This is on top of increases we had already seen during recent years. This is not our first rodeo.
Carolina Journal provides the details.
North Carolina has “socialized” the risks that are covered with homeowners’ insurance premiums. Those who own homes in the central and western parts of North Carolina have been asked to pay more to subsidize the premiums of those in the eastern part of the state who have a much greater risk of damage from hurricanes and tropical storms.
Interestingly, North Carolina regulates the rates insurance companies charge instead of allowing the free market to set rates. The state of California has recently been criticized by conservatives on the national scene because it does this also; and its restrictive stance toward insurance companies’ rates– combined with its negligence on limiting damage due to fires– drove some insurers to cancel policies and withdraw from the state.
I wonder if premiums might be lower in North Carolina if we had a free market instead of government setting the rates.
TC, your question needs to be answered by the legislature. Is that possible ?
It ought to be possible, Fred, but I don’t know if they will be willing to tackle this sacred cow.
But the mere premise that we ought to have state government setting rates when there is a huge number of property and casualty insurance companies in competition with each other seems inappropriate to me.
Interesting concept to subsidize the people who are rich enough to have a beach cottage. On the backs of the masses who aren’t that wealthy.
Actually, government subsidizes in this direction lot more than we imagine.
Healey, I don’t know if this is a “norm” among all the various coastal states to socialize their insurance risk throughout the state. I think most people are completely unaware it is happening.