Homeowners Insurance in Mississippi

Located in the southeast, Mississippi is at the epicenter of bad weather and experiences plentiful tornadoes, earthquakes, landslides, wildfires, and hurricanes. Frequent storms as these cause devastating property damage. When homeowners' houses get damaged, they file claims with home insurance providers, which can result in massive losses for insurance providers. Since 1953, Mississippi has had 72 federally declared natural disasters, and the rate of disasters per 1 million people is 24.49.

Along with damage from severe weather events, Mississippi insurers also receive claims for lightning, frozen pipes and water damage, other types of property damage (e.g., vehicle), bodily injury, and theft.

Because states don't require any homeowners insurance, you might think coverage limits don't matter. But, if you finance your house purchase, your lender will demand that you buy coverage and dictate specific coverage limits. You will have to keep those limits in place for the duration of the loan.

As of August 2024, the national average for homeowners insurance in the U.S. is $2,511. Mississippi residents pay an average of $2,624 for $200,000 of home insurance, higher than most states.

Every insurance provider in each state offers customized policies to cover residents based on the location, type of severe weather, and other perils. The available types of homeowners insurance in Mississippi include:

You might also consider a flood policy if your area experiences floods. FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. Depending on the options you choose, it can cover the building and/or your personal belongings. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

Climate change and frequent turbulent storms are creating massive problems for the home insurance industry and homeowners. As rates skyrocket, it's becoming increasingly difficult for homeowners to afford home insurance. Over the past five years, rates across the U.S. have spiked by 34%; in some places, they've even risen as high as 60%. Mississippi's home insurance rates have increased by 14.7% from 2018 to 2023.

Unfortunately, Mississippi is prone to many types of disasters, including tornadoes, earthquakes, landslides, and hurricanes. In 2020, 6% of insured homeowners filed at least one claim. Insurance providers pay out an average of $11,695 for hail or wind damage. Water damage and freezing claims cost insurers on average $11,650 per incident. From 2015 to 2019, Mississippi insurance carriers incurred losses totaling $413,557,200, and only in 2023 the state had 81 tornadoes, resulting in 24 deaths. In 2022, Mississippi had a whopping 1,980 wildfires, destroying 53,170 acres of land, earning it a spot on the list of the states with the most wildfires and acres burned.

Home insurance costs are rising steadily in states like Mississippi, where violent weather is becoming more common. Finding ways to save begins with understanding what affects home insurance rates. The most common factors in Mississippi include:

Some ways to save on homeowner insurance in Mississippi include:

• Reinforce Your Roof/Siding: Installing shatterproof windows, reinforcing your roof, or installing storm shutters could make your house more disaster-resistant and save you money on home insurance. Also, consider upgrading plumbing and electrical systems to avoid water damage or fires and reduce claims and rates.
• Bundle Insurances: Combine your home and auto insurance with the same carrier to save money on your insurance.
• Increase Your Deductible: Increase your deductible for lower rates.
• Sparingly File Claims: Do not file any claims unless absolutely necessary. The more claims you file, the higher your rates will be.
• Install Security or Safety: Install a top-notch security system to keep your house safer and lower rates. Install fire extinguishers, smoke alarms, and sprinklers to reduce your risk of fire and lower rates.
• Ask for Discounts: Ask your provider for any additional discounts you might be eligible for.
• Improve Your Credit: Improve your credit score and ask your insurer to reassess your rates.
• Shop Around for Rates: Shop around and find the lowest rates possible.

Homeowners insurance is coverage that protects your home in the event of a disaster. If, for example, your house burns down in a fire, home insurance will pay to rebuild it. Most policies also include personal property protection, liability coverage, medical payments, other structures, and loss of use coverage if you must leave the home while it is rebuilt.

Once you have determined the insurance firm you want to use and the amount of coverage you want, it's easy to apply for coverage. Visit the company's website and apply online, or call their 800 number. You can also find a local insurance agent to help you. They could make the experience even easier and help you determine the right coverage for you.

Some standard home insurance discounts offered by most firms include:

• Senior Discount: Some insurance firms offer you a discount when you reach a certain age.
• Military Discount: Military personnel and veterans can save on home insurance by requesting a military discount.
• Occupational Discount: Many carriers offer discounts to people who work in specific occupations, such as firefighters and teachers.
• Multi-policy Discount: When you bundle multiple policies with the same provider, they discount your rates.
• Claims-Free Discount: Stay claims-free for as long as possible, and you can save on home insurance.
• Non-smoker Discount: Non-smokers have a lower fire risk and earn a discount because of it.
• Loyalty Discount: When you stay with the same company for many years, you can also get a discount that sometimes increases over time.
• Paperless Discount: Go paperless for your statements; your insurer may give you a small discount.
• Autopay Discount: You pay less when you sign up for automatic payment withdrawals.
• Fire Safety Discount: Install smoke alarms, fire extinguishers, and sprinklers to earn even more money off your rates.
• Security Discount: Install a home security system to monitor for burglars, vandals, and fire, and you can save on your rates.
• New Home Discount: New homes cost less to insure, and you can take advantage of a huge discount.
• Early Quote Discount: Get quotes early, long before you need them, and your firm may offer you a discount.
• New Roof Discount: Replace your roof with a more storm-resistant one to save money on your insurance.

