By Becky Long
Publisher
Clay County Commissioners expressed opposition to a proposed rate hike on homeowners’ insurance by passing a resolution during their Feb. 1 meeting condemning any increases.
The N.C. Rate Bureau is seeking approval from the N.C. Department of Insurance for an average statewide increase of 42.2 percent effective Aug. 1. The figure ranges from 4.3 percent to 99.4 percent, depending on where the counties are located. In Clay County the proposed rate is 8.5 percent.
The Rate Bureau represents insurance companies and is not a government agency.
Prior to approving the resolution, regional director of the N.C. Department of Insurance for western North Carolina, Ken Green noted that the N.C. Rate Bureau is a nonprofit that represents all insurance companies and is not part of the state insurance division. In other words, they request rates, but do not set them.
“The Insurance Commission can reject the request,” he said noting that in 2023, the request was 42 percent average, but they settled for 9 percent.
“The commissioner does not accept this,” said Green, referring to N.C. Dept. of Insurance Commissioner Mike Causey. “He is hoping they will come to an agreement. Commissioner Causey has denied every [suggested] rate increase.”
Green called the situation between the Rate Bureau and the N.C. Department of Insurance a “balancing act,” based on what the customer can afford and what the insurance companies need to stay liquid.
“Based on my experience there will be a rate increase, but not 42 percent,” he said.
Regarding the resolution opposing the 8.5 percent proposed increase in Clay County homeowners insurance, the document noted in part, “Egregious insurance rate proposals only harm Clay County families, making home ownership even more difficult.”
County commissioners’ resolution stated that homeowners will be priced out of the market or be penalized by being forced to raise their deductible levels in an attempt to offset the requested astronomical insurance premiums.
The resolution outlined the demographics of the county noting that the county is the third oldest by population in the state and many residents are on fixed incomes.
It pointed out that according to the last census, the median income for a household in the county is $31,397 and the median income for a family is $38,264. The per capita income for the county was $18,221. About 7.80 percent of families and 11.40 percent of the population were below the poverty line, including 14.60 percent of those under age 18 and 13 percent of those ages 65 or over.
“Based on those numbers, the requested increase in homeowner insurance premiums will drastically impact the financial ability for Clay County citizens to purchase and provide for themselves the necessities of life, such as food, shelter and medical care,” the resolution stated.
The final decision will be made by the N.C. Department of Insurance and Green noted that different rates will apply to different counties depending on location. For example, coastal counties will pay more than those in the mountains.
In other matters, County Attorney Merinda Woody advised commissioners to accept easement offers from the N.C. Department of Transportation for various construction projects. The county will receive $13,600 for a right of way in front of the Emergency Medical Services Building as part of a temporary construction easement. In addition, on a lot on Courthouse Drive they will receive $5,000 for right of way and near the old well close to Carroll House Apartments, the county will receive $5,900.
In another issue, commissioners approved a revised alcohol and drug testing policy which will allow for oral, fluid testing as an additional form for the Transportation Department to use in its testing.
Lake Silver, field representative for Congressman Chuck Edwards was on hand for the meeting, noting that Edwards is now on the Appropriations Committee. He reported that Edwards had requested $3 million for a new EMS facility in the county. The appropriations committee approved $2.5 million. “When the budget is passed, we expect the money to come your way.”
He said Edwards’ office also requested $1.5 million for broadband expansion in Clay County which the appropriations committee did not approve. “However, we are looking for other grant opportunities to give to Clay County for broadband expansion,” Silver said.