BOURNE, Mass. -- Vermont Mutual Group will stop renewing thousands of home insurance policies on Cape Cod this spring, the company announced Wednesday.

NewsCenter 5's Jack Harper reported that the company said it would stop renewing about 5,000 policies beginning on April 1.

"Well, it stinks for the homeowner, actually. I mean, it puts us in a tough position. I understand the issue of the insurers, but it leaves a lot of people in tough positions," homeowner Peter Goldberg said.

Vermont Mutual Group is not the first insurance company to decide to stop coverage for Cape Cod homeowners. Last month, Hingham Mutual Group and Quincy Mutual Fire Insurance Co. decided to drop some of their Cape policies.

Hurricane Katrina and other natural disasters put some insurance companies on edge. Some companies are looking more closely at the Cape through hurricane modeling companies.

"They have become very, very sophisticated, and over the last few years, have increased their projected losses, most particularly in Cape Cod," Massachusetts Fair Plan spokesman Robert Tommasino said.

A Barnstable homeowner, who chose to remain anonymous, was told that he was losing his insurance because of his home's proximity to the water. The house sits a few miles from Cape Cod Bay.

Realtor Cheryl Tormey's home overlooks Cape Cod Canal, but the insurance companies called the area a flood plain.

"It's very, very hard. Primary homes are bad enough, but secondary homes are really a problem. A lot of people who are coming down here for vacation or investments find it very difficult to get insurance on those properties, and it's very expensive," Tormey said.