Common Rates Offer by Homeowners Insurance Firms

New homes cost much less (up to 40% less) to insure than older homes. They are constructed using code-compliant, fire, and wind-resistant materials and should withstand nasty weather. Therefore, insurance providers offer better rates for new homes. The average new home property owner pays about $1,400. However, your actual rate will depend on many things like your location, credit score, age, size, age, and condition of the house, etc.

Top 10 Home Insurance Firms in Mississippi and Average New Home Savings

Renovations can breathe new life into your home and make it pop, but they can also dramatically impact your home insurance rates. Some upgrades increase the value of your home, others may increase risk, and your rates will go up. Others can fortify your home, making it stronger and more resilient, reducing risk, and lowering your rates. It depends on the type of upgrade. A few renovations may do both while canceling out any effect on your rates.

Home Renovations that Increase Rates

Some home renovations that increase your rates include:

• Putting in a Pool: Your family may cheer when you install a pool, but be warned that it will increase your home insurance rates.
• Adding Square Footage: Anytime you add square footage to your home, you are adding value, making it bigger, and increasing your home insurance rates.
• Building a Tree House: The kids will spend hours of fun playing in a new tree house, but it also adds risk, and your homeowners insurance will go up as a result.

Home Renovations that Decrease Rates

Some home renovations that decrease your rates include:

• Upgrade Wiring: Old wiring can lead to a fire. Replacing your wiring is not only smart but also helps you save on your home insurance.
• Auto Water Shut-Off Devices: Install auto shut-off devices that stop water leaks and damage. Water alarms also help and could shave money off your rates.
• New Roof/Shatterproof Windows: A new roof helps your house weather storms better. Shatterproof windows, especially in Mississippi, could save you money on your insurance.

Typically, installing a new roof lowers your insurance unless you install a fancy metal roof or one with expensive construction materials. In that case, high-end, costly replacement materials may cancel out the lower risk.

Your homeowner's insurance does not pay for routine maintenance and elective renovations. Those are your responsibility. However, what is covered is if someone gets injured or steals from you during renovations.

Before beginning any updates, talk to your insurance agent. They can help you understand the impact on your coverage and rates. You may need to increase your coverage after the work is completed.

When renting an apartment, condo, or house, you need homeowners insurance to protect yourself. The most significant difference between homeowners and renters insurance is that renters have no dwelling coverage. Any dwelling damage needs to be covered by the owner. Renters insurance aims to protect your personal property, protect you against liability, pay medical payments, and pay loss of use payments.

Some covered perils for renters insurance include:

Renters insurance pays to replace furniture, clothing, bath items, small appliances, electronics, and sporting equipment if they are lost in a qualifying event.

Insurers consider three main factors when pricing renters insurance, they are as follows:

The national average for renters insurance in the U.S. is $152 a year for $15,000 of personal property coverage. Mississippi renters pay an average of $375 a year or $31 a month, which is considerably higher than in many states.

Condo owners also need homeowners insurance to protect their homes and personal property. Condo insurance, known as HO-6, is a policy that protects the condo owner's dwelling and personal property and provides liability and medical payments coverage, loss of use, and loss assessment. The dwelling coverage with condos works differently. A condo association has its own master policy, which restores each building back to its original condition (when first built) after a qualifying event. However, it does not restore the interior to its most recent condition. Most condo owners have long since upgraded the flooring, kitchens, baths, appliances, and fixtures, and condo insurance restores the interior back to normal.

Condo insurance differs from renters in that renters have no dwelling coverage, but condo insurance does. However, it is limited to "walls-in" only. Additionally, the liability portion of condo insurance only works if the person is injured inside the condo, not outside or on common grounds. The condo association's master policy would cover that.

Condo insurance covers walls-in dwelling coverage after a qualifying event like fire, windstorm, theft, or vandalism. Some things the insurance will replace are:

• Personal Possessions
• Furniture
• Appliances
• Interior Walls
• Wiring
• Plumbing
• Flooring
• Lighting Fixtures
• Countertops
• Cabinets

A typical condo owner pays about $765 a year or $64 a month for $60,000 personal property coverage and $300,000 liability with a $1,000 deductible. Mississippi residents pay more than the national average of $625 a year.

Some tips for saving on condo insurance are:

• Raise Your Deductible
• Add a Home Security System
• Eliminate Risks
• Improve Your Credit
• Ask for Discounts
• Shop Around for Rates
• Bundle Your Policies
• Review Coverage Each Year
• Avoid Small Claims
• Make Your Home Disaster-Resistant

Although by far, Mississippi is not the worst state with insurance troubles, providers lost a lot of money in 2020 and again in 2023 due to five separate billion-dollar disasters. Insurance providers must wonder whether this trend will continue and need to decide if it is safe to continue offering coverage in the state. If these weather events prevail, residents will find it increasingly more difficult to find coverage.

Mississippi is plagued with many different types of perils, including tornadoes, earthquakes, landslides, hurricanes, and wildfires. This level of danger makes Mississippi one of the more dangerous states to live in and risky for insurers. If this trend continues, insurance carriers will continue to sustain massive losses and eventually pull out of the state altogether, limit coverage, or drop risky customers.

Because the federal government does not regulate the home insurance industry, each state appoints its own department to monitor providers and rates, investigate customer complaints, and sanction guilty firms. In Mississippi, that agency is the Department of Insurance, with an address of P.O. Box 79, Jackson, MS 39205.