Public Comment Deadline for Proposed Insurance Hike

Residents and property owners in the Hickory Nut Gorge and across the state face uncertainty as North Carolina regulators close the public comment period today on a proposed 68.3% average statewide increase for dwelling insurance policies, a move that could have ripple effects in areas still recovering from Hurricane Helene.

At Tuesday's Chimney Rock town council meeting, town administrator Steve Duncan brought the issue to the audience's attention. Mayor Peter O'Leary and town council members consented to opposing the proposed rate hike and encouraged everyone to submit public comments.

The North Carolina Rate Bureau (NCRB) filed the request with the N.C. Department of Insurance (NCDOI). The proposed increase would phase in over two years: 28.5% in July 2026 and 30.9% in July 2027. Dwelling policies cover non-owner-occupied homes of up to four units, including rental and vacation properties, commonly known as short-term rentals or STRs, many of which are common in the Lake Lure area. There are 21 in Chimney Rock Village, and hundreds in Lake Lure.

Hurricane Helene caused significant property damage across the region, straining rebuilding resources and insurance markets. Residents and local officials warn that sharply higher insurance premiums could slow recovery by increasing costs for landlords and investors who maintain rental units or vacation properties, potentially leaving homes vacant and impacting local economies.

The Rate Bureau cites rising costs from more frequent severe storms and higher construction expenses due to inflation. In 2023, a similar dwelling insurance request for a 50.6% increase was ultimately negotiated down to an 8% statewide average.

Public comments are due by Nov. 19, submitted via email to 2025DwellingandFire@ncdoi.gov. All feedback will be shared with the NCRB before the department finalizes its review.

If NCDOI rejects the request and no settlement is reached within 50 days, a formal hearing will be scheduled. Local leaders in the Hickory Nut Gorge say the outcome could influence rebuilding timelines, rental availability, and broader economic recovery in the aftermath of Helene.

The insurance decision carries heightened stakes, particularly for the Bat Cave area, where storm-damaged homes remain vulnerable and stable insurance coverage is critical to supporting both homeowners and renters in the region.