Residents of the state of Mississippi are at high risk for significant flood damage. Those who live along the Gulf Coast can experience storm surges after hurricanes and tropical storms, and most homes and businesses near the Mississippi River are built-in designated flood plains. These are not the only residents at risk, however, as floods can happen anywhere in this state. In fact, more than 25 percent of all flood claims filed in this state are made by people who live in low-risk areas.
Homeowners and business insurance policies do not usually provide coverage for damages and losses caused by flood damage. Only a flood insurance policy can protect your investment from damages due to rising water. An independent insurance agent in our network can help you secure a flood insurance policy that meets your needs and covers your risks. Contact an agent in your neighborhood today to receive Mississippi flood insurance quotes for various levels of coverage.
Mississippi Flood Insurance Facts According to FEMA
- As of recent years, there were 74,776 flood insurance policies in effect in the state
- This was a 2% decrease over the previous year
- During previous years, MS residents filed 1,339 flood claims
- As a result of these claims, residents received more than $53.2 million in compensation.
- The average MS flood insurance claim in that time period was $39,748
Floods Cause Expensive Property Damage in Mississippi
According to FEMA, as little as two inches of water in 1,000 square foot home will cause an average of $10,000 in damages. A flooded basement may result in structural damage to your home as well as the need to replace appliances such as your furnace, hot water heater, or any other major appliances you may keep in your basement. If the flood waters rise to above-ground floors, the damages will be far more expensive, as personal property such as electronics, furniture, flooring, and wall treatments will often need to be replaced.
Nearly all homeowners, renters and condo insurance policies exclude coverage for flood damage. A very small portion of specialty insurance companies may include this coverage, but it is extremely rare. Furthermore, federal assistance provided by FEMA comes only in the form of low-interest loans that must be repaid to the government. The only way to avoid being stuck with excessive out-of-pocket expenses after a major flood is to be protected by a Mississippi flood insurance policy.
What Is Mississippi Flood Insurance?
The National Flood Insurance Program, or NFIP, was established by Congress in the 1960s to protect home and business owners from the devastating financial hardships flood damage causes. The funding is backed by the federal government. The monthly price of a policy is standard across the nation and is determined by the amount of coverage you are purchasing and your level of risk for flood damage according to government-drawn flood maps. You cannot be turned down for flood insurance even if you live in a high-risk area, and will your rates will not increase because you file an insurance claim.
Is Mississippi Flood Insurance Mandatory?
If your home is located in a designated flood-zone, your mortgage lender will require you to carry a flood insurance policy. Once your mortgage is paid off, you are no longer required to carry this coverage, but given your high risk for costly flood damage, it's a good idea to continue carrying a policy.
If you own a business, flood insurance is particularly important to protect your equipment, materials, and inventory. This coverage is not likely to be included in your business insurance policy, so purchasing a business flood insurance policy may mean the difference between continuing your business operation after a flood or filing for bankruptcy. This coverage is typically only mandatory if you have a mortgage on the building in which your business is housed or if you have taken out a substantial business loan.
What Does Mississippi Flood Insurance Cover?
Flood insurance policies offer two types of coverage. One is for the structure of the home itself and the other covers its contents. You can opt to purchase only one type of coverage or both.
- Building coverage: This provides coverage for damages to the building and its foundation, plumbing, and electrical systems, furnace and air conditioning units, built-in appliances, and permanently installed carpeting over unfinished floors. If you are a landlord, you may opt to only purchase building coverage, as you are not responsible for covering your tenants’ personal belongings.
- Contents coverage: This provides coverage for loss or damage to clothing, furniture, window-treatments, electronics, window air-conditioners, portable appliances, carpeting, and above-ground flooring. Flood insurance does not cover contents in a finished basement. If you are renting your home, you need only purchase this coverage, as you are not responsible for covering damages to the structure of the building you live in.
Secure a Suitable Mississippi Flood Insurance Policy
Though flood insurance is offered by the federal government, you can only purchase it through a qualified commercial insurance provider. It is easy to get flood insurance for your home or businesses with the help of an agent. Your agent can help you determine how much coverage you need and can help you determine how much different coverage options will cost you. Your local member agent can do more than just help you secure a Mississippi flood insurance policy. Agents are available to assist you with all your insurance-related needs and can even advocate for you during the claims process.
Contact an agent in our network today to start comparing Mississippi flood insurance quotes.