Allstate halts coverage for Horry County mobile homes [The Sun News, Myrtle Beach, S.C.]

Feb. 20--Allstate Insurance is no longer insuring mobile homes along the South Carolina coast, and the company will notify customers as their policies come up for renewal that their homeowner's insurance will not be extended.

"We made this decision in order to make sure we have the capital in order to be strong in all the communities we serve," said Shane Robinson, a spokesman for Allstate.

The decision to phase out mobile home insurance in Beaufort, Berkeley, Charleston, Colleton, Dorchester, Georgetown, Horry and Jasper counties was made in October and will affect about 2,400 properties, Robinson said.

Mobile homes historically tend to suffer greater damage in a storm, costing the company more money on average and presenting a greater risk, he said.

"It was a tough decision. It was a decision we felt was necessary to responsibly manage our risk," Robinson said.

The company has no plans to cut back on any other insurance policies right now, he said, but added that the company is always evaluating its risk.

Howard Rockey, a 70-year-old Conway resident, learned Thursday that his policy would not be renewed. He lives on a fixed income and said he considered himself a loyal Allstate customer until he received the insurance company's letter.

"I'm kind of caught between a rock and a hard place," he said. "I think it's stupid, you know, I'm 70 years old, I felt secure and everything with retirement."

If the insurance costs on the double-wide mobile home he shares with his wife were to skyrocket, he doesn't know how they would pay.

"I feel kind of left out in the cold," Rockey said. "They've taken money from me over the years and I've never filed a claim with them."

Allstate says it recognizes it could be difficult for homeowners to lose their policies, so the company is working with the American Modern Insurance Group, which likely will offer coverage to many of Allstate's former customers, Robinson said.

Insurance companies are constantly reassessing risks and making sure that they could cover any claims, said Ann Roberson, a spokeswoman for the S.C. Department of Insurance.

"I think the one thing we're learning is, and I think this is true for all states with coastal exposure, that that is a serious risk and [insurance companies] are reassessing their risk," Roberson said.

Roberson said the state doesn't mandate that insurance companies cover people, but it has been working to encourage them to offer coverage, especially along the coast.

In 2007, the state legislature passed legislation that included incentives for insurers and policy owners to try to improve availability and affordability of coverage, she said. She encourages homeowners to use the state's resources to research other insurance companies.

"There are other companies out there that are writing [insurance]," she said. "We recommend to consumers that they shop around."

Contact ADVA SALDINGER at 626-0317.

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