Allstate and SC Farm Bureau insurance companies dropping some S.C. homeowners

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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.

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paulwheeler 07/13/12 - 09:46 pm
Some policies? Reports from

Some policies? Reports from around Charleston say as many as 10,000 policies dropped, regardless of payment and claim history. This is problem has been ongoing in South Carolina for years, these two companies were just the latest to show up on the media radar.

avidreader 07/14/12 - 09:24 am

If one buys into the massive advertising campaign that Allstate splatters all over the T.V. screen, then one would think that the "good hands" insurance company would never turn its back on a neighbor.

Such rubbish! I can see beach homes and flood-district homes being too risky to insure, but ordinary, middle-class homes under $220K and more than 10 years old? I guess with Allstate, a homeowner really isn't in good hands.

TheBigBonk 07/14/12 - 10:21 am
Why not institute

Why not institute Obama-homeowner-care? Have congress pass a law preventing insurers from dropping homeowners.

wsm141 07/14/12 - 06:18 pm
Not to worry!!!

Barack H Obama will save the day with the stroke of his Executive Order pen and tell congress to pass legislation forcing us to purchase alternate insurance to cover the loss of the current insurance. Then we will have to buy our auto, life and health from the same alternate company.

"This" is exactly what America asked for! They voted in a person totally unqualified in every aspect to be President. He had a mere 16 months as a Senator and never performed any service for the country ie "Military". Granted military should not be the only pre-requisite however it does show a willigness to put everything on the line for the country! Obama is a charlatain and snake oil salesman! And before you ask what this has to do with this story only everything. What next is the American people going to be forced to buy unwanted or unneeded in the future with no benefit. We had social security shoved down our throats, Medicare is forced upon us, now health insurance. If Washington, Jefferson, Adams, Franklin and all of the rest of the founding fathers were here today Washington, DC would be a war zone!

HighSociety 07/14/12 - 10:10 pm
Wsm141, well said!

Wsm141, well said!

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