How the Coastal Insurance Hike Could Affect You
Posted: January 21, 2014 by Coldwell Banker Sea Coast Advantage
Don Bullard of Don Bullard Insurancespoke at the Coldwell Banker Sea Coast Advantage Wilmington office meeting today about the coastal counties insurance rate hike. If you own a home in one of the 18 coastal counties of North Carolina or are planning to buy, it’s important you educate yourself on this hike. Insurance companies want to raise the homeowner insurance rates by as much as 35% in many areas, because they’re afraid of losing their profits if North Carolina is hit by a large storm like Hurricane Sandy.
In his presentation, Don emphasized that no one should be panicking about the potential rate hike quite yet. Here is why:
- Rarely do the insurance companies get the full amount they’re asking for. They often ask for 3x the amount they really need.
- The approved amount is the cap, the amount insurance companies can go up to. Not all companies will adopt the hike and some of the providers Don Bullard Insurance works with didn’t adopt last year’s hike either.
- If the hike becomes a judicial issue and the courts decide that the insurance companies are asking too much, the amount homeowners are charged, including interest, will be refunded.
However, it’s important to note that, in the past, public feedback has had a big effect on the percentage approved. So, now is the time to voice your opinion on the matter. Here is how local zip codes could be affected:
Area Code | Zip Codes | Rate Increase |
52A | Eastern Coastal areas of Brunswick, Carteret, New Hanover, Onslow and Pender Counties Zip codes: 28403, 28404, 28405, 28406, 28407, 28408, 28409, 28410, 28411, 28412, 28422, 28428, 28443, 28445, 28459, 28460, 28461, 28462, 28467, 28468, 28469, 28470, 28480, 28511, 28516, 28520, 28524, 28528, 28531, 28532, 28533, 28539, 28553, 28557, 28570, 28577, 28579, 28581, 28584, 28589 | 35% |
52B | Western Coastal areas of Brunswick, Carteret, New Hanover, Onslow and Pender Counties Zip codes: 28401, 28402, 28420, 28421, 28425, 28429, 28435, 28436, 28447, 28448, 28451, 28452, 28454, 28456, 28457, 28466, 28478, 28479, 28518, 28521, 28540, 28541, 28542, 28543, 28544, 28545, 28546, 28547, 28555, 28574, 28582 | -2.7% |
Other counties can be found here.
If you’re worrying about being affected by the rate hike, Don said the best thing to do (right after you voice your opinion) is shop around. Take advantage of those companies that do not plan on adopting a rate hike. There are insurance providers that feel they already receive enough from their customers.
If you do shop around, please consider contacting our in-house insurance agent, Holly Angermeier, at (910) 332-1080 for a quote. Meghan Riley