Maybe all you people in the People's Think Tank can help me understand this story about a hike in homeowner's insurance rates.
North Carolina homeowners' insurance premiums will rise an average of about 4 percent -- not the 19.5 percent increase that insurers requested earlier this month. A settlement between state regulators and the insurance companies was announced Thursday. As expected, homeowners along the coast will get a much larger increase: an average of 18.7 percent, and as much as 29.8 percent in some areas.
I suppose we should be thankful that a 19.5% increase didn't go through, but everyone knows that was just a negotiating ploy in the never-ending bid by the extortion industry to maintain margins. That said, I still don't see the bigger picture. At a time when the price of almost everything is going south, led by declines in the price of oil and in the price of housing, what possible justification can there be for an increase in insurance rates?
According to Insurance Commissioner Long:
"We've reached a settlement that is fair to both consumers and insurance companies," Commissioner Jim Long said in a prepared statement. "No one likes to see their insurance rates go up, but the industry made a strong case for allowing some increases this year. The silver lining is that most consumers won't see nearly the increases that were initially proposed."