MISSISSIPPI STATS
On average, Mississippians are paying $1,105 every month on homeownership costs. There are 1.3 million homes in the Magnolia State, 68% of which are occupied by owners.
- Population: 2,986,530
- Average value of homes that’s occupied by owners: $109,300
- Households: 1,103,514
- Average household income: $42,009
- High school grad or higher, percent of people age 25 years +: 83%
- Average travel time to work: 24 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Mississippi is a southern state of the U.S. with the Mississippi River to its west. With the Gulf of Mexico to its south, Mississippi has to bear the brunt of tornadoes, hurricanes, and floods arising in the Gulf of Mexico.
Three of the ten most expensive hurricanes hit this state hard. In 2004, Hurricane Ivan wreaked havoc on the United States Gulf Coast. It does not stop there. In 2005, Hurricanes Katrina and Rita swept away everything and resulted in a sudden increase in premiums.
Tornadoes are also a threat. The 2011 Smithville Tornado hit the state, which was considered as one of the most violent tornadoes and resulted in catastrophic damages and fatalities.
As natural disasters are frequent in this state, there is an increased demand for affordable home insurance. When searching for the best Mississippi homeowners insurance, you will likely consider price, coverage and reputation. However, price will definitely be a determining factor to ensure it fits within your budget. We aim to help you by helping you narrow down your search. Simply input your Zip code in our free comparison tool and get a list of insurers in your area. For more on premiums in Mississippi, keep reading the article below.
MS Premiums vs nationwide
After Hurricanes Katrina and Rita, the homeowners insurance premiums have increased and keep on rising. According to Information Insurance Institute (III), in 2016 (latest available data), the average premium rate in Mississippi was $1,525 annually (or about $127 per month), which was way more than the national average of $1,192.
You may get a different quote than the average rate in MS for the same kind of coverage depending on which part of the state you reside in. For example, coastal areas are most likely to bear severe damages from hurricanes than other regions, which means higher premiums. The amount of coverage you are getting also determines the rate.
Average Mississippi Home Insurance Premiums
| 2016 | 2015 | 2014 | |
|---|---|---|---|
| Monthly average | $127 | $126 | $121 |
| Annual average | $1,525 | $1,508 | $1,447 |
| National annual average | $1,192 | $1,173 | $1,132 |
| Rank | 6 | 6 | 5 |
The Best Home Insurance Providers In Mississippi By Market Share
It is evident that hurricanes are frequent in this state. Therefore, you have to be prepared for the damages they can cause. Having the right amount of coverage can save you from spending extra money from your pocket in your time of need.
Known home insurance providers in Mississippi are mentioned below along with the services they provide. Analyzing their ratings and support will help you figure out what you’re looking for and which company is right for you.
State Farm
State Farm is the leading insurance company in Mississippi as well as a highly rated one in the market with strong ratings from reputable agencies. It received an A++ (Superior) for its financial strength from AM Best and scored 825 out of 1000 in JD Power’s customer satisfaction survey. Its scores show it will process your claims quickly so that you don’t have to worry too much in your time of need. In 2017, this company had a 26.3 percent share in Mississippi’s home insurance market, according to III.
With the standard homeowners insurance policy from State Farm, you can get protection for damages sustained due to theft and extreme weather conditions such as storms, lightning, fire, wind, and floods.
This company allows you to keep in touch with a qualified worker who can repair damaged floorings in case of floods or other natural disasters through their Premier Service Program. State Farm’s Double Check Discount feature allows discounts to be automatically applied if you are eligible for one. This offer can further reduce your insurance premium rate by up to 40%.
Its customer service agents are available to talk 24 hours a day, 7 days a week, through the phone and website.
Allstate
Allstate has been in the market since 1931 and has been serving its clients for decades. Its online resources, varieties of discounts and extended coverage policies can make Allstate a smart option for getting homeowners insurance.
It provides coverage for theft, fires and weather conditions like hurricanes and hail. For further guidance about what its homeowners insurance policy will cover, you can call its local agent. Allstate agents can help you figure out which policy can cover all your needs and will assist you in finding discounts to save money on premiums.
Likewise, this company offers discounts for its existing and new customers such as a Welcome discount which gives 10% off on premiums, a Multi-Policy discount where you can save 25% if you get both home and automobile insurance from Allstate, and a 15% discount for installing security devices.
