Homeowners in Asheville Brace for Insurance Rate Hikes: Here’s What to Expect

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In a move that has sparked widespread discussion among homeowners in Asheville and across North Carolina, insurance premiums are set to rise in the coming years.

Following a settlement between the North Carolina Department of Insurance (NCDOI) and the state’s insurance industry, base rates for homeowners’ insurance will increase by an average of 15% statewide by mid-2026.

However, the impact on residents in Asheville and surrounding areas will be slightly less pronounced.

A Phased Approach to Rate Increases

The approved rate hikes will roll out in two phases. Beginning on June 1, 2025, homeowners across North Carolina will see a 7.5% increase in their base rates.

Another 7.5% increase will follow on June 1, 2026, bringing the total average hike to 15% over two years.

However, for residents of Buncombe and Henderson counties, which include Asheville, the increases will be somewhat milder. Homeowners in these areas will face a 4.4% hike in 2025, followed by an additional 4.5% in 2026, totaling an 8.9% rise over the two-year period.

A Compromise Amid Growing Costs

The settlement marks a compromise between the NCDOI and the North Carolina Rate Bureau, which had initially proposed a much steeper 42.2% average statewide increase.

The Rate Bureau, representing the insurance industry, cited rising costs associated with inflation, natural disasters, and rebuilding expenses as key drivers behind the proposed hikes.

Commissioner Mike Causey emphasized that while the settlement is not ideal, it balances the needs of the insurance industry with the state’s commitment to keeping premiums affordable for residents.

“This agreement prevents an even larger increase that would have burdened homeowners across the state,” Causey stated. “We’re trying to protect consumers while ensuring the insurance market remains stable and capable of addressing future risks.”

What’s Driving the Rate Increases?

The rising costs of materials, labor, and the increasing frequency and severity of natural disasters are placing significant financial pressure on insurers.

From hurricanes and floods to wildfires, these events have led to substantial claims payouts in recent years. Inflation has further amplified the cost of rebuilding and repairs, making it challenging for insurers to maintain sustainable operations without raising premiums.

Local Impact in Asheville

For homeowners in Asheville, the relatively lower rate increases compared to the state average are welcome news, though they still present challenges for budgeting and financial planning.

With the cumulative 8.9% increase spread over two years, many residents are exploring ways to mitigate the impact of higher premiums.

“While I’m relieved the hike isn’t as steep as originally proposed, any increase in living costs can be tough,” said Asheville resident Carla Thompson.

“I’m already looking into home improvements that could qualify for discounts, like upgrading our roof and adding storm-resistant features.”

Preparing for the Changes

Experts advise homeowners to review their current policies and explore options for reducing premiums.

Actions such as bundling insurance policies, increasing deductibles, or investing in home safety upgrades could help offset some of the additional costs.

Additionally, residents should stay informed about potential future changes to insurance regulations or programs aimed at supporting those most affected by rate hikes.

Looking Ahead

While the approved rate increases are less severe than initially feared, they reflect the growing challenges of managing risks in an era of rising costs and climate uncertainties.

As Asheville homeowners prepare for the changes, the broader conversation about balancing affordability and sustainability in the insurance industry is likely to continue.

For more updates on this story and other developments affecting North Carolina homeowners, stay tuned.

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