Nationwide Exits North Carolina Mobile, Renters, Condo, Dwelling Markets

Citing concerns over the potential for property losses due to storms, Nationwide Insurance is exiting the mobile home insurance policy market in North Carolina, phasing out existing mobile home policies from Oct. 3, 2009 through Oct. 2, 2010 and halting the writing of any new mobile home policies.

In addition, Nationwide is discontinuing writing new renters, condo and dwelling fire policies in the state effective Aug. 31, 2009. This does not impact existing renters, condo and dwelling fire business.

The mobile home maket withdrawal does not affect existing mobile homes that are covered under a traditional homeowner policy.

The company said it is working with local agents to help approximately 15,000 affected mobile home customers find alternative coverage options.

The company said the actions are part of its ongoing efforts to manage its property risk exposure in the state.

“The ongoing exposure to windstorm, tornado, ice storms and the threat of hurricane activity are very real factors we have to consider so we can continue to be here for our customers for the long-term,” said Lee Morton, regional vice president for Nationwide in North Carolina.

Customers will be notified by mail approximately 90 days before their policy expires. They should also receive a formal notice of non-renewal by mail approximately 60 days prior to their policy’s non-renewal date. Coverage remains in effect until the non-renewal date.

The state has allowed some property insurance rate increases but insurers remain concerned about the ability of the state’s market of last resort, the Beach Plan, to withstand a major storm without later levying huge assessments on insurance companies.

The state has been considering proposals to shore up the Beach Plan and cap insurers’ liability.

Last year, Encompass Insurance left the homeowners market.