Average Cost of flood insurance in Mississippi.

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MS flood Insurance

Does my Mississippi homeowner insurance cover flooding?

A typical Mississippi homeowners’ policy is written through Farmers, State Farm, Allstate, and Progressive, for instance, excludes flooding as something that will be covered under their homeowner’s policy.

In most cases, the only way to get flood coverage is by purchasing a stand-alone flood insurance policy. However, you should ask your homeowners agent if you can add an endorsement to your homeowner’s policy to cover flooding. Yet, don’t be too surprised if the answer is NO.

Do I need flood insurance in Mississippi?

It is important to have flood insurance coverage in Mississippi because our beloved Cowboy State has seen a fair share of flooding, and there is likely more coming.

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We believe that most homeowners think about Flood insurance in Mississippi at some point, maybe before buying a home, or during the closing process.  However, many of us only think about it when a big storm is looming, or we have heard on the news that there is flooding forecasted or happening currently too close to our home.

If your home or business is in a flood zone, that is considered low flood risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate agents and some insurance agents may even say you don’t need it.

I ask you to consider the facts: 20-percent of all flooding events across our nation come in areas that are considered low risk. After our last few major storms (Hurricane Harvey), we saw flooding in these low-risk areas.  In 80 percent of these individuals, they had water in their home or building and didn’t have flood insurance coverage.

In Harris county, nearly 135,000 homes were damaged.  Three-fourths of these properties were considered low to moderate risk.

We hear often that people believe that the government will help, and this is true.  However, there are a few things that must align for you to get government assistance.

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1 – The president of the United States must declare the flooding event a state of emergency.  If this doesn’t happen, then there won’t be assistance.

2 – The average amount of assistance that homeowners get after a flood, when they do not have flood coverage, is $5,000.  The average cost of damage to one’s property after a flood is $38,000+.  That $5K you get from the government?  It comes in the form of a loan and you will need to pay it back.  Are you willing to gamble away your financial future by forgoing flood insurance coverage?

Mississippi flood rate maps

https://www.bloomberg.com/graphics/2017-fema-faulty-flood-maps/

Mississippi Flood Insurance

One more note on these low-risk flood zone maps. Many of these maps are over 40-years old. If the area has been developed, then there is likely more concrete, creating a barrier for land that previously, might have absorbed the massive downpour.

Because of all these factors, it is difficult for property owners to know their true risk of flooding. FEMA admits that their flood maps only give an idea for part of the risk. Our recent storms are facts that it can rain anywhere within Mississippi, and you should consider getting flood coverage, so you are not uninsured when you need it most.

FEMA flood zone maps often take years to go into effect after the terrain was studied, this gives the impression that the area is “more up to date” then it really is.

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The average cost for Mississippi flood insurance in these Low-risk areas is $595 per year.

FEMA’s National Flood Insurance Program (NFIP) and all federally backed lenders rely on these Mississippi flood insurance maps to assess risk, set premiums, and determine who is required to purchase flood insurance. Bad information about an areas flood risk can leave property owners under or uninsured.

 

How much is flood insurance in Mississippi?

Mississippi NFIP flood insurance.

There are many options available in Mississippi regarding flood insurance, but they basically fall into two main categories

The Government options also known as FEMA or NFIP and the private flood insurance market

The National Flood Insurance Program (NFIP), also known as FEMA, which is the government option for flood insurance.  The NFIP has enjoyed a 50-state monopoly on the flood insurance market.

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Not “private flood insurance” but NFIP Resellers

If you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the of the logos below then you are buying the NFIP flood policy that is just being resold through a government program. These companies are private companies, but their flood insurance is not. Here is a list of the 70 companies that resell the NFIP policy.

https://www.fema.gov/wyo_company

Progressive Flood Insurance

Mississippi private flood insurance market

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Llloyds of London Flood Insurance ShopperThere are alternatives to the NFIP or government insurance.  It is called Private flood insurance most notably Lloyds of London Flood insurance, however, there are other options available in Mississippi. We shop all the options for your property in your region to ensure you are getting the best premium.  If you are ready to have us do the work for you, please click here.

