North Carolina homeowners are being told to pay higher insurance premiums or risk losing their coverage under a regulation that allows companies to pay more than the state has approved.
The StarNews of Wilmington reported insurance companies are sending “consent to rate” letters under which homeowners agree to a higher rate or risk losing their coverage.
Terry Wilkerson of Wilmington says his insurer gave him 10 days to decide whether to accept an increase of more than 120 percent.
Republican Sen. Michael Lee of New Hanover County is on the Senate Insurance Committee. He says legislators need to look at the consent to rate law.
The state insurance commissioner last month ruled against any increase in homeowners’ rates. The N.C. Rate Bureau sought an average 25.6 percent increase statewide.
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