State Farm Dropping Coastal Homeowner Policies

Hundreds of homeowners who live on one of North Carolina's barrier islands and are insured by State Farm will soon need to find a new insurance company.

That's because State Farm says it is no longer going to write homeowner policies on the barrier islands.

State Farm says it will impact about 1,600 homeowners. Homeowners will be getting the notices in March.

The insurance company says it affects all policies east of the Intracoastal Waterway, including the Outer Banks, the Crystal Coast and Topsail Island.

Company spokesman Russ Dubiski says the change will start with policies on May 1st. The company will start sending out notices in March.

He called it a difficult decision and that the barrier islands present a geographic challenge for the company. Dubiski says State Farm continuously accesses their exposure to loss and needs to protect their financial strength.

State Farm says it will continue to write policies for the coastal mainland.

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  • by FINALLY Location: Wilmington on Mar 13, 2010 at 01:05 AM
    Thank goodness! It doesn't make sense for them to be able to easily insure property that's OBVIOUSLY going to get damaged!!! Many of these "beach houses" are too close to the shore at high tide, much worse when storming!! At Wrightsville Beach, they tore up most of our beach to be sure that the millionaires don't have to "worry" as much. Why worry? The insurance company just pays them back anyways, build CLOSER to the beach!! Hey, maybe you could jump off of your roof and dive right into the ocean. Isn't it worth all that money wasted?!?! Then, the smart individuals that build/buy houses in "possible flood planes" get to pay higher rates b/c of these idiots! I'm so very happy that someone has finally put their foot down on this craziness! Now we'll have more room to walk on the beach and ENJOY it, not stare at all the "No Trespassing" signs 5 feet from where you're laying out!
  • by mnm Location: houston tx on Feb 3, 2010 at 09:24 PM
    State Farm has also sent notification they are dropping those affected by Hurricane Ike. I have been with State Farm for 20 years and not only have they refused to pay damages, and have violated every aspect of the code for insurance practice, now they are dropping my coverage. I am still trying to get my claim paid, and will have to file suit to get them to pay extremely obvious damages. They all lie, so you better have a tape recorder playing when you talk to one of them!
  • by agent Location: eastern nc on Jan 31, 2010 at 05:38 AM
    yes insurance companies are a for profit business and decisions like these are made at different times for many different reasons by all companies.. Please beware though that NCIUA is a market of last resort and will not offer as broad coverage as the standard insurance markets.
  • by jasper Location: wilmington on Jan 29, 2010 at 08:00 PM
    If some of you haters would research you would find Allstate,Nationwide and the others made the same decision years ago.
  • by Anonymous Location: Emerald Isle on Jan 26, 2010 at 12:48 PM
    If you think you are going to be affected by this, call your State Farm Agent...they probably can still service your account and write it through NCIUA. My agent explained all of this.
  • by Opie Location: Wilmington on Jan 19, 2010 at 06:06 PM
    Do not count of the following insurance companies stepping in to save the day for your property insurance needs. Travelers, Farmers USAA Hartford Safeco / Liberty Mutual Group Kemper Ameriprise (Costco / Amex Ins Adventure) Geico Raise your deductibles to offset the forthcoming increase in premiums and yes we are due...for catastrophic turmoil. Its only the law of large numbers and it will happen sooner than later. They are all running away as fast as possible. The NCJUA has been steadily increasing costal rates in the 18 coastal counties and the blacklisted counties is growing rapidly. We would be better off with Citizens a perfect world. American Strategic (A rated with A.M Best) would come into NC if the NJCUA wouldnt make them pay for past losses just to enter the state. They have very fair rates in FL, TX, LA, and SC. Just ask former state farm policy holders who have left State Farm before State Farm said goodbye to them. Maybe we can learn.
  • by Anonymous on Jan 16, 2010 at 03:58 PM
    I won't be going to State Farm for my insurance. I will keep looking.
  • by anon Location: nc on Jan 16, 2010 at 01:46 PM
    They should be able to drop them if they give them all of their money back that they have paid over the years.
  • by Capatalist Location: Tenn on Jan 16, 2010 at 12:10 PM
    Isn't this just a business decision? Aren't they just trying to maximize the profitability of their company, just as the free market allows (actually, encourages)?
  • by Audra Location: SoCal on Jan 16, 2010 at 08:52 AM
    Anon 9:52am: Yes.

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