Allstate scored a 822 out of 1000 in the JD Power customer satisfaction survey in 2018 and was awarded an A+ (Superior) by AM Best. Allstate had a 9 percent share in MS’ home insurance market in 2017.
Southern Farm
Southern Farm has been working in Mississippi with the name of Mississippi Farm Bureau since 1947. Southern Farm is the second largest homeowners insurance provider in this state with a 16.5 percent market share.
They offers discounts like many other companies if you bundle home and auto insurance policies or if you have a claim-free history. Being a local insurance provider, this company helps you get coverage for flood as a separate policy as it knows the importance of flood coverage in Mississippi.
Their website does not offer too much information about the policies it provides, so you will have to contact an agent to discuss the rates and coverage policies further. If you are looking for quality customer service, reasonable rates and comprehensive coverage options, the Mississippi Farm Bureau can be the best option for you.
According to the rating agency AM Best, this company enjoys a financial strength rating of A+ (Superior). While it does not appear in the 2018 JD Power U.S. Home Insurance Study because it’s a small company, its tremendous share in the Mississippi homeowners insurance market shows this company’s strength.
A Final Note
We used the three leading companies in MS based on III’s data on insurers with the most written direct premiums along with the percentages they hold in the home insurance market in Mississippi in 2017. Now that you know know some companies in Mississippi for homeowners insurance, you have to ensure that the coverage you get will protect you from the possible catastrophic events in your area/state. Most companies do not offer flood insurance, but it is highly recommended to get one. You should consider the Mississippi Farm Bureau in this case as it provides flood insurance as a separate policy.
Flood insurance is not the only policy which you should consider because wind coverage is also significant in the areas that are prone to get hit by hurricanes or tornadoes.
Mississippi Home Insurance Companies: Market Share and Summary of Ratings
| Rank | Insurer | Market Share % | AM Best | S&P | JD Power |
|---|---|---|---|---|---|
| 1 | State Farm | 26.3 | A++ | AA | 3 |
| 2 | Southern Farm | 16.5 | A+ | NR | NR |
| 3 | Allstate | 9.1 | A+ | AA | 3 |
| 4 | Nationwide | 7.4 | A+ | A+ | 3 |
| 5 | Liberty Mutual | 7.4 | A | A | 3 |
| 6 | USAA | 4.6 | A++ | AA+ | 5 |
| 7 | Farmers | 3.9 | A | A | 3 |
| 8 | Alfa Mutual | 3.5 | A | AA | NR |
| 9 | Shelter | 2.8 | A | NR | NR |
| 10 | MetLife | 2.2 | A+ | AA- | 2 |
Source: Insurance Information Institute, AM Best, S&P, JD Power
The cost of insuring your home isn’t cheap. In fact, statistics show that the average annual premium for homeowners is $1,525 in MS. Mississippi ranks sixth highest in the nation for homeowners insurance, according to III.
What this means for homeowners or those looking to buy a home is they need to shop around to find the most affordable rates on Mississippi home insurance.
How To Get The Best Rates
It’s a good idea to talk to your insurance agent to find out how you can reduce the cost of insurance. If you don’t already have homeowners insurance, you will want to find the best rates when comparing quotes.
You can ask for a higher deductible which will reduce your premiums. Be careful with this option and ensure you can afford the deductible if you have to file a claim.
Another way to get a better rate is by combining vehicle insurance with homeowners insurance. The multi-policy discount can reduce your premiums.
Check your credit score because it’s often tied into your insurance premiums. If you can work to improve your score, you may find that you save quite a bit on insurance.
Find out if installing a home security system or other safety features in your home will reduce your rates. You may also be able to lower your premiums if you don’t have a swimming pool or other features that can be considered hazardous.
What you don’t want to do
One thing you don’t want to do to get a lower rate is to reduce your coverage. Many people try to get by with the lowest amount of coverage, but you must think about what would happen if disaster strikes. Whether it is a liability incident or a storm with major damage, you will be glad for the coverage when you need it.
Even though homeowners insurance is an essential item for most people who own their own homes, it can be an expensive cost. You should compare rates and find ways to save money without cutting out necessary coverage. If you can get premiums below the state average, you should be proud of your success. Just make sure you know what you’re paying for, how much it covers, and any limitations. Choosing the right home insurance is about more than just the cost.
Resources:
Insurance Information Institute
Wikipedia
For more assistance, please contact your local state department of insurance:
Mississippi Insurance Department
- 800-562-2957
- consumer@mid.ms.gov
