For those of us that live on the beautiful Outer Banks of North Carolina there are a few things we look forward to every year such as going to the beach, great fishing, surfing, seafood, and homeowners insurance rates going up. Well I guess insurance is coming off that list as we got the shock of our lives at the end of 2014. The NC Insurance Commissioner actually lowered homeowners insurance rates by 9% for North Carolina Coastal Communities. That's right lowered rates by 9%!! NC Insurance Commissioner Wayne Goodwin "cited numerous flaws in modeling used by the Rate Bureau to estimate potential losses from hurricanes. After considering all of the evidence and data available, I have determined that no factors or events justified the excessive rates requested by the insurance companies.”
All of this was brought about after the public outcry to have more transparency in the decision making process for rate increases. For over 20 years the insurance companies would request a large increase every year (20-35%) with only their data presented knowing that the state would grant them a smaller increase( 10-15%). It makes me wonder how much lower our rates would be if the "transparency" process would have started 20 years ago.
Score one victory for the consumer against the mighty insurance industry!!!
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