Our shopping does include the NFIP because sometimes we find that with government subsidies you can get a much better premium.

Click here for a quote

Lloyds of London Flood Insurance Mississippi Market

 

Mississippi is fortunate to have many Lloyds of London flood insurance options. Although many Lloyds flood insurance companies will have you assume that there is only one option, nothing could be further from the truth.

Lloyds of London has a rich history and is attributed to have invented the very first modern insurance model. Unlike most of its competition, Lloyds of London is not really a company but rather a corporate body.  This structure works quite well since it has been around for over 330 years. Lloyds operates under multiple financial backers that all pool their capital to spread the risk.

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I have two blog posts that take a deep dive into Lloyds of London and what they mean to Mississippi ’s flood insurance market.  If you are interested, the links are below.

Lloyds of London Flood Insurance

FEMA vs Private Flood Insurance

Lloyds also insures the world for flood insurance, meaning they cover flooding events in India, Australia as well as much of Europe.  You see the “game” of insurance is to spread your risk since Lloyds is worldwide.

Lloyds of London Private Market Flood InsruanceMy joke here is that Lloyds is banking on Gods promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole worlds flood claim.

How much does flood insurance cost in Mississippi?

There are many factors that go into getting the cost of flood insurance for Mississippi. If your home is in what is considered low-to-moderate risk, you can get a heavily subsidized policy though the government.

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Mississippi flood insurance low-to Moderate Risk rate and cost.
This is Flood Zone X, which is not lender required flood zone.

This is usually identified as an X-flood zone.  Then we would suggest the government Preferred Risk Policy (PRP) which is a subsidized policy and has set flood insurance coverage limits (see grid below):

$250K (Residental) /$500K (commercial) Building
NFIP Maximum Coverage Limits

Here a link if you want to really dig into this one. Be ready for an eye chart because every option is public record and should be standardized accost whoever writes these policies.

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The average cost for flood insurance in Mississippi with the maximum set limits in these Low-risk flood zone areas is $405 – $700 per year.

https://www.fema.gov/media-library-data/1523307331106-4cf9726b2eb04c3471a3e9d37a58fa6a/09_prp_508_apr2018.pdf
A flood zone and SHFA rate maps
FEMA High-risk Rates

If your property is in higher-risk flood zone, it is usually identified with a Flood Zone AE. Your lender will require you to have flood insurance. The cost of flood insurance in Mississippi depends on many factors that are unique to the structure. We are going to try to give you an idea for the most common homes we see in Mississippi with a slab on grade foundation.

We will look at the Mississippi cost of flood insurance for the NFIP maximum of $250,000 for the (building only) with NO CONTENTS and our recommended deductible of $5,000.

We will be rating this example on the NFIP, as well as on a few of our private flood insurance policies, specifically Lloyds flood insurance options in Mississippi.

Cost of Flood Insurance in MISSISSIPPI in high-risk flood zone AE

Our example is in Jackson but the premiums will be the same if in Gulfport, Hancock, Biloxi, Pascagoula, and many other Mississippi flood ones.

In our example, the Base Flood Elevation (BFE is 274) and is a home that is built before 1973

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NFIP option in Mississippi Flood Zone AE 

NFIP – Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

NFIP Annual premium in High-Risk flood zone is $3,452.00

This option is what we see if the property has had a flood loss before, and either doesn’t have an Elevation Certificate applied or the Elevation certificate showing that the lowest floor is 4 feet under the BFE for the area. You can use 10% of your coverage to cover other structures on your property

SHFA

 

Mississippi Private flood insurance – Lloyds of London Flood Insurance (option 1)

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Lloyds of London (option 1)  Annual premium in High-Risk flood zone is $1,029.13

This option is great, and we are very happy when we can get this option for our clients as well. They seem to be writing almost all risks; however, they do not write any property that is in a designated floodway or has the depth of -4 under the BFE.  In our example, with our BFE being 274, if the lowest floor is 270, then they will not accept this risk.  They will not take anything that has had a flood loss. They do offer limited coverage for basements and do not require an Elevation Certificate to rate, and as a percentage of coverage for loss of use. If you want coverage for other structures, then that will need to be added.

