VIRGINIA BEACH, Va - Options for home insurance appear to be dwindling in Hampton Roads.
Some home insurance companies are pulling out of the Virginia Beach Oceanfront area.
One resident, Fred Drummond, said his insurance company dropped his homeowner's policy after he had been with them for 20 years.
"In June, I received a call from my agent that Nationwide would not be renewing my policy which I had for over 20 years," Drummond said. "They are not gonna renew anymore or write any more policies for the 23451 area."
He says he spent three days calling other insurance companies.
"I started calling around to all the major companies including USAA, Hartford. And no one was writing any policies for this area," Drummond said.
He said the companies are telling him he's "too close to the area for storms and storm damage."
"A lot of the companies are trying to mitigate their risk in coastal areas. That’s what’s driving a lot of decision-making. Hampton Roads has been coastal for some time," Drummond said.
News 3 spoke to insurance agents who said some of the major companies have stopped covering certain coastal areas in Virginia Beach.
Nancy Rodgers with Bunn Insurance Agency works with major insurance companies to provide home insurance policies to Hampton Roads residents.
"We have seen increased storm activity and regular claims activity," Rodgers said.
Drummond says he filed an insurance claim last year with Nationwide when remnants of hurricane Ian ripped through Virginia Beach.
"I had a claim for about $18,000. We lost the roof and siding on the house," Drummond said.
Drummond says he was able to get home insurance at a cheaper rate with a different company.
Insurance agents say insurance companies pulling out of coastal areas is a growing trend across the country. They recommend shopping around and say sometimes smaller insurance companies will cover coastal areas.
"They have to reduce their overall exposure. Some carriers are deciding to pull out of Hampton roads altogether or reduce the amount they are looking to insure on the coast," said Greg Acton, an agent with Armor Insurance Group Insurance.
