State Farm dropping beach policies
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An insurance company's decision will mean some big changes for coastal homeowners. WWAY has learned State Farm is dropping coverage for homes east of the Intracoastal Waterway.

State Farm says starting may first it will no longer renew policies for property on barrier islands up and down the coast. Policy holders will start getting notices in the mail in March. State Farm says the change will affect around 1,600 homeowners. The move is leaving many families with questions about how they will insure their homes.

"It would be hard to find someone else to insure if State Farm isn't going to handle it," Wrightsville Beach homeowner Debra Rallis said. "I don't know who else will."

State Farm's plan also means canceling many personal article property policies east of the Intracoastal Waterway. That's insurance that covers items with special value like artwork and jewelry.

The Department of Insurance says it knows about State Farm's plans, but a spokesperson says the department does not have the jurisdiction to keep the insurance company from making these changes.

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What a joke. Another insurance company that stops offering insurance because they do not want to take the risk. The best is the department of Insurance in this state's response that they do not have the jurisdiction to stop the insurance company from making thesechaanges. Real simple. If they do not want to provide insurance to everyone in a particular State they should not be allowed to provide any insurance. Does anyone think their rates are going down because of this? Think again. Plus, in most cases there were so many caveats on the Homwowners Policy that they were not covering loses from WInd or Flodding anyway.

This is wonderful news. I only hope this will bring down the cost for the rest of us! It is about time that insurance companies stop insuring people who put themselves in harms way. The current situation is similar to insurance companies giving auto insurance to unlicensed alcoholics but they don't! The message here is clear, don't build your house on an island which moves due to natural forces and occasionally gets bombarded by this planet's strongest storms.

how quick the uninformed are to leap.

Most companies place the wind through the "Wind Pool" which eliminates that cause of loss, from the standard policy when a hurricane hits.

Flood is excluded and must be purchased seperately -- most often through the National Flood Plan.

More dollar damage was sustained in areas west of Route 17, all the way to Raleigh, than at the beach during Hurricane Fran and Bertha. Floyd caused more damage in Goldsboro, Tarboro, and Rocky Mount than it did at the coast.

So much for any facts in your message.

But of course, your rates will come down. Ha!

Any insurance company licensed with the NC Insurance Commission to do business in NC should be reqiured to provide coverage to any homeowner in the state. However, the rates should be much higher for those on barrier islands than other homes in less risky locations. If someone is inclined to build on the ocean front, they should be able to get insurance, but should pay accordingly.

State Farm is not the only insurance company. Your best bet is to call an Independent Insurance Agency that will have several carriers to shop from. There were a lot of negative claims against State Farm after Hurricane Katrina for paying out. Then they quit writing policies in some gulf coast states completely. I'd stay away from captive companies because you'll end up having to switch to another insurance agent. An Independent Agent will always be able to shop different company's for you.

to my knowledge. state farm is only non renewing barrier islands ( bald head island, oak island). which all other insurance companies have been doing for years. State Farm is not the first, and wont be the last. It is actually one of the last companies in town that can write the wind and hail insurance/hurricane all together on one policy for an affordable price, without requiring auto insurance in effect first. Or jacking up the rates accordingly.

Do not trust any insurance company,

Who will pay? We will.. There will be a insurance pool setup just like there is for auto insurance. You know, the reason why we pay higher auto insurance so the poor driver and drunks can get insurance.

>Who will pay? We will.. There will be a >insurance pool setup just like there is for >auto insurance.

There already is an "insurance pool." It's called the BEACH Plan and it provides very basic coverage for wind, fire, theft, etc. No replacement cost coverage. It costs a bit more and has limits on the amount of coverage. The Legislature mandated that all companies providing that type of insurance in NC have to participate and share the risk.

It's called "The Beach Plan." It's administered by the state and horribly underfunded.

State Farm was by far the biggest whiner, crying that they were going to go bankrupt because of the payouts of one storm, hurricane Fran. Sure, a lot of money was paid out, even more wasn't because of the fine print clauses. I know many families that were royally screwed by Sate Farm and their "hidden exceptions". I wouldn't use them in the first place...ever. Coverage looks great on paper, but when taken to task, you would think you were dealing with "AAA Backflash and Assoc.".
I wish no bad luck or circumstance on anyone, but the inland damage that occurred from hurricanes Hugo and Floyd flooded and destroyed more inland "protected" property than hurricanes have on the east coast in 20 years! Lets hope that State Farm can fill the empty voids of coastal properties with those in Tarrboro, Wilson, Raleigh, Greenville, Washington, the Tar River Basin, The Pamlico river Basin, the Trent river Basin, Charlotte and Linville Ridge. All of these areas sustained severe damage from Hugo in the 80's and Floyd in the 90's and are nowhere near a damned barrier island.
It appears that once again, the insurance industry is only legalized greed, deception and thievery, a title once only given to Gypsies that roamed the countryside without credentials, pilfering from hard working and honest folks.

Fran just about destroyed my home. My chimney was in my attic, I had rain pouring into my dining room through a six by six hole in the roof, a rear deck lying flat on the ground, and facia, soffit and gutters ripped apart everywhere. These were all caused by five immense trees that came down on my house. Oh, I also had a crushed fence.

My agent offered to find me temporary lodging the minute I called in. The adjuster showed up within a week and just kept adding zeroes. Within a few months my home was totally rebuilt.

