The Property Insurance Fairness Act, which recently passed the North Carolina House, will force insurance companies to provide more information to consumers about rate increases. The legislation now moves to the Senate’s Committee on Insurance.
Many homeowners have received high-pressure “consent to rate” letters from their insurers, demanding they pay rates above the regulated maximum. The Property Insurance Fairness Act will require insurance companies to disclose the lower regulated rate. This information will help homeowners negotiate with their existing insurer or shop for better deals in the insurance market.
Insurers have been using the “consent to rate” legal loophole to force consumers to pay more than the legally regulated homeowner insurance rate. Last year, 40 percent of homeowners insurance policies charged more than the regulated maximum rate. The Property Insurance Fairness Act will help consumers make more informed choices about their insurance.