North Carolina mobile home fire insurance policyholders will see an average rate increase of 11% over the next two years, while mobile home casualty policies will rise by an
average of 8%, following an agreement between the North Carolina Rate Bureau and the state’s Department of Insurance, according to a BestWire report.
Insurance Commissioner Mike Causey (pictured right) said the agreement would save mobile homeowners more than $10 million annually compared to the initial rate request from insurers.
The rate adjustments will affect approximately 148,000 policyholders. The first increase will take effect on Sept. 1, with the second set to begin on Aug. 31, 2026. Under the terms of the agreement, insurers cannot request another rate increase until Sept. 1, 2027, the insurance department said.
The settlement prevents what could have been a lengthy and detailed rate hearing, originally scheduled to begin on May 31. Such hearings are part of North Carolina’s regulatory process when insurers and the Department of Insurance cannot reach an agreement on requested rate changes.
The North Carolina Rate Bureau initially proposed significantly higher increases, seeking an 82.9% rate hike for mobile home fire policies and a 49.9% increase for casualty policies. The bureau, which represents insurers in rate filings, cited rising costs in construction materials, labor, and claims expenses.
NCRB chief operating officer Jarred Chappell said the request reflected inflationary pressures, particularly the rising costs of mobile homes. According to Chappell, the price of new mobile homes in North Carolina increased more than 60% between 2018 and 2023.
“Add in climate change, which makes damaging storms stronger and less predictable, and you start to see the challenges this industry faces, like many others,” Chappell said in an email. “Our hope is to keep rates fair and adequate so that lots of insurers will want to write policies here and compete for people’s business.”
While the agreement resolves mobile home insurance rates, the insurance department and the rate bureau remain at odds over personal auto insurance rates. The NCRB has requested an average 22.6% increase for personal auto policies, which Causey has said is too high.
A hearing on the matter is scheduled for September, after which the commissioner will have 45 days to issue a decision. If no agreement is reached, the case could result in a protracted regulatory review, similar to past rate disputes.
