North Carolina Settles Mobile Home Insurance Rate Dispute, Secures Modest Increases

The North Carolina Department of Insurance has reached a settlement with the North Carolina Rate Bureau, resolving a contentious legal dispute over proposed rate hikes for Mobile Home Fire (MH-F) and Mobile Home Casualty (MH-C) insurance policies. The agreement, announced this week, establishes a statewide average increase of 11% per year for MH-F policies and 8% per year for MH-C policies, to be implemented over the next two years.

The approved increases are notably lower than the Rate Bureau’s original request. On April 8, 2024, the Rate Bureau, which represents insurance companies operating in North Carolina and is independent of the Department of Insurance, sought an average statewide increase of 82.9% for MH-F policies and 49.9% for MH-C policies. The settlement scales back those figures significantly, saving mobile homeowners an estimated $10 million annually in premium costs compared to the initial proposal.

“I am happy to announce that North Carolina mobile homeowners will save more than $10 million a year in premium payments compared to what the insurance companies requested,” said Insurance Commissioner Mike Causey. “I am also glad the Department of Insurance and insurance companies have avoided a lengthy, expensive administrative legal battle.”

The rate adjustments will roll out in two phases. The first set of increases will apply to new and renewed policies starting on or after September 1, with the second set taking effect on August 31, 2026. Under the terms of the agreement, insurance companies are barred from requesting further rate hikes before September 1, 2027. The changes will impact approximately 148,000 policyholders across the state.

Both MH-F and MH-C policies differ from standard homeowners’ insurance by including flood coverage. While the two programs share similarities, MH-F offers protection against a wider array of risks. The settlement eliminates the need for a previously scheduled hearing on May 21, bringing a swift conclusion to the dispute.