MYRTLE BEACH -- Allstate is not renewing its insurance coverage of mobile homes in eight coastal South Carolina counties including Horry County and Georgetown County.
Allstate says it's dropping coverage in mobile home areas to ensure it will have enough capital to protect millions of other homes across the nation. Covering mobile homes along the coast isn't worth the risk to Allstate any more since mobile homes are often the most damaged homes during major storms, according to John Heid, an Allstate spokesperson.
“Sometimes we have to make difficult decisions. Obviously this was one of those difficult decisions and while difficult, it was carefully considered and we believe it is the right action to allow us to remain strong in South Carolina,” said Heid.
Heid says Allstate began dropping insurance coverage for mobile homeowners along coastal South Carolina in November 2009.
Heid says, in total, around 2,400 homeowners have been affected so far, including Paul Lechner who has been living in a mobile home in the Riverbanks mobile home park in Socastee for 25 years. Allstate provided coverage for the entire time, but is no longer renewing Lechner's coverage.
“I wasn't very happy after being with them so long. I've only had very small claims with them. Only a couple. (Hurricane) Hugo didn't do that much damage,” said Lechner.
Allstate is working with American Home Provider to allow them to pick up the policies Allstate won't renew, according to Heid.
Heid says Allstate is helping Horry County mobile homeowners switch their policies, but some of the people News 13 spoke to are upset because in many cases the new rates are higher than the old rates they paid with Allstate.
“Mine did go up, over 200 hundred dollars (a year) yep…Either you insure it or you don't,” said Lechner.
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