Homeowners Face Rising Insurance Costs Amid Climate Threats

Insurance rates for homeowners in North Carolina are set to increase by an average of 7.5% in 2025 and 2026, with beach communities facing even higher hikes of 16% and 15.9% respectively, following a settlement between the N.C. Department of Insurance and the N.C. Rate Bureau. This agreement comes after the Bureau initially sought a much larger increase of 42.2% statewide and up to 99.4% in some coastal areas. Meanwhile, a U.S. Treasury Department report highlights a nationwide trend where homeowners in high-risk areas for climate-related events are paying significantly more for insurance, with premiums in the most affected regions averaging 82% higher than those in safer areas. The report also indicates that homeowners in the riskiest ZIP codes face higher non-renewal rates from insurers, exacerbating accessibility issues. Overall, the data reflects a concerning rise in insurance costs linked to climate change and natural disasters, posing challenges for both consumers and insurers alike. As the insurance landscape evolves, these trends raise alarms about the long-term affordability and availability of homeowners insurance in the U.S.