Allstate Insurance Co. and South Carolina Farm Bureau Insurance Co. are dropping some of their customers’ homeowner policies.
Some Allstate customers in South Carolina will not be asked to renew their homeowner insurance policy in the next few months, but Georgia customers will not be affected by the changes, said Nancy Lemke, corporate relations manager for Allstate.
“Allstate’s priority is to make sure we’re able to protect all of our customers in the event they suffer a covered loss. To help ensure we are able to do that now and in the future, we must responsibly manage our risk,” Lemke said.
Starting with policies that renew on Oct. 9, Allstate will not offer the option to renew homeowner policies in South Carolina on homes insured for less than $220,000, that are more than 10 years old and lack a motor vehicle insurance policy with Allstate that was effective before March 11.
“More than 90 percent of our policyholders are not impacted by these actions,” Lemke said.
Allstate agents may be able to help these customers gain alternate coverage from another company, she said.
Allstate is not alone. Over the next 12 months, about 3,000 South Carolina Farm Bureau Insurance homeowner policyholders in Pee Dee and coastal counties will receive a non-renewal notice.
Customers in the North Augusta and Aiken areas will not be affected, said Susan Merrill, the director of marketing for South Carolina Farm Bureau Mutual Insurance Co.
There are many reasons for the changes, including several years of back-to-back storm losses, higher reinsurance costs and poor investment performance because of record-low interest rates.
Last year, the company paid more than $36 million in storm losses, the worst year since Hurricane Hugo in 1989, she said.