North Carolina Moves to Fund Homeowners Insurance Program

North Carolina lawmakers are working on a plan that they hope will keep homeowners insurance companies in the hurricane-prone state.North Carolina lawmakers are working on a plan that they hope will keep homeowners insurance companies in the hurricane-prone state.

A report in the Charlotte News and Observer describes the bill currently making its way through the state legislature which would require taxpayers to bail out a state hurricane fund known as the Beach Fund if a major storm causes damage in excess of $1 billion.

The newspaper notes that in some cases, homeowners could be assessed a surcharge on their homeowners policies of up to 10 percent depending on the damage caused by a storm. Supporters of the measure cite it as a way to keep insurers in the state, ensuring that consumers have sufficient options and access to reasonable rates.

The property industry has been trying to recover from a difficult year that saw its overall financial assets suffer as the stock market fell and as several major weather events caused significant damage in 2008.

With severe storms and flooding hitting different parts of the country each year, having a homeowners insurance policy you can trust may be more important than ever.