Premiums for property insurance in Mississippi have been rising steadily after payouts from a number of natural disasters. The rise in premiums across Mississippi demonstrates the high cost of multiple years of losses. This is forcing the property insurance industry to charge more for policies in a state where there is a higher rate of catastrophic damage from hurricanes, hail, tornadoes, ice and floods.
As homeowners grumble with the rising cost of property insurance in Mississippi, many are also grappling with the need to buy flood insurance they never previously had to purchase. Specifically, the recent re-drafting of flood zone maps by the federal government has put many homes previously deemed safe from flooding, squarely inside newly defined flood zones.
Consumer groups recommend that homeowners and business owners shop annually for the best prices and the best coverage. They also reinforce the need to work with an insurance agent who will carefully review the policy and explain the coverage.
Call The Nowell Agency Inc. at 601.992.4444, or request an online quote for property insurance in Mississippi.
Coastal Homeowners Pay More for Property Insurance
Across the nation, the premiums for homeowners insurance rose 36 percent between 2003 and 2010 – almost double the rate of inflation. Of the 15 states that endured the highest increases, nearly all of them border the Gulf or the Atlantic where property insurance rates rose by at least 44 percent.
Insurance premium rates for the federal National Flood Insurance Program, which many coastal homeowners must purchase, are also set to increase later this year. The typical homeowner’s policy covers wind damage but not flood damage. With the housing market stuck in a slow revival, some real estate agents are declaring warning signs that coastal housing may become too expensive – a fact that will drive the market value for coastal homes downward. The reason? People don’t like buying a home that comes with a hefty insurance bill. Plus, some insurers have begun applying 10-12 percent increases in the value of coastal homes because they cost more to rebuild based in part on new housing codes.
Although the rate increases have leveled off in recent years, many homeowners and business owners have found less expensive policies and
changed their deductibles to give them a better rate. Overall, coastal homeowners pay more for property insurance by as much as $4 billion over the premiums paid by inland residents.
Consult your local team of insurance experts at The Nowell Agency Inc. and request a property insurance quote online. Or call us at 601.992.4444 to discuss your insurance needs and the options available to you when choosing property insurance in Jackson, Mississippi.