They were just as quick, couteous, and professional when a windstorm stripped my roof in a Mojave sandstorm and when a pipe burst and flooded my house in California. About ten years ago I had a new heat pump less than a week after lighting killed mine.

I've had State Farm for auto since 1973, for homeowner's insurance since 1988. They have never let me down and I recommend them to anyone.

You hit the nail on the head Common. I led adjuster teams to Alabama in 2004-2005 and Fort Lauderdale in 2005-2006.

The challanges were not for the folks who understood their policy and deductible. The problem was often the Insured property owner who bought a bare bones policy with high deductible versus an all risk policy.

Sort of like the difference between buying a Chevy and an Escallade. You get what you pay for.

These posters also forget all policies are filed and approved with the Department of Insurance. Within the "fine print" is a toll free number to the Department of Insurance for anyone to use when they feel their claim is not being properly adjusted.

The irksome thing I observed, in both states, was the number of renters with no renters insurance who stood around crying to the media about the unfair society in which they lived and then belly ached because the FEMA team was not immediately there with all the freebies and handouts.

Why anyone living in an apartment would need a chain saw was beyond me. But in November, 2004, I watched folks line up in Evergreen, Alabama while FEMA dispensed free chain saws. No proof of property ownership or down trees required -- just a drivers license showing you lived in the County.

Now that was disgusting and a waste of tax payer dollars.

This is just another example of the process Insurance companies employ that should be controlled by the government. As usual though, our government will not step in and press these companies to do the right thing and continue to support the people who have given them their money. The Insurance companies are allowed to cut and run once again.
However I have live on the coast all my life, in different states, and if you build near the water, You are taking a risk that YOU have chosen to take. Do not expect others to pay your higher bills for you or pay for the damage that living near the coast can cause.

There are still a few insurers that will write on the beach. Call your independent agent.
I recently got a good rate with Bullard insurance agency.

You shouldn't be allowed to build or even own barrier islands anyway. They should be all natural and for everyone to enjoy!!

THIS IS A JOKE RIGHT...I guess this means that my policy with be DECREASED by 20%...plus another 30% after that because the excuse was they needed the increase to cover these homes....THIS is what happens...THOSE increases SHOULD HAVE NEVER been allowed to BEGIN WITH!...now they have taken the money AND RAN!

Anyone who builds on a barrier island knows that they are taking a chance at losing everything they have. It's not up to all State Farm insured people to pay, or any other insurance company for that matter, for their mistakes and bad judgement. I think it's way past time for all insurance companies to stop coverage on land and homes that belong to mother nature - - - she will take it back one day.

You say,
"I think it's way past time for all insurance companies to stop coverage on land and homes that belong to mother nature - - - she will take it back one day."
Well sister, I don't know where you live, but I haven't found a home yet that doesn't belong to "mother nature" as you call it. You may want to recall hurricane Hugo that ravaged Charlotte and Linville Ridge (300 miles away) and hurricane Floyd that flooded Wilson, Rocky Mount, Greenville and Washington (150 miles away). Don't forget about hurricane Fran that tore a great hole in the back side of Raleigh/Durham (100 miles away).
I live on a barrier island and pay dearly for my insurance. I also paid dearly for special construction to include a 14 foot level of stilts, hurricane shutters and 200 mph siding. If you live anywhere close and don't have these ammenties, then suck it up tight when the next blow knocks at your door!
Any place even close and...NOT so close is taking a chance with mother nature. THAT is what insurance is all about...CHANCE...PROBABILITY and that is what the consumer pays so dearly for. Not for them to just walk off with our money.

Your state of mentality never ceases to amaze me.

Amen, sister! NC has been blesses during the last several years with no major hurricanes along the coast. Why should coastal residents have to pay for the damages caused inland by hurricanes? This thing works both ways.

the JOKE is on you though...your STILL going to pay for it...but they just aren't covering them anymore...

For all of you cheering the decision by State Farm not to insure coastal properties - you better remember just how much money NC takes in as a result of coastal tourism. Other insurance companies are most likely to follow SF. You say you don't want to help fund the coastal properties damages from a hurricane. When those tourism dollars disappear because there are no rentals available, your taxes will increase to make up the shortfall in the state budget. Not to mention, you will be unable to rent that cottage at Wrightsville Beach, it isn't there anymore because the last hurricane destroyed it and the owners had no insuranace.

But at least we will have our public beaches back, minus the million dollar homes and manicured lawns.

Yes, you will have your public beaches back (actually, you have them now, as required by law) but at what cost? There is no shortage of public beaches in NC as all beaches are public and there is plenty of public access (required by law).

Except for Figure 8 Island. Private island with no public access.

Figure Eight is a private island with restricted access by road to owners, guests and renters. All beaches from the brine to the mean high tide line are public. Access by boat cannot be and is not restricted. The north and south ends of Figure Eight Island are very popular spots for gatherings, BBQ's, flotillas and the such. hundreds if not thousands of people frequent these areas every weekend as weather allows.

Figure 8 Island has a public beach. It is just like any other beach in NC.,from the high water mark to the water is public property. Although access is limited you can reach it by boat.

Maybe you should try Allstate. They will still insure property on the barrier islands as long as it is over 1000 ft from the ocean. They may have support requirements like have auto and home together, but they are still writing coastal property.

It will only be impacting barrier islands, Bald Head Island, Oak island ect. which next to no insurance company currently is writing on. State Farm is not the first, and certainly wont be the last. You may be able to get insurance with some companies that can write, requiring auto and home together, and will pay a rediculous rate for it.