When Hurricane Helene’s floodwaters receded last September, Alex Webber thought the worst was over. The co-owner of On Your Bike Café and repair shop in Marshall, North Carolina, had previously fled New Orleans after Hurricane Katrina, seeking higher ground in the North Carolina mountains. Instead, she faced 3 feet of mud, a gutted storefront, and an insurance denial letter. ‘They take your money and they weasel out,’ Webber said, reflecting on the still-scarred space on Marshall’s Main Street. ‘I came here thinking this was a climate haven, but there’s no safe place to live anymore.’
Webber’s struggle highlights a growing problem for almost every homeowner in North Carolina. Starting Sunday, the average North Carolinian will pay about $243 more per year due to a 7.5% statewide base-rate increase. While this is significantly less than the 42.2% increase initially requested by the North Carolina Rate Bureau, it still poses a significant burden for families rebuilding from Helene and other costly storms.
Insurance Commissioner Mike Causey negotiated the lower rate, capping any one territory’s increase at 35%. However, the relief is relative: coastal counties from Carteret to Brunswick will see rates rise 16% in 2024 and 15.9% in 2025, while fast-growing Charlotte faces back-to-back increases of about 9%. ‘Seven-and-a-half percent feels like a win on paper, but to the average homeowner, it’s still a significant hit,’ said Jon Ruggiero, vice president of sales at Raleigh-based Guardian Service. ‘And these increases won’t stop. Carriers lost money in recent catastrophes, so they’ll stagger more hikes over the next several renewals.’
Homes insured for $450,000 with a $1,000 deductible will see annual premiums jump from about $3,813 to $4,099, according to Guardian’s analysis. This increase is driven by a combination of stronger hurricanes, inland flooding, and high rebuilding expenses. ‘North Carolina is far from alone… this is a national crisis,’ said Jordan Haedtler, policy adviser with the Insurance Fairness Project. ‘Average premiums in the state are already up 29% since 2021, and climate disasters are making more communities effectively uninsurable.’
Re-insurance prices have soared following back-to-back billion-dollar disasters, while the cost of lumber, shingles, and labor remains above pre-pandemic levels. This forces insurers to set aside more money for potential claims. Experts suggest several strategies to mitigate the impact of rising insurance costs:
- Shop around annually for insurance quotes, as the ‘set-it-and-forget-it’ approach is no longer effective.
- Consider raising deductibles; moving from a $1,000 deductible to $2,500 can significantly reduce annual premiums.
- Make home resilience upgrades, such as installing a fortified roof, which can unlock substantial discounts.
- Utilize North Carolina’s roof-fortification grant program, which has helped about 15,000 homeowners harden their homes against hurricanes.
Webber’s experience also highlights the issue of outdated flood maps. Her café was outside the official FEMA flood zone, based on 1970s models, and she never purchased flood insurance. When Helene’s swollen French Broad River flooded downtown Marshall, the couple lost all their belongings. Their insurer denied the claim, citing a flood exclusion. ‘Not knowing the real risk cost us everything,’ Webber said. She now works a second job while her husband hand-polishes rusted bike tools recovered from the mud. A GoFundMe campaign keeps the café open, but the bike sales side remains shuttered.
The insurance crisis is not limited to coastal areas. Inland cities like Raleigh, Greensboro, and Winston-Salem are also feeling the squeeze. Raleigh’s average premium will reach about $3,413, just $67 below the state average. Ruggiero expects ‘catch-up’ increases in future filings for these areas.
For Webber, the next challenge is finding new coverage before her renewal. ‘Most small cafés run on a 6% margin,’ she said. ‘I don’t know how we afford it, but I have to try. We’re fighting for real, individual culture, not a downtown full of chain stores.’ Until then, she continues to work on restoring her business, hoping that the next storm stays on the map and her new insurer keeps its promises.
