WMBFNews.com | Myrtle Beach/Florence, SC | News, Weather, SportsAllstate stops mobile home insurance along the coast

Allstate stops mobile home insurance along the coast

MYRTLE BEACH, SC (WMBF)- Allstate Insurance will stop insuring mobile homes along the South Carolina coast.

John Heid, senior communication consultant for the Southeast region of Allstate, says letters went out to affected customers a few months ago.

"They made the decision last year to begin non-renewing approximately 2,400 manufactured homes, commonly known as mobile homes policies, in the coastal areas of South Carolina," Heid said.

While the process is ongoing, Doris Gainey has yet to receive a letter. The Camden woman heads down to her camper on the beach when she can.

"Can you believe it? I stand at my kitchen sink and look at the ocean," she commented. "It's beautiful."

Gainey says this doesn't really affect her because she was planning to change insurance companies anyway: "Their price is higher than an offer I have been made, and my policy expires in March and I have full intention of changing."

Heid says one reason the company is not insuring manufactured homes anymore is because they don't hold up as well in the coastal storms.

"Claims histories show us that coastal manufactured homes suffer much greater frequency and the severity of loss than site-build homes," he said.

Gainey admits that if another big storm came through, her camper would be damaged: "If it was like Hugo it probably would be destroyed."

She says while Allstate has the right to do whatever they want, homeowners need to remember their property is their responsibility.

"If we're willing to take risk because of something we enjoy for our own pleasure, then we have to take some financial risk and say we'll be responsible for part of it too," she said.

Allstate says they have worked to create a relationship with American Modern Insurance Group, and are suggesting customers try that company, saying American Modern Insurance Group "may be able to place many policies with that carrier."

"We must responsively manage our risk, and sometimes we have to make difficult decisions," Heid said. "Obviously this is one of those decisions, and while difficult, it was carefully considered and we believe it was the right action to remain strong in South Carolina."

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