August hearing for home insurance increase

The Associated Press

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RALEIGH — North Carolina's top insurance regulator is scheduling an August hearing for insurance companies to explain their request to raise the cost of homeowners coverage by an average of 25 percent.

Insurance Commissioner Wayne Goodwin's office said Wednesday the hearing was needed after insurance companies represented by the North Carolina Rate Bureau provided too little detail on why they need such a large increase. Goodwin's staff said the requested rate increases may be excessive and unfairly discriminatory.

The rates were increased by an average of 7 percent increase starting in July.

Rate Bureau insurance operations director Sue Taylor says companies haven't had time to study Goodwin's reasons for calling a hearing, but that August is a reasonable time frame. Companies say the requested increase is mostly based on claims projections.

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Another rate increase of 25% on average? Of course many would complain to it especially the ones already availing the services. But of course we must not put all the blame to the long care insurance companies and its carriers. We must all understand that the cost of an LTC policy is completely dependent to the cost of the nursing industry. If the latter decided to increase their rate, let's say from $4/hour of a home aide to $7/hour, then the insurance company or carrier will have no choice but to adopt and increase their rates as well (SOURCE: http://www.completelongtermcare.com/resources/policy-types.aspx). It's all domino effect so I really find it unreasonable blaming an industry for increasing their rates without knowing the story on the other end.

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