Waterfront property owners in Baltimore County said they want lawmakers to act now to stop insurance companies from phasing out coverage in coastal communities.
The effort comes at the heels of Allstate Corp.?s announcement last month that the insurer will not write any new policies this year on 11 coastal Maryland counties, citing increased risks of hurricanes. Residents in the county?s waterfront communities such as Millers and Carroll islands, Essex and Middle River said Allstate?s decision indicates future hikes in premiums and mortgages as well as lower property values in those areas.
Bernice Myer, president of the Millers Island Community Association Inc., said she?s “arming” herself with information for lawmakers and other community leaders along the county?s 175 waterfront miles.
“It starts with one company that doesn?t want to write new policies, then another,” Myer said. “Then they don?t want to renew policies. It?s a snowball effect, and it could be devastating to people who own valuable waterfront property.”
Most of the county?s coastal communities are still wrangling with lawsuits against the Federal Emergency Management Agency for claims of damage from Tropical Storm Isabel in 2003, she said.
At least one lawmaker in Baltimore County, District 6?s Joseph “Sonny” Minnick, has responded to her concerns. A member of the Economic Matters Committee and housing subcommittee, Minnick said he is “looking into” legislation to combat feared effects.
But insurance industry representatives said most Marylanders have nothing to worry about ? yet. Allstate is one of only two private companies pulling out of coastal communities in a state where 35 such companies operate, said Darlene Frank, a spokeswoman for the Maryland Insurance Administration.
Nationwide Mutual Insurance stopped new businesses in two ZIP codes near Ocean City several months ago. Allstate?s new policy affects residents in portions of Anne Arundel, Calvert, Dorchester, Somerset, St. Mary?s, Talbot, Wicomico, Worcester, Prince George?s and Queen Anne?s counties.
Areas in those counties flood even in heavy rain, she noted.
“I don?t think it?s time to sound the alarm quite yet,” Frank said. “We want Marylanders to be very educated.”
