Homeowners Insurance in North Carolina is a big item in Raleigh this year. There are several bills being introduced that deal with homeowners insurance. The bills are there to try and help homeowners especially along the coast in flood zones. The problem is that if the legislation is too harsh on rates the insurance companies can choose to not write policies in those areas. Fewer companies is less competition which is higher prices.
The state regulates insurance rates now but insurance companies can get by this by having a homeowner sign a waiver agreeing to the higher cost. The insurance company just sends a letter and hopes the homeowner signs it and sends it back. If he doesn't then the insurance company cancels his insurance and he has to find a new policy. It looks like at least 40% of the policies written in the last year were higher then the state allows because of the waiver. To me it looks like the rate is too low or the system is not working very well. Hopefully the legislature in Raleigh will pass a common sense bill for homeowners insurance.
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