On Friday, in an effort to help homeowners whose homes are at risk of collapsing along North Carolina’s coast, Gov. Josh Stein and Commissioner of Insurance Mike Causey called on Congress to pass HR 3161, the Preventing Environmental Hazards Act of 2025, a bill co-introduced by US Rep. Greg Murphy, R-NC3.
Several beachfront homes in Buxton and Rodanthe have collapsed into the ocean in recent weeks due to severe weather events.
Since 2020, 27 oceanfront houses have collapsed into the ocean on North Carolina’s Outer Banks, including 16 houses just since this September.
“When these houses collapse, it isn’t just a tragedy for the homeowners,” Stein, a Democrat; and Causey, a Republican, said in a joint statement. “The destroyed houses also spread debris for miles, and risk people’s safety on our beaches. We respectfully urge the House Financial Services Committee to advance and Congress to pass H.R. 3161. The State stands ready to work with you to protect coastal communities, taxpayers, and our treasured Outer Banks.”
You might have seen reports and videos of houses on the Outer Banks collapsing into the ocean.
— Governor Josh Stein (@NC_Governor) November 14, 2025
We know that when these houses collapse, they don’t just represent a tragedy for the homeowners. The debris also spreads for miles and creates a threat to public safety on beaches.…
HR 3161 would help the state move from a stance of after-the-fact cleanup to proactive relocation or removal of oceanfront structures that are under threat. The bipartisan bill would authorize the National Flood Insurance Program (NFIP) to offer pre-collapse coverage, allowing homeowners to demolish or relocate condemned structures before they collapse into the ocean.
There are also concerns about the environmental impacts of the collapsed homes, including waste and chemicals from septic systems, air conditioning units, carpeting, lumber, and other materials.
The recommendation aligns with a key idea from a joint report by the National Park Service (NPS) and the North Carolina Department of Environmental Quality (NCDEQ), released in August 2024.
not enough attention being paid to the situation
Causey told Carolina Journal in a recent phone interview that he thinks it is a crisis for the people who live and work there.
“There’s not been enough attention paid to it in my opinion,” he said. “It is a huge issue not only for the Outer Banks and their local economy, but really for the whole state because Dare County, Hatteras Island, the National Seashore, the whole Outer Banks is a top tourist area. It’s in the billions of dollars in what that area contributes to our state’s economy.”
And it’s not just the housing situation. The overwash on Highway 12 is also causing issues, including children missing school, arriving late, or being dismissed early. In a recent example, students missed 12 out of 48 school days, according to the commissioner.
What’s causing the problem?
Climate change and the rise in sea level have been cited as reasons for the changes, but Causey said that one business owner he spoke with believes it is a man-made issue.
“He was talking about when the Navy first installed the jetties, there was a lot of controversy then, and that was probably over 60 or 70 years ago. It may have helped for a little while, but they have since deteriorated, and that caused further erosion on the beaches,” he told CJ. “He was telling me that the folks that settled there all had stories of every time there was a shipwreck, the hulls of those ships automatically created sandbars, and in his opinion, all of the money that’s been spent on building up sand dunes to protect Hwy. 12 has really been detrimental because it’s increased the erosion of the sand. In his view, it would be better just to let the water overwash (Highway)12 because he felt like that would build up more sand further out to protect it.”
Most homes along nc coast insured through nc insurance underwriters assoc.
The commissioner stated that 70% of the homes on all the barrier islands are insured through the North Carolina Insurance Underwriters Association, as most insurance companies do not want to write insurance in communities in the Outer Banks and the 18 coastal counties.
“That’s why the majority are either through what we call the Beach Plan or the Coastal Property Insurance Pool, and some are under the National Flood Insurance Program or private flood insurance,” he said.
Causey said for anyone across the state worried about their homeowners insurance increasing as a result of the situation along the Outer Banks, it takes about five years or more for any effects from natural disasters like hurricanes or tornadoes to impact the insurance market, so increases homeowners across the state are seeing today may have been a result of Hurricane Florence or storms around the same timeframe.
flood insurance is becoming a necessity for more people
He also noted that most people in the western part of the state didn’t have flood insurance when Hurricane Helene struck that area in September 2024, serving as a reminder of the need for flood insurance regardless of one’s location, as homeowners’ insurance typically doesn’t cover flood damage.
Causey encourages anyone who has questions about insurance, including claims, to call his office Monday through Friday from 8am to 5pm or visit the department’s website at www.ncdoi.gov.