How to Save on Coverage in Mississippi

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

Homeowners insurance provides financial protection if a disaster should strike.

Standard plans cover structural damage to the house and any damage to personal property that results from a variety of situations that can include but are not limited to fire; lightning; wind storms (hurricanes and tornadoes), ice damage and hail; explosion; riots or certain acts of violence; smoke damage; theft and vandalism; falling objects; inclement weather such as snow or sleet; frozen pipes, HVAC or problems with other household systems. A policy also covers personal liability by providing financial protection if you or a family member causes a guest to be injured or inflicts property damage.

It is important to note that a plan does not cover damages or losses that result from neglect, intentional loss or malicious damage, movement of earth, general power failure and acts of terror or war.

How much coverage is offered falls into one of three categories:

• Actual Cash Value: This is the cost to replace your home or possessions, accounting for the useful lifespan and any applicable depreciation.
• Replacement Cost: A costlier option which doesn't take depreciation or useful lifespan into consideration when reimbursing a policyholder.
• Guaranteed Replacement Cost: The amount it takes to rebuild your dwelling to the exact condition it was in before the peril occured.

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

How to Make the Right Buying Decision

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

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

• an overview of your home;
• a calculation of the distance your home is to the closest fire hydrant. Also the response time of the nearest fire department;
• the square footage of your dwelling;
• any security systems, monitoring or deadbolt locks installed;
• a picture of your residence; and
• and the amount of protection you would like to buy.

Disaster Considerations

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

Almost the entire state is susceptible to water damage 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 policies do not cover this particular disaster, which is why the federal government established the National Flood Insurance Program.

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

Assistance for Residents

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

Those requesting assistance can call the state department's Consumer Help Line at 800-359-2453.