Are you adequately protecting one of your greatest assets—your home? Choose the right home insurance policy for your needs with Obrella, an online platform that allows you to connect with Mississippi home insurance agents quickly and easily. We’ll help you review all your options from several providers, answer any questions you have, and can even bind your policy—all over the phone.
Mississippi Home Insurance Costs
Although the median value of homes in Mississippi is considerably less than what it is nationally, the state’s average home insurance premium is more. In fact, at $1,341 per year, Mississippi homeowners pay $307 more on an annual basis than the typical U.S. homeowner. Those premiums rank Mississippi as the fifth most expensive state for homeowners insurance.
- Median Home Value: 121,100
- Household Income: 35,521
- Percent of Income on Home Ownership: 30.30%
The median value of a house in Mississippi is $99,900, which equals about 45% less than the national norm of $176,700. But, median household incomes are also less in Mississippi than they are across the nation. Household income in the Magnolia State is $37,963, whereas nationally it’s $52,250. That means Mississippi residents spend 30.3% of their household income on housing related expenses. To put that into perspective, housing costs account for 31.6% of the average Americans’ income. Reasonable housing expense means a greater percentage of homes are owner occupied in Mississippi than they are nationally. At 67.2%, the state ranks 15th for the rate of owner occupancy.
Compared to the rest of the country, home ownership in Mississippi is less costly, but every homeowner is looking for a way to lower expenses, no matter where they live. Call 855-462-2213 to ask an insurance expert to run a home insurance comparison.
How Are Mississippi Home Insurance Premiums Determined?
An insurance company looks at a variety of components to determine the cost of your home insurance premium. They start with information about your home and your area, including local building costs, crime rates, the size of your home, and the year it was built. If you live in an area that has a history of natural disasters like earthquakes, floods, or tornadoes, this will impact your rates as well. Even things like your credit score and whether or not you have a swimming pool or a guest house on your property may affect the cost of your insurance premiums.
What can be deduced from these details? Each of these factors contributes to the amount of risk the insurance company will take on when issuing you a homeowners insurance policy. The higher the risk, the higher your premium. You do have some control over these risks, however. Making your home more secure is a good start. Installing a complete home security system, for example, means your home is less likely to be burglarized, lowering the chance that your insurance company will have to replace stolen items. Even installing motion-sensitive lights and surveillance cameras can lower your risk—and therefore your premium.
About Homeowners Insurance in Mississippi
Most Mississippi home insurance companies offer a range of coverage options; some of which are defined below:
- HO-1: Limited Coverage
- No longer available in most states, this basic policy offers coverage against the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption.
- HO-2: Basic Policy
- If any of the 16 classified disasters causes damage to your home, an HO-2 policy will give you basic protection.
- HO-3: Standard, most popular
- This policy is the most popular due to its comprehensive coverage and relatively few exceptions.
- HO-8: Older Home
- This policy guards against declining home values by paying back homeowners for damage on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
What Will Standard Mississippi Homeowners Insurance Cover?
If you don’t know the details of your insurance coverage, you could be more at risk than you think. Home insurance coverage will typically only reimburse you if the damage to your home or the personal injury of another on your property is the result of a situation explicitly covered in your policy’s terms. So, if an earthquake caused part of your home to collapse and you didn’t have earthquake coverage listed on your policy, you would have to pay for repairs on your own. Want to know more? Consider the following list of common home insurance coverages:
- Coverage A – Dwelling
- Coverage A deals with damage to the home itself, any structures attached to the home, and any of the home’s plumbing, heating, wiring, or permanent air conditioning systems.
- Coverage B – Other Structures
- Other Structures coverage insures any structures that are not connected to the house, such as tool sheds, guest homes, free-standing garages, and fences.
- Coverage C – Personal Property
- In the event of damage or loss of personal possessions, Personal Property coverage will compensate the homeowner for the value of the item—be it clothing, furniture, electronics, or jewelry. Personal Property coverage also extends to personal possessions that are damaged or lost outside the home, such as items in a storage unit.
- Coverage D – Loss of Use
- If home repairs prevent you from inhabiting your house, Loss of Use coverage will cover your living expenses for the duration of the repair process.
- Coverage E – Personal Liability
- In the event of a lawsuit in which the homeowner is deemed accountable for another person’s injuries or sustained damages, Personal Liability will cover the homeowner’s monetary losses.
- Coverage F – Medical Payments to Others
- Covers medical costs for anyone hurt on a homeowner’s property or by the homeowner’s pet.
Mississippi Insurance Resources
Mississippi Insurance Department:Offers a wealth of information about homeowners insurance in Mississippi. From tips on how to lower your home insurance premium, to how to know if you have enough coverage, the Department is an excellent resource. It’s also the place to turn if you want to research an insurance company or file a complaint. Most services are available online.
Overwhelmed by your home insurance coverage choices? You can make the selection process a lot easier by taking advantage of Obrella! It’s easy to find the perfect coverage for your needs with a quick phone call to a licensed insurance agent. Not only will you have an opportunity to get all of your home insurance questions answered, but insurance professionals make it their mission to understand your needs and help you discover the best policy options for you.
Give an agent a call today at 855-462-2213 to discuss your home insurance policy options.