An insurance company linked to Allstate says it won’t write new homeowner and dwelling fire policies in North Carolina over concerns about a state-sanctioned program for coastal insurance.
Encompass Insurance told independent agents who offer the product last week that additional policies wouldn’t be prudent given the growth of the so-called Beach Plan.
The Beach Plan insures properties in 18 counties. It could require insurance companies to pay hundreds of millions of dollars should a major hurricane hit North Carolina.
Encompass is a division of Allstate Insurance and insures about 5,600 properties in the state. Current customers will remain covered. Encompass will keep writing new condo and renter’s insurance policies. The change doesn’t apply to Allstate policies.
In August, Farmers Insurance Group also notified its North Carolina agents that it would pull out of the homeowners’ market across the state before year’s end.
A state legislative panel is examining whether to change the Beach Plan.
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