The entire basis for the proposed [homeowners insurance] rate increase is based on flawed data and analysis.
First, the increased cost of replacing property due to the increased risk of wind and flood damage in coastal N.C. due to hurricanes. In fact, wind and flood damage in N.C. is not limited to hurricanes on the coast, as history shows that wind damage from hurricanes often takes its toll well inland, west of I-95. In addition, wind and flood damage is not limited to hurricanes, but includes other wind events such as tornadoes that often occur west of I-95.
Second, to claim that wind and flood on the coast puts insurance companies at higher risks is a fallacy since most insurance companies have abandoned homeowners to the "wind pool" and flood insurance is covered by federal flood insurance. The insurance companies are at no higher risk due to these events because they no longer insure homeowners against these risks.
To use the unproven claim that the coast is at higher risk to wind and flood damage and therefore the claims against insurance companies is higher is an outright untruth since the insurance companies are not responsible for damages from these events.
More disturbing, however, is the timing of this proposed rate increase. During the election for a new insurance commissioner, this seems to be a win-win strategy for the current commissioner. Mr. Wayne Goodwin has already touted his undocumented savings to homeowners in numerous television ads. Now he is afforded the opportunity by the insurance companies and the insurance Rate Board to deny all or part of the proposed ridiculous homeowner insurance rate (30 percent for coastal N.C.). Mr. Goodwin can deny all or part of the proposed increase, then release new political ads on how he again saved the homeowners of N.C. millions of dollars in premiums. While all along, you the homeowner will be paying more for insurance that the insurance companies are not liable for but that will be paid under the Federal Flood Insurance and "Wind-Pool" insurance programs, and by all the taxpayers in N.C. and the U.S.
In the end, it is we the people who pay, while giving Mr. Wayne Goodwin another false issue on which to campaign.
Kenneth Lang, Stella