Insurer bails on North Carolina

Farmers Insurance is pulling out of North Carolina and dropping about 40,000 customers when their homeowners policies run out.

The company is concerned that it would be overexposed to financial risk if a hurricane were to cause major property damage in the state, spokesman Jerry Davies said.

With the first policies set to expire Nov. 1, some Farmers customers have less than four months to find new homeowner coverage. Coastal residents who can't find coverage may have to resort to the state insurance pool, known as the Beach Plan, which typically costs about 20 percent more than private coverage.

Farmers Insurance Group, based in Los Angeles, notified insurance agents and state insurance regulators last week that it will stop writing new policies Sept. 15.

Farmers insures about 200 homes in coastal areas, Davies said. But it is pulling out of the state entirely because the state Department of Insurance requires all insurers -- even those who don't insure coastal properties -- to participate in the Beach Plan and cover the state pool's losses.

That's not tenable, Davies said.

-- Staff writer John Murawski

In 2005, Reta Johnson and her parents started the Internet business Southern Things. Creating and selling dry mixes for Southern-style biscuits, pancakes and cobblers, the company found a niche and soon struck deals with other Southern food companies to sell their wares online.

Johnson and her family decided to open a retail shop when they outgrew their small home outfit.

The store is in North Raleigh's Newton Square at 240 Newton Road. It sells Southern Things' line of food items, named Julia's Pantry. It also sells other Southern-made products, including local favorites such as Bone Suckin' Sauce and Peanut Roaster peanuts.

-- Staff writer Sue Stock