Why the rate went up on October 1
Rentals and other homes of up to four units that are not the owner’s primary residence are usually insured on a dwelling policy, not a homeowners policy (NC Department of Insurance, April 22, 2026). Base rates for most of these policies are proposed by the N.C. Rate Bureau, which represents insurers, and approved or settled by the Commissioner of Insurance.
The Rate Bureau asked on October 30, 2025 for a statewide average increase of 68.3% over two years. The Commissioner settled on April 22, 2026 for an average of 5% a year: the first 5% for new and renewal policies effective on or after October 1, 2026, and the second for policies effective on or after October 1, 2027 (NCDOI, April 22, 2026; Rate Bureau Circular P-26-5, April 23, 2026).
The 5% is a blend. In year one the fire portion of dwelling rates goes down 5% and the extended coverage portion, which includes wind and hail, goes up 7.3% statewide (Rate Bureau Circular P-26-5, Exhibit 1). How your premium splits between the two shapes what you see.
Why your increase may not match 5%
The settlement sets average base rates. Your premium can also change with your coverage amount, deductible, claims or credits. Three North Carolina rules help when you read the bill:
- Consent to rate. For homes of up to four units, an insurer may charge more than the Rate Bureau rate under the Commissioner’s rules, and must print both the approved-rate premium and its own premium on the declarations page (N.C.G.S. 58-36-30(b1), checked October 16, 2026).
- Advance notice. An insurer that changes your premium rate must give written notice at least 15 days before the change takes effect (N.C.G.S. 58-36-45, checked October 16, 2026).
- The state pools. The Rate Bureau’s chief operating officer said state pools now cover 70% of the dwelling market in North Carolina (Island Free Press, April 24, 2026). On our coast that usually means the Coastal Property Insurance Pool, run by the North Carolina Insurance Underwriting Association (N.C.G.S. 58-45-5).
What to do first
- Compare last year’s declarations page with this year’s. Check the coverage amount, deductibles and each premium line, and look for a consent-to-rate notice.
- Ask about wind mitigation credits. The settlement revised windstorm mitigation credits, including credits for fortified roofs (Rate Bureau Circular P-26-5; NCDOI, April 22, 2026). Ask your agent what proof your house would need.
- Shop before the next renewal. An independent agent can quote several companies and pool coverage where it applies. Ask whether each quote is at the approved rate or a consent rate.
- Call the Department of Insurance if something looks wrong. Its toll-free line is 855-408-1212 (ncdoi.gov, checked October 16, 2026).
- Rerun the rent math. Rent minus mortgage, taxes, the new premium, repairs, vacancy and management. Insurance appears among the rental expenses in IRS Publication 527 (checked October 16, 2026); a CPA can tell you how that applies to you. North Carolina bars counties and cities from regulating rent (N.C.G.S. 42-14.1), but your lease controls when rent can change.
Your options as a landlord
- Keep it and adjust. Shop the policy, pursue credits, and raise rent at renewal if the market supports it. With low-rate financing or a long-term plan, this is often the best answer.
- Sell with the tenant in place. Investors and some other buyers will buy a rented house as it is. We explain how that works in Can I sell my rental house with a tenant still living in it in NC?
- Wait for the lease to end and list it. Vacant and repaired, the house reaches the full market, including buyers who plan to live in it.
- Take a cash offer. This trades some price for a fixed date and no repairs.
The settlement already sets a second average 5% for October 1, 2027 (NCDOI, April 22, 2026), so run your numbers with that in mind.
Listing versus a cash offer: an honest comparison
Listing usually nets more when you have time, equity and a house in good shape, and it is often the better choice. Our sister brokerage, Tidal Realty Partners, can give you a listing estimate. A cash sale trades some of that money for speed, certainty and no repairs, which tends to fit when the house needs work, the tenant situation is hard, or you manage it from far away. Our page for tired landlords shows how we put both numbers side by side, and Cash Offer vs. Listing Your House: An Honest Framework walks through the trade-offs.
County notes for the Cape Fear coast
New Hanover, Brunswick, Pender and Onslow are in the state’s “coastal area” for the insurance pool, and the barrier islands south and east of the Intracoastal Waterway are in its separate “beach area” (N.C.G.S. 58-45-5, checked October 16, 2026). For the October 1, 2026 change, the Rate Bureau’s exhibit shows the same building rate changes in every rating territory, so coastal and inland rentals saw the same percentage change in base rates, even though coastal premiums start higher (Rate Bureau Circular P-26-5, Exhibit 1).
Frequently asked questions
How much did North Carolina dwelling insurance rates go up on October 1, 2026?
Base rates for dwelling policies rose an average of 5% statewide for new and renewal policies effective on or after October 1, 2026, under a settlement the Commissioner of Insurance approved on April 22, 2026. Within that average, the fire portion went down 5% and the extended coverage portion, which includes wind, went up 7.3% (NCDOI, April 22, 2026; Rate Bureau Circular P-26-5, April 23, 2026).
Is a dwelling policy the same as homeowners insurance?
No. A dwelling policy usually covers a residence of up to four units that is not the owner’s primary residence, such as a rental or investment house. A homeowners policy covers the home you live in, and the 2026 dwelling settlement did not change homeowners rates (NCDOI, April 22, 2026; Island Free Press, April 24, 2026).
What does consent to rate mean on my rental policy?
It means the insurer is charging more than the rate approved through the Rate Bureau, which North Carolina allows for homes of up to four units if the insurer follows the Commissioner’s rules. The declarations page must show, in large bold capital letters, both the approved-rate premium and the premium being charged (N.C.G.S. 58-36-30(b1), checked October 16, 2026).
Will my rental insurance go up again next year?
The settlement sets a second statewide average increase of 5% for dwelling policies effective on or after October 1, 2027 (NCDOI, April 22, 2026). Your own renewal may still rise more or less than that, depending on your coverage, deductible, credits, claims and whether you are on a consent rate.
Questions about your situation? Call or text (910) 372-6720.
Sources: NC Department of Insurance, Commissioner Causey Negotiates Dwelling Rate Settlement With Insurance Companies (ncdoi.gov, April 22, 2026, checked October 16, 2026); N.C. Rate Bureau Circular P-26-5, Revised Dwelling Fire and Extended Coverage Insurance Rates, with Exhibit 1 (ncrb.org, April 23, 2026, checked October 16, 2026); Island Free Press, Settlement limits rental home insurance hikes to 5% in each of the next two years (April 24, 2026, checked October 16, 2026); N.C.G.S. 58-36-30, 58-36-45, 58-45-5 and 42-14.1 (ncleg.gov, checked October 16, 2026); IRS Publication 527, Residential Rental Property (irs.gov, checked October 16, 2026); FEMA FloodSmart, What you need to know about buying flood insurance (floodsmart.gov, checked October 16, 2026).
