More slated to get non-renewal notices

State Farm policyholders on the barrier islands of North Carolina are not the only ones who will be getting non-renewal notices. State Farm and Nationwide Insurance are eliminating coverage on some mobile homes.

State Farm will no longer provide coverage on certain mobile homes in North Carolina beginning May 1, according to Russ Dubinsky, spokesman for State Farm Insurance Company.

“We are making some modifications to some of the mobile homes we are writing because flood insurance is included in mobile home policies — it’s a covered peril in the state with a mobile home,” he said.

Dubinsky said coverage for mobile homes in areas identified as exposed to flooding as established by N.C. storm surge maps will be withdrawn.

This move will affect approximately 400 policyholders in North Carolina, he said.

The Daily News reported Thursday that State Farm will begin to drop homeowner policies on all barrier islands in the state. Its decision was made to preserve its financial stability, Dubinsky said.

Non-renewal notices will begin to go out to barrier island policyholders March 1, depending on renewal dates, and non-renewals will begin on May 1, depending on policy term. Dubinsky said State Farm will follow suite with its mobile home policyholders.

Nationwide Insurance announced its actions to “manage property risk exposure in the state on behalf of its policyholders” in June and stopped writing new mobile home policies in the state on Aug. 31.

“We began phasing out existing policies through the non-renewal process from Oct. 3, 2009 through Oct. 2, 2010,” said Elizabeth Stelzer, Nationwide’s communication consultant. “This action impacted approximately 15,000 mobile home insurance policies across the state. It does not affect manufactured or modular homes covered under a traditional homeowner policy.”

Impacted customers will be notified by mail 90 days before their policy expires, according to Nationwide’s press release. They will also receive a formal notice of non-renewal by mail approximately 60 days prior to their policy’s nonrenewal date.

Michele Wheeler, the owner of SFI Group, Inc. in Sneads Ferry, said many major insurance companies have pulled back over the years and no longer cover mobile homes because they include flood coverage in North Carolina. She pointed out that mobile home coverage is also more expensive than coverage on a site-built home in North Carolina.

“I’m already getting calls and inquiries from some folks who have Nationwide, and we have access to companies and are writing policies on a daily basis,” she said. “There are several good reputable companies out there.”

Wheeler advised those in need of insurance to search within their community for an independent agent.

“Find someone you trust to find you the best choice for you,” she said.

William Ennett owns The Eagles Nest in Sneads Ferry and 28 mobile homes he rents out.

He said he insures all the mobile homes himself because premiums on mobile homes have been too expensive for years.

“I quit using insurance, I have been putting the money away I would have spent on insurance on all my trailers — (I believe) that will more than cover any losses I may have,” he said. “I’ve been very lucky so far … I have never had a loss."