Last month’s tornadoes in North Carolina will probably mean a state-wide increase in the cost of homeowners insurance because of the extent of the damage, say insurance industry analysts. That’s the bad news.
The good news (sort of), at least according to the North Carolina Rate Bureau, is that the increase probably won’t even be as much as five percent, and isn’t likely to take effect until 2013.
But the increase probably would be less than 5 percent, and it wouldn’t take affect until at least 2013, according to the North Carolina Rate Bureau.
The other good news – at least for residents of places like Beaver Dam or Fayetteville, where devastation was extensive – is that tornado-related rate increases are calculated on a fifty-year average likelihood of risk, and are NOT location-specific, but spread across the state so instead of some rates going incredibly high, everyone’s rates will get increased just a little bit.
Kerry Hall, a spokesperson for the North Carolina Department of Insurance, the regulating agency for insurance rates, told the press, “We feel that people should not be worried that there will be a huge homeowner’s insurance rate increase because of the tornadoes.”