NC - Homeowners outraged after major insurance firm refuses to renew tens of thousands of policies leaving costs spiking
Thousands of North Carolina coastal homeowners have learned that their home insurance will not be renewed
The 10,525 policies were affected based on a hurricane hazard assessment tool, according to the state’s Department of Insurance.
Another 4,744 policies that weren’t renewed are being referred to the North Carolina Insurance Underwriting Association’s Beach Plan.
The plan ensures that property owners in coastal areas can still receive coverage.
Nationwide released a statement that said “a measured view was taken to assess and rebalance its portfolio based on risk.”
“Consideration was given to climate severity, weather-related losses, and the reinsurance market.
Consequently, underwriting renewal guidelines were refined, and specific actions were necessary for a small percentage of the company’s business,” the company said.
Nationwide is required to reach out to policyholders and make them aware of non-renewal at least 30 days before the renewal effective date.
The North Carolina DOI said insurance agents knew about the non-renewals “early on.”
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However, the department said that if a policyholder wasn’t contacted by their agent, they could reach out to receive coverage elsewhere.
Residents are now scrambling to find an affordable policy.
“It may be a little harder to find coverage now,” Willo Kelly, CEO of the Outer Banks Association of Realtors told a local NBC affiliate.
“All of a sudden, you know they are going to drop you and you have to find coverage elsewhere and it’s much more expensive.”
However, North Carolina wasn’t the only state that had the rug pulled from under them.
“There was a lot of losses in Florida from Hurricane Ian, so we, of course, are being affected,” said Kelly.
“They are pulling in where they see the highest risk.”
Scott Weatherly, co-woner of Weatherly Insurance Agency, told The Virginian Pilot that the non-renewals caught him and 320 of his clients “off guard.”
“We weren’t expecting it, but we’re working through it,” he said.
“We’ve been able to find a home for everybody.”
Still, many of his clients were long-term policyholders and told him that they weren’t happy about the change.
