North Carolina officials have increased wind insurance rates that will affect residents across the state.

Starting July 1, wind insurance rates in North Carolina will increase by an average of 5.3 percent. However, according to the state Department of Insurance, the hike in rates will only apply to secondary dwelling units, rather than primary homes.

Barry Smith, the Assistant Director of Public Affairs, stated, “It would apply to mainly second homes, rental homes. It doesn’t apply to apartments or primary residences.”

Although the increase may sound daunting to North Carolina residents, it is much lower than the original rate proposed by North Carolina’s Rate Bureau. The initial rate proposed by bureau was for an increase of 24.3 percent for wind insurance and 4.6 percent for fire insurance. Although the state declined to raise rates for fire insurance, it did agree to raise the price of wind insurance by as much as 11 percent in some areas.

According to some residents, the change in rates is ridiculous. Although primary residents will not be affected by the increase, North Carolina is a popular vacation spot and many residents also own vacation homes or rentals.

One resident who owns several vacation rentals in the state spoke to the Carteret County News-Times about the potential for the higher rates to affect tourism in the state. Higher insurance rates may lead to higher vacation rental pricing. Additionally, many residents of North Carolina also pay premiums for hurricane insurance to protect them from damage caused by tropical storms.

Coastline Residents May Require Additional Insurance for Hurricane Damage

In addition to wind insurance, many people living on the North Carolina coast line may require hurricane insurance. While wind insurance may cover damage caused by destructive winds and storms, hurricane insurance may be necessary to cover damage caused by water, tropical storms, and rain.

Hurricane insurance may cover damage sustained by homes, businesses, and other property. Wind and water damage to possessions, appliances, and furniture may also be covered by these insurance policies, as well as the cost of hotels or temporary housing if you are displaced due to hurricane damage to your home. Some hurricane insurance policies may also cover the costs of income lost due to a disaster.

However, many insurance claims result in lowball settlement offers. Victims of hurricane damage to homes and businesses may accept these offers in order to begin repairing their property as quickly as possible, without realizing they may be owed more.

Even if you have already accepted a payout from your insurance company regarding damage caused by hurricanes or destructive winds, you may be eligible to receive additional funds. Hiring a qualified attorney to review your claim may make it more likely for you to receive all the compensation you are entitled to.