Rising Insurance Rates in Western North Carolina: The Role of Increased Claims
If you’re a homeowner in Western North Carolina, you may have noticed a steady increase in your home insurance premiums. From Asheville to Boone, many residents are asking the same question: Why are my rates going up, even if I haven’t filed a claim? The answer lies in the rising number and cost of claims across our region—and the impact those claims have on insurers’ risk assessments.
Western North Carolina: A Changing Risk Landscape
Western North Carolina has long been known for its natural beauty—rolling mountains, lush forests, and a moderate climate. But in recent years, our region has seen an uptick in extreme weather events and environmental challenges that are driving up home insurance costs.
Let’s break down some of the key factors at play:
1. Hailstorms and Roofing Claims Are on the Rise
Although we're not as hail-prone as the Midwest, Western North Carolina sees its share of spring and summer hailstorms. After these storms, it’s increasingly common for roofing companies (many from out of state) to blanket neighborhoods with offers for free roof inspections. Homeowners are often encouraged to file insurance claims, even when hail damage is minor or purely cosmetic.
The Haag Engineering Hail Damage Study shows that hail under 1¼ inches in diameter rarely causes functional damage to asphalt shingles. Still, many roofs in our area are being replaced after storms with smaller hail, contributing to a spike in insurance claims. When a large number of policyholders in a zip code or county file similar claims after moderate storms, insurance companies respond by raising premiums for everyone in the region.
2. Rising Costs of Materials and Labor in the Mountains
Building and repair costs in the mountains have gone up and are likely to continue climbing. Supply chain delays, inflation, and a shortage of qualified contractors are making everything from roof repairs to siding replacements more expensive. What might have cost $8,000 to repair five years ago could now cost $12,000 or more. These higher claim costs mean insurers must raise premiums to balance their books.
3. Localized Weather and Water Damage
As we know all too well, Western North Carolina is no stranger to heavy rain, flash flooding, and high winds. Mountainous terrain increases the risk of landslides, runoff, and drainage issues, which can lead to water damage and erosion-related claims. In counties like Buncombe, Henderson, and Haywood, insurers are closely watching the increasing frequency of these localized events.
4. Aging Homes and Rural Infrastructure
Many homes in this region are older or located in rural areas where infrastructure such as electrical systems, plumbing, and septic may not be up to modern standards. These homes are more prone to issues that lead to claims, such as electrical fires, pipe bursts, or foundation problems. The older the home and the farther it is from municipal services, the more costly it can be to insure.
What Homeowners in WNC Can Do
While some trends are beyond your control, there are proactive steps you can take to help manage your premiums and protect your property:
Be Selective With Roofing Contractors: Avoid companies that pressure you into filing a claim. Ask for documentation, check references, and make sure they’re licensed in North Carolina. Getting an unbiased look at the roofing system by a licensed home inspector can also be a great idea.
Consider the Long-Term Impact Before Filing a Claim: If damage is minor, consider paying out of pocket. Frequent or unnecessary claims can raise your individual rates and contribute to regional increases.
Be pro-active on Home Updates: Repairing an aging roof, upgrading electrical systems, or adding storm-resistant features can reduce your risk profile and possibly lower your premium.
Perform Regular Maintenance: Gutter cleaning, grading, and tree trimming can go a long way in preventing storm and water damage.
Review Your Policy Annually: Prices and coverage can vary. Shop around and ask your agent if you're eligible for discounts (e.g., bundling home and auto, having a monitored security system, or being claim-free).
Final Thoughts
Home insurance rates in Western North Carolina are rising, driven by a mix of increased claims, higher repair costs, and evolving weather risks. While hail and roofing claims may seem harmless or even routine, it’s important to keep in mind that not all damage is as urgent as it seems and unnecessary claims hurt everyone in the community over time.
By staying informed, maintaining your home, and being selective about when and how you file claims, you can play a role in keeping insurance costs more manageable for yourself and your neighbors.