Mississippi Homeowners Insurance Guide

Your home is probably your largest and most important investment, which is why protecting that investment is so important.

Homeowners insurance can offer this protection.

Homeowners Insurance: The Basics

Homeowners insurance provides financial protection if a disaster should strike.

Standard homeowners insurance covers structural damage to the home and any damage to personal property that results from a variety of events, including fire; lightening; windstorm, including hurricanes and tornadoes; hail; explosion; riot or civil commotion; smoke; vandalism; falling objects; weight of ice, snow or sleet; and freezing of plumbing, heating, air conditioning or other household systems. Homeowners insurance also covers personal liability by providing financial protection if you or a family member causes bodily injury or property damage to a third party.

It is important to note that homeowners insurance does not cover damages or losses that result from neglect, intentional loss, earth movement, general power failure or acts of war.

The amount of coverage offered by homeowners insurance falls into one of three categories:

• Actual Cash Value: The cost to replace your home and/or possessions after accounting for depreciation.
• Replacement Cost: The cost to replace your home and or possessions without accounting for any depreciation.
• Guaranteed Replacement Cost: The cost to rebuild your home to its exact condition before the disaster occurred.

The Mississippi Insurance Department recommends that homeowners purchase enough insurance to cover at least 80 percent of the replacement cost of their home and notes that this amount often can equal more than what the homeowner originally paid for the house after accounting for appreciation of the property.

Homeowners Insurance: Purchasing a Policy

When shopping for a homeowners insurance policy, you should first secure multiple policy quotes from several insurance providers in order to find the right insurance policy for you and your family.

To ensure that you receive accurate homeowners insurance quotes, you should be prepared to provide the following information:

• a description of your home;
• the distance from your home to the nearest fire department and fire hydrant;
• your home's square footage;
• whether you have any security devices installed in your home;
• a photograph of your home; and
• and the coverage limits you wish to purchase.

What about Flood Insurance

Residents of Mississippi know all too well the dangers floods can present, which is why it is important for homeowners in Mississippi to augment their homeowners insurance with flood insurance.

Almost the entire state of Mississippi is susceptible to flooding related to the annual hurricane season. In fact, between 1998 and 2007, Mississippi experienced seven flood-related federally declared disasters, including Hurricane Katrina in 2005, the largest flooding disaster in U.S. history.

Because of the potential severity and frequency of flooding, standard homeowners insurance policies do not cover this particular disaster, which is why the federal government established the National Flood Insurance Program.

For more information on the National Flood Insurance Program, you can visit the program's official web site, FloodSmart.gov.

Insurance Assistance for Mississippi Residents

Mississippi residents in need of assistance with insurance matters are able to contact the Mississippi Insurance Department for guidance.

Those requesting assistance can call the Mississippi Insurance Department's Consumer Help Line at 800-359-2453.