Dover – Insurance Commissioner Matt Denn Wednesday issued a bulletin to property insurance companies, the result of notice by Westfield Insurance Company of Ohio that it will not renew 850 homeowner and commercial property insurance policies in coastal Sussex County. 

In the bulletin, Denn directed that homeowners and businesses whose policies are not being renewed be informed about the importance of having insurance and of the existence of the Delaware FAIR Plan, which will provide homeowners and commercial property insurance to anyone who cannot obtain a policy from a private insurer.

Westfield Insurance has begun notifying its homeowner and commercial property policy holders within two miles of the coast in Sussex County that their policies with Westfield will not be renewed once they expire. According to the company, which sells policies under the names Westfield Insurance, Ohio Farmers Insurance and Old Guard Insurance, it has not sold any new property policies in the area since 2002. 

Westfield’s actions are part of a trend throughout the east coast of insurance companies canceling or not renewing property policies in areas of the country considered at risk for tropical storms or hurricanes.

“First, I am disappointed in Westfield’s decision, but my office and I will do anything we can to help the affected people and businesses in Sussex County obtain new coverage in the short term,” Commissioner Denn said. “Unfortunately, it is a business decision on Westfield’s part and there is no law prohibiting Westfield from taking this action.”

“Affected homeowners and businesses should know that there are a number of insurance companies that have told me they are still writing new policies in coastal Sussex, so check with an agent or contact a number of companies to see if you can obtain new coverage,” Commissioner Denn said. “I am, however, directing companies to make sure that affected homeowners and businesses know that a property policy can almost always be obtained from the Delaware FAIR Plan if they cannot get coverage from any insurance company. The FAIR Plan should be a last resort for obtaining property insurance, but it’s one people should be aware of.”

FAIR Plan policies can be obtained through an insurance agent or directly from the plan. Information about the Delaware FAIR Plan can be found online at www.defairplan.com or by calling (800) 462-4972.

Commissioner Denn said Wednesday that he intends to meet with the consortium of insurance companies that make up the FAIR Plan as well as the plan’s administrators to determine if any changes need to be made in Plan to accommodate Westfield’s non-renewals or those of other companies in the future.

“The FAIR Plan is designed as a safety net and I want to make sure it will be there for Delawareans who need it if the insurance industry continues to terminate policies on the Delaware coast,” Commissioner Denn said.

Click here to see a copy of Commissioner Denn’s bulletin.