Homeowners insurance is a type of property insurance that protects the owner against loss or damage to real estate. This type of insurance is also known as hazard insurance because it offers protection from loss due to natural hazards such as fire, wind, rain, and hail. Homeowners insurance policies also protect the owner from liability for accidents other people could have in the home or on the insured property. The actual cost of your homeowners insurance policy depends on factors such as where you live, the value of your home and personal property, and factors specific to your home and community.
The average cost of homeowners insurance in Mississippi is higher than the national average of $952. Homeowners insurance in Mississippi averages $1451 per year and is the fourth highest in the country. Insurance rates are highest in states along the Gulf of Mexico because properties have a high risk of incurring damage from hurricanes. There are some ways, however, to reduce your costs and find a deal on your homeowners insurance policy.
Have You Shopped Around?
Don’t just accept the first offer you get from the first insurance company you find. Not all insurers and policies are the same, so shop around for the best coverage and price. Don’t forget to consider the tradeoff between a higher deductible and lower annual premium.
Do You Qualify for Group Discounts?
Some companies and organizations arrange for members or employees to receive group discount rates. Check to see if your employer offers this benefit. If you are a member of a professional group or other large national organization, insurance discounts may be one of your membership benefits as well.
Can You Combine Insurance Policies?
Insurance companies offer loyalty discounts if you get more than one policy from them. So, look for what you can save by using one company for both your homeowners insurance and auto insurance policies.
Have You Upgraded Your Home?
If you make upgrades to your home that increase its value, you need to make sure that you update your homeowners insurance policy to cover the higher home value. In certain circumstances, you may also be able to get a discount on your policy for making those upgrades.
Re-wiring
Depending on the age of your home, re-wiring the property may save you up to 10% on your homeowners insurance premium. Older homes may not include electrical systems that are sufficient for handling modern demands for electricity. These older electrical systems are also more prone to shorting out and causing fires. So, re-wiring these older homes lowers their fire hazard.
Roofing
Homes in Mississippi are especially susceptible to roof damage from tornadoes, severe thunderstorms, heavy rain, and hurricanes. Roofing materials are categorized according to their strength, and upgrading your roof can offer you more protection against this type of weather damage. Insurance companies, therefore, offer discounts for upgrading your roof to Class 4 materials. This impact-resistant roofing material can reduce your risk of a large insurance claim and may lower your homeowners insurance premium by five to ten percent.
Sensors
Home protection now goes way beyond simple smoke detectors and security systems. Many homes include a variety of additional gas and water sensors that can detect water or natural gas leaks before they become a problem. Natural gas or carbon monoxide detectors emit an alarm when gas is detected in the air. Water sensors can either be active or passive leak detectors. Passive leak detectors are inexpensive, stand-alone devices that emit an alarm or flash a light when water is detected. Active leak detectors are much more expensive and must be installed on an appliance or throughout a home. These systems shut off the water source entirely when they detect a leak. Adding these types of sensor systems can lower your insurance premium by five to ten percent.
Do You Qualify for Neighborhood Credits?
Living in a gated community or a neighborhood with a homeowners association can actually reduce your annual insurance premium by five to twenty percent. Gated communities have an additional layer of protection against theft and reduce property crime. A homeowners association may not be the same deterrent for crime as a gated community, but research shows that communities with homeowners associations have lower crime rates. Homeowners in these developments tend to know each other and look out for anything unusual around the neighborhood.
Are You Aware of All Possible Discounts?
Some insurance companies have discounts that you can get just for being you. For example, careful homeowners who have not needed to make a claim on their policy for a certain number of years may be eligible for a safe homeowner discount. Non-smokers are not only healthier but are also lower risk homeowners. This lower risk of fire in your home may provide a five to fifteen percent discount.
Does Your Age Help?
If you are retired or over age 55, you may be eligible for lower homeowners insurance rates. Older homeowners are not inherently less risky, but they are typically around their home more often than younger homeowners who have children and are working full-time jobs. Being around the house more often means these older homeowners are more likely to notice a problem around the property earlier. This decrease in reaction time can allow the homeowner to avoid a loss entirely or reduce the damage from something like a broken pipe.
2 Point Highlight
The actual cost of your homeowners insurance policy depends on factors such as where you live, the value of your home and personal property, and factors specific to your home and community.
Homeowners insurance in Mississippi averages $1451 per year and is the fourth highest in the country.
