David Ranii of Raleigh’s News and Observer wrote about efforts to reform the homeowners insurance ratemaking process. This is an important issue for the Alliance – homeowners need to know how insurance companies use high pressure tactics to charge consumers higher premiums.
A couple of important points for consumers:
A legal loophole for insurance companies – We knew that more and more consumers were getting hit with “consent to rate” letters that demand premiums above the regulated maximum. Now we’re seeing the full extent of this insurance company tactic: “Last year 40 percent of homeowners policies statewide charged higher than the maximum rates thanks to consent to rate, up from 23 percent in 2010.”
It’s about balance – The Homeowners Alliance supports a competitive insurance market that balances the needs of consumers with fair assessments of risk. Right now, that balance tips in favor of insurance companies, and homeowners deserve the chance to take a larger part in the conversation surrounding insurance ratemaking reform.
Want to take part in advocating for the rights of homeowners? Spread the word about our NC Homeowners Petition to your friends and family.