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Private Flood insurance option (option 2) Not Lloyds

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Annual premium in High-Risk flood zone is $2,376.00

This option will take properties that have had one flood loss as long as it has been more than five years, and the payout was under $100,000 on the claim. Their coverage matches the NFIP.  They will write practically all risks, don’t need an elevation certificate to rate, and are a bit lower in premium than the NFIP.

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Private Flood insurance –  Lloyds of London (option 3)

This option must be written on the Replacement Cost Value (RCV) of the building, otherwise there is a co-insurance penalty that kicks in. So, $250,000 might be a bit low in California, but to keep this going, let’s just use that for this option

Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible

Annual premium in High-Risk flood zone is $819.20 (great price).

This options rating system is all over the board.  Sometimes we get a crazy great price, but other times the premium is way higher than the NFIP will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $50,000 on the claim. Their preferred coverage is at replacement cost, which is a bit different from some of our other Lloyd’s flood options.  We usually reserve this one if the property doesn’t fit into any of our options above. We can adjust coverages to control premiums. As mentioned before, this underwriters’ rates are all over the board.  It is worth shopping through to make sure we are getting you the best premium we can. They don’t need an elevation certificate to rate.

Private Flood insurance –  Lloyds of London (option 4)

Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible.

Annual premium in High-Risk flood zone is $1,140.86

This option came out of the company that used to run the NFIP program, so the coverage almost exactly matches the NFIP coverage with two differences. They offer living expenses which will cover your cost, when you are displaced from your home during repairs (most Lloyds flood policies offer this).  They also offer swimming pool clean out, which is kind of unique so if you have a pool ask for this coverage.

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Private Flood insurance –  Lloyds of London (option 5)

Coverage of $250,000 (RCV) building coverage. No Contents and $5,000 deductible.

Annual premium in High-Risk flood zone is $790.00

This options rating system is also all over the board. Sometimes we get a crazy low price; other times the premium is way higher than the NFIP. They will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $25,000 on the claim. They have been rumored to give a low price the first year and then non renew following years or sometimes they jack the price way up so we will watch them. They have a slick system, and their underwriting is managed by a 3rd party, which also seems to be a glitch sometimes.

There are more options coming online every day, and we are working to be looking into every viable option.

Currently, Mississippi has 63,024 NFIP policies in force to date with the total cost of $43,786,173.  That would make the average flood rate for Mississippi $695. Of course, some will pay more, and some will pay less.

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Hello, Mississippi!  Thanks for visiting our page for all your flood insurance needs.

Let’s start off with Corinth, Cleveland, Clay, and West Point Mississippi, where the average flood rate comes in at $712.  These areas have 441 active flood policies and $313,923 in flood premiums.

Next up is Bolivar, Mississippi where there are 392 flood policies in effect.  Bolivar has an average flood rate of $610 which includes $239,075 in written premium.

Now, we’ll look at Clarksdale, Coahoma, and De Soto, Mississippi where they have $249,338 in flood premiums with 367 active flood policies.  The average flood rate for these areas comes in at $679.

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Another group to look at includes Horn Lake, Olive Branch, and Southaven, Mississippi.  This group’s average flood rate calculates to $891.  The active flood policies here number 613 with $546,120 in flood premiums.

Hattiesburg, Mississippi has an average flood rate of $984.  The number of active flood policies here total 519 with $510,711 in written premium.

In George and Grenada, Mississippi, the policies total 315 with $216,407 in total premiums.  The average flood rate for George and Grenada is $687.

When we look at Bay St. Louis, