State Farm Insurance Cos. says it won't renew homeowners policies within 1,000 feet of the beach on the Mississippi Gulf Coast, an area that was devastated by Hurricane Katrina in 2005.
The company says policies in the area will not be canceled immediately, but won't be renewed.
Jonathan Freed, a company spokesman, said no more than 892 policy holders would be affected.
However, Freed said, those living between 1,000 feet and 2,500 feet of the water will not have their coverage for wind damage renewed. Officials say that could affect up to 5,000 homeowners.