Is homeowners insurance required in Mississippi?

I recently bought my first home in Mississippi. I know that protecting my home with Mississippi homeowners insurance is a good idea, but am I required by law to purchase it? What is covered by homeowners insurance in Mississippi? How can I find affordable coverage?

While car insurance is required by law in most states, including Mississippi, you are not required by law to purchase homeowners insurance in Mississippi. 

But it’s important to understand that your mortgage lender will require you to have homeowners insurance, and will require proof that you have it. 

Why? Well, your lender is technically part owner of your home. If your home is damaged in some way by something like a fire or a storm, home insurance helps you pay for making repairs or rebuilding. 

If your home was destroyed and you had no way to pay to rebuild it, would you continue to make your mortgage payments? The home is uninhabitable, and the mortgage would have little to no value. Foreclosure isn’t a great option for the mortgage company to recoup its losses, so your home insurance protects your mortgage holder from financial losses after a disaster as much as it protects you.

Some lenders may require the minimum amounts of coverage you need and the type of policy you purchase in addition to some other stipulations. A Mississippi independent insurance agent can help you design a policy that satisfies all of your lender’s requirements.

And remember, even if you purchase your home for cash or you no longer have a mortgage, having homeowners insurance is always a good idea. 

What are the risks if I don't have homeowners insurance in Mississippi?

Homeowners insurance in Mississippi covers a wide range of perils that could potentially damage your home, your belongings, or certain other structures on your property. You need it in order to repair, replace, rebuild, and recover financially when your property or belongings are stolen, damaged, or destroyed by a covered peril. 

Typically, homeowners insurance helps you repair and rebuild your home and replace your belongings if they are by certain covered perils, or causes of loss, including (but not limited to): 

• Fire and smoke
• Lightning
• Wind
• Hail
• Theft
• Vandalism

If you experience any of these and do not have Mississippi homeowners insurance, how would you replace your belongings or rebuild your home? Homeowners insurance provides the solid financial backup you need should the worst happen.

Where can I find Mississippi homeowners insurance that fits my budget?

Homeowners insurance rates are definitely not one-size-fits-all, so it’s hard to know exactly what the Mississippi homeowners insurance premiums will be for your unique home. According to the Insurance Information Institute, the annual average premium for homeowners insurance in Mississippi is $1,537, or 7^th highest in the US. 

You can find affordable coverage, however, and your rates may be higher or lower than average depending on your home’s characteristics, your individual risk factors, and your coverage needs. 

A local independent insurance agent can help you shop around for the best rates and coverage for your needs. Independent agents aren’t tied down to one carrier, so they can obtain multiple quotes and help you make an informed choice.