MORE INSURANCE WOES as Allstate drops 16,000 policies

Allstate Corp. said Wednesday that it’s dropping property insurance coverage for about 12,000 homeowners in coastal South Carolina and 4,000 in coastal North Carolina.

Allstate says the reason for non-renewal is the increased hurricane risk and increased cost of reinsurance.

The second largest home insurer in South Carolina said it will stop renewing policies today in the Carolinas, said Renita Ward, Allstate spokeswoman for the Southeast region.

The non-renewals cover all property coverage - homeowner, condo, renter, mobile home or landlord’s package policy - and customers who have only property insurance with Allstate. Those with dual policies, such as automobile insurance and a homeowners policy, will not be dropped.

Community leaders said legislators and regulators need to step into action.

• “It certainly points to the need for our delegation and Department of Insurance to take this very, very seriously. The [real estate] market has slowed down on its own and you add something like this and it can have a devastating effect on a marketplace,” said Tom Maeser, analyst and president of the Fortune Academy of Real Estate.

• “I think the governor should make this a high priority,” Maeser said.

Affected by drops?

• In North Carolina, Allstate says the 4,000 customers can get wind coverage through the N.C. Insurance Underwriting Association - North Carolina’s beach plan.

• In South Carolina, the 12,000 customers can get wind coverage through their Allstate agent through a third party carrier called the Kimbrell Group, Allstate said.

• The Kimbrell Group is a non-admitted carrier, meaning it is not regulated by the state, according to the insurance department.

Source: Jenny Burns, The Sun News, Myrtle Beach, SC