North Carolina Mobile Home Insurance Rate Adjustments

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North Carolina Mobile Home Insurance Rates Set to Rise

Mobile home insurance policyholders in North Carolina will experience average rate increases in the coming years. Specifically, fire insurance policies are expected to see an average increase of 11% across two years, while casualty policies will rise by about 8%. This follows an accord between the North Carolina Rate Bureau and the state’s Department of Insurance, as reported by BestWire.

Insurance Commissioner Mike Causey announced that this agreement would save mobile homeowners over $10 million annually compared to the insurers’ initial rate hike proposal. The adjustments will impact nearly 148,000 policyholders, with the first increase slated for September 1 and the second for August 31, 2026. Insurers will be restricted from filing for another rate increase until September 1, 2027, according to the Department of Insurance.

This agreement averts what could have been an extensive rate hearing planned for May 31. Such hearings are a part of North Carolina’s regulatory framework when insurers and the Department of Insurance cannot initially agree on proposed rate changes.

The North Carolina Rate Bureau initially sought substantially higher increases, proposing an 82.9% hike for mobile home fire policies and a 49.9% increase for casualty policies. The bureau, representing insurers in rate filings, cited escalating costs in construction materials, labor, and claim expenses.

NCRB Chief Operating Officer Jarred Chappell explained the rate increase request was due to inflationary pressures, particularly the rising costs of mobile homes. Chappell noted that the price of new mobile homes in North Carolina surged over 60% from 2018 to 2023.

Chappell commented, “Add in climate change, which intensifies and makes damaging storms less predictable, and the industry’s challenges become evident. We aim to maintain fair and adequate rates to encourage competition among insurers for consumers’ business.“

While this agreement addresses mobile home insurance rates, there is ongoing contention between the insurance department and the rate bureau regarding personal auto insurance rates. The NCRB has sought an average 22.6% increase for personal auto policies, which Commissioner Causey has deemed excessive.

A hearing is scheduled for September, after which the commissioner will have 45 days to make a decision. If no agreement is reached, the dispute might lead to an extended regulatory review, akin to previous rate conflicts.