The new plan that requires all property owners in the state to pay for some of the damage to the coast in a disastrous hurricane season is already increasing insurance company competition, according to the North Carolina Department of Insurance.
The North Carolina General Assembly passed the beach plan reform bill, after coastal insurance rates recently increased significantly.
North Carolina Insurance Commissioner Wayne Goodwin says within days of the passage of the bill, an insurance company has announced it will begin to offer policies to coastal residents next month.
"I want to thank the General Assembly for its leadership in passing legislation that brings more competition to North Carolina and helps not only homeowners in coastal counties, but across the state. I'm pleased that HB 1305 is working so quickly to bring competition and avoid an insurance availability crisis," said Commissioner Goodwin.
The North Carolina Department of Insurance says the bill caps the exposure of losses for insurance companies, which will increase competition.
If a hurricane season racks up more than $1 billion in private claims, homeowners across the state would be billed to help cover the cost.
For more details on which company will start offering coverage, click here.