Insurance Companies Request Rate Increase for Dwelling Policies

A Dwelling insurance rate increase was recently filed at the North Carolina Department of Insurance (NCRB) with a requested effective date of July 1, 2020.   NCRB represents all companies that write property insurance in the state. They requested a 19.2% increase based on territory.  

The filing comprises an increase request in wind (24.3%) and fire (4.6 %) coverage. These rates are covered by territory at 5% for fire coverage and 30% for extended coverage. Keep in mind that dwelling policies are not homeowners insurance policies. Dwelling policies apply to residences not occupied by the owner on a full-time basis, which include investment and rental properties.

The Dwelling insurance filing needs to be reviewed by experts in the Department of Insurance to determine whether any adjustments are required. A proposed hearing will be requested if the NCDOI and Rate Bureau don’t agree on the proposed rates, which will allow them to determine the most suitable rate level.

The Rate Bureau requested revisions to the current territories, which are the same territory definitions applicable to policies for homeowners.

Dwelling insurance coverage

Dwelling coverage, also known as “dwelling insurance,” is the portion of the homeowners insurance policy that covers repairs or rebuilding the structure when it’s damaged by a covered hazard.   Some perils or hazards such as fire, hail, vandalism, falling objects, and windstorm are covered by standard homeowners insurance policies while others such as floods and earthquakes may not be covered. This is something you have to check with your insurance company as coverage may vary by geographical location and/or your specific insurance carrier.    

What’s your dwelling?

Most people believe their dwelling is just the physical structure when in fact dwelling coverage can protect much more than that. Dwelling coverage protects your home plus other structures attached to it, including your garage. When an attached structure is damaged by a hazard that’s covered, your homeowners insurance will help pay the costs to repair or rebuild the structure. When attached to your home, a deck or front and back porch may be considered as well, and thus covered by the dwelling portion in your homeowners insurance policy.

Structures not covered by dwelling insurance

 If you have a property that’s not connected to your house, and it’s not eligible as part of your dwelling such as a detached garage or fence, most likely it’s not protected by dwelling coverage. These should be protected by another part of the homeowners’ insurance known as other structures coverage. Dwelling coverage is subject to limits and deductibles with the limits being the maximum amount your insurance will pay to cover your losses and your deductible is what you pay out of pocket before your insurance kicks in. You should read your policy to learn about these things or ask an insurance agent to adjust them to fit your specific needs.

Nobody expects their home to be damaged, but in the event it happens, dwelling coverage will help you cover the repairs.  

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