NC Homeowner’s Crisis

Posted on Monday June, 2010
Filed in Uncategorized

Unfortunately, at this time, North Carolina especially Western NC, is in a “Homeowners” crisis and we have no carriers that are willing to insure any home at this point, seasonal or primarily occupied, without also insuring an Auto policy.

Farmers Insurance Company, Encompass and Donegal having completely exited, North Carolina and non-renewing all their homeowner’s policies as well as other carriers are also taking this “knee-jerk” reaction. ACE Insurance Company requires a combined minimum of premium for all of a client’s personal lines policy of $25,000 or more. Chubb Insurance Company and Fireman’s Fund will not write the seasonal/secondary homes without writing the primary home and they will not insure homes in Florida or near the coast.

The other Independent carriers that DO write in North Carolina, most especially seasonal/secondary homes, such as Travelers, Auto-Owners, Kemper, MetLife Auto and Home, have recently established a moratorium on Independent Agents, as outlined above. Allstate has recently announced they will be non-renewing approximately 35,000 mono-line homeowner’s policies in North Carolina effective May 1, 2010.

Our carriers are now requiring agents considering writing a new homeowners policy, to also write a non-property auto policy in conjunction with the new Homeowner’s policy.

At this time, unfortunately, I am not in the position to quote seasonal/secondary homes with my best A, A+ or A++ rated carriers, UNLESS you allow me to quote a couple of your Auto’s.

We do have the availability to write homeowners coverage available through our Excess and Surplus lines carriers, however, their coverage may be abbreviated compared to our standard carriers policy forms, they may not be licensed in North Carolina and will not have an A.M. Best rating of A, A+ OR A++.

We do HAVE a license to quote and write insurance in the following states, so you would not have to tag, title, register the vehicle in N.C. nor have a valid N.C. Drivers license. Florida, Georgia, South Carolina, Tennessee, Alabama, and Virginia.

If you are willing to give me a chance to quote your Auto in conjunction with your homeowner’s coverage, I would be more than happy, as long as the vehicles are tagged/titled in one of the states above.

I would need a copy of the current auto policy with year, make, model, serial numbers, limits/deductible and driver’s license numbers and dates of births for all drivers. Along with a copy of the current Homeowners policy declaration page showing the limes, deductible, location, etc.

Keep in mind, that these changes are not of our own doing, but are a sign of the times, the economic downturn, low returns on investments, higher valued homes having been underinsured with their losses, foreclosed home claims, and the whole multitude of outside factors contributing to where we are today.

If I can answer any questions or be at all of any assistance, please do not hesitate to contact me!

Most Respectfully,
Michael D. Babb-President