a mortgage payment. 

There are interest rates, property taxes and homeowners insurance, and rates are only expected to increase.

It’s unlikely we’ll see this massive rate hike, but what the Rate Bureau is proposing could look like this:

• Areas in the mountains like Madison County could see a little over a 4% increase while Buncombe County could be looking at a raise of 20%
• The Charlotte-Mecklenburg and Raleigh-Durham areas could see an increase of around 40%
• The coast and areas like New Hanover County could see a potential increase of 99%

Joy Sharp said the increases are a reflection of the current economy. (Spectrum News 1/Natalie Mooney)

Joy Sharp, the branch manager for Brad Sizemore Insurance in Wilmington, said those proposed increases reflect the state of the general economy.

“The cost of gas, the cost of labor, the cost of supplies that they use to rebuild your home,” Sharp said. “All of that has increased, so the insurance companies have to insure your home for a higher value so that they can replace it.”

On the coast, it gets even more complicated. 

There is already an additional home insurance plan — commonly known as “the beach plan” — that costs extra money. 

Factor in that houses are still in disrepair six years after Hurricane Florence, houses in the Outer Banks are falling into the ocean and the frequency and intensity of future storms is only expected to increase. 

Sharp said all of that comes into play with this potential premium increase.

Houses in Rodanthe are battling rising seas. (Spectrum News 1/Lauren Howard)

“Just about every storm that comes through causes millions of dollars in damage along the coast, and that’s something these insurance companies have to be prepared for,” Sharp said. “And you pay your premium, it goes into a big pot, and then they pull from that pot to pay the claims, so if the pot isn’t full and there’s claims to pay, that’s how a company goes insolvent.”

Wirth, who is still a relatively new homeowner, is worried about what these possible rises in insurance premiums will mean for the future of her finances.

“In looking at what I’m already spending on my mortgage, my homeowner’s insurance and property taxes, it’s already taking up about 44% of all of my income,” Wirth said. “So even an increase of a hundred dollars, two hundred dollars a month, is really gonna impact that percentage and really gonna place a big burden on me to make that up.”

The hearing between the N.C. Rate Bureau and the N.C. Department of Insurance is expected to continue for at least another week. 

The final say will come down to the Commissioner of Insurance — a position up for election this fall. 

Again, it’s not a matter of if those rates will increase, but by how much, and if the insurance companies will accept a lower increase and continue to do business in our state.