Navigating the potential bumps in the road when buying a beach house could be made smoother, especially with the expertise of a trusted real estate professional by your side. The projected cost increase in 2024 for beach house enthusiasts might seem daunting, as according to an article in the Triangle Business Journal on Aug 03, 2033, “Owning a Beach Home in NC Could get More Costly as Insurers Seek 50% Rate Hike” in dwelling insurance rates for second-home owners.
Dwelling insurance, distinct from typical homeowner's insurance, is tailored for residences not occupied by their owners, encompassing vacation properties and rental units of up to four. The combination of rising property values and inflation has prompted insurance companies to seek adjustments. If approved by the North Carolina Department of Insurance, this change is slated to take effect from June 1, 2024, though its approval is not guaranteed.
Mike Causey, the North Carolina Insurance Commissioner, acknowledges the substantial nature of the Rate Bureau's request, suggesting that justifying such a significant increase would be an uphill task. As the North Carolina Department of Insurance invites public feedback, Causey welcomes input from property owners, investors, and those involved in rental properties.
While the outcome of the Rate Bureau's proposal remains uncertain, at Carl Johnson Real Estate we always have your best interest in mind. With the prospect of owning a beach house becoming more complex in the coming years, enlisting the aid of an experienced realtor is key. Call us TODAY 919-880-0904 and with Carl Johnson Real Estate by your side, you can better navigate the changing landscape of beach house ownership and make informed decisions.
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