James Island resident Anne Peterson Hutto said her family has been paying Nationwide for homeowners’ insurance for 15 years and never filed a claim, so she was upset to learn that the insurer plans to drop her hurricane coverage.

“I got an email, I think on Wednesday afternoon, telling me that when I’m renewed in February, they won’t be renewing my wind and hail,” said Hutto, an attorney and former state House member. “I sent them one back asking if this is Nationwide’s way of rewarding our loyalty.”

About 750 Nationwide Insurance customers in the greater Charleston area will be getting the same bad news as their policies come up for annual renewal.

The insurer’s decision to reduce its potential exposure to hurricane damage claims could mean that Hutto and the others will have to turn to the more expensive state “wind pool” coverage that provides last-resort hurricane insurance in South Carolina.

All the Nationwide customers who will lose wind and hail coverage are in the area covered by the wind pool.

Nationwide spokesman Mike Switzer said the company still will insure those homes against fire and other perils.

“We’re renewing them with the exception of wind and hail coverage,” he said. “Their Nationwide agent will help them transition their coverage to the wind and hail association.”

All the Nationwide customers who will lose wind and hail coverage are in the area covered by the wind pool.

Nationwide spokesman Mike Switzer said the company still will insure those homes against fire and other perils.

“We’re renewing them with the exception of wind and hail coverage,” he said. “Their Nationwide agent will help them transition their coverage to the wind and hail association.”

The cost of wind-pool coverage varies from property to property, but is generally more expensive than a traditional policy, and the state Insurance Department this year approved wind pool rate increases that will average 9.8 percent.

Those rate increases started to kick in after Sept. 1 as policies came up for annual renewals.

Switzer said Nationwide will continue to provide wind and hail coverage to about 4,800 customers in the Charleston area.

“We’re not backing away from the area,” he said. “This move helps us balance our risk profile.”

Russ Dubisky, executive director of the industry-funded S.C. Insurance News Service, said there hasn’t been a recent instance of an insurer dropping hurricane coverage for a large number of South Carolina homeowners, but it isn’t that unusual in the industry.

“Companies are constantly trying to adjust their book of business, to spread the risk evenly,” he said. “If they see lots of wind coverage in hurricane-prone states, they might decide to reduce that.”

The last big change to wind and hail coverage in the state came in 2006 and 2007 when large property insurers including State Farm and Allstate cut some 20,000 coastal wind/hail policies.

In response, South Carolina expanded the area covered by the wind pool, and wind-pool premiums were increased by 35 percent.

MOBILE-HOME POLICIES DROPPED

While about 750 Charleston-area homeowners face the loss of their hurricane coverage from Nationwide, 144 mobile-home owners will see their insurance policies dropped entirely by the company.

The 144 mobile-home policies that will not be renewed are the among the last that Nationwide has in the Charleston area. Insurance policy changes typically happen when annual policies come due for renewal.

Insurance companies are allowed to nonrenew policies, but must give notice in writing 60 days in advance, or 90 days in advance if the nonrenewal takes effect during hurricane season, June 1 to Oct. 31.

Reach David Slade at 937-5552.