North Carolina settles mobile home rate dispute and agrees smaller per-year rise

By Isha Marathe

April 2 - (The Insurer) - North Carolina's Department of Insurance and the state's Rate Bureau have settled their rate increase dispute and agreed on a statewide average rise of 11% for mobile home fire policies and a statewide average uptick of 8% for mobile home casualty coverages per year over the next two years.

The first set of increases will take effect on new and renewed policies beginning on or after September 1, 2025. The second set of increases will take effect on August 31, 2026. The agreement prevents the insurance companies from seeking an increase before September 1, 2027.

The increases affect approximately 148,000 policyholders in North Carolina.

Both the mobile home fire and mobile home casualty programs include flood coverage.

The increases are smaller than those initially proposed by the Rate Bureau, which represents companies writing insurance policies in North Carolina and is not a part of the Department of Insurance.

On April 8, 2024, insurance companies had proposed an overall statewide average of 82.9% increase for mobile home fire policies and an overall statewide average of 49.9% rise for mobile home casualty coverages, leading to the dispute.

“I am happy to announce that North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested, North Carolina Insurance Commissioner Mike Causey said.

“I am also glad the Department of Insurance and insurance companies have avoided a lengthy, expensive administrative legal battle.”

In January, Causey announced a resolution to the legal dispute between the state's insurance department and insurers over a proposed homeowners insurance rate increase, allowing for a 7.5% average statewide base rate increase on June 1, 2025, followed by another 7.5% increase on June 1, 2026.