OCEAN CITY, Md. -- Mobile homeowners in Montego Bay are realizing they no longer qualify for homeowners insurance. It has them worried about the present and future of their homes, and officials tell us they aren't alone.
"The insurance underwriters are refusing to provide coverage for mobile homes not just in Montego Bay, but pretty much any mobile home park within Ocean City that are over a certain age," said City Manager Terry McGean.
We are told this problem impacts manufactured homes that are more than 20 years old. In Montego Bay, roughly 25%-30% of homeowners fall into that category, according to Delegate Wayne Hartman(R, Wicomico and Worcester Counties).
Laurie Benner told us her parents home is right on the cusp at 19 years old, so the future could be bleak.
"Not only is it an issue for our own personal family ownership of the property and what that means if there is some type of loss, some type of flood, some type of an issue and not having insurance," said Benner. "But obviously it's an issue when we go to sell it."
Benner said she's worried this will lead to a smaller target market for sellers.
"People coming in, you know it affects the marketability, it affects the affordability and again, it's a huge problem for a lot of folks," said Benner.
A few years ago Ocean City began allowing conventional or stick-built homes to be built in Montego Bay. It gave people the green light to make additions to their property.
Hartman said that could play a role down the line, because conventional homeowners should still qualify for homeowner's insurance.
"Some of them are built over where it was a manufactured home, they've added onto the side, they've put a roof over it and really it's a stick-built home," said Hartman.
However, Hartman said part of the problem is insurance companies still see those homes as manufactured.
"If we could make some progress with the classification of some of those, I think that may be the first help we can offer," said Hartman.
Hartman said as the state looks to help they will have to walk a fine line. He said the state won't want to enact any legislation that could lead to insurance companies leaving the Maryland market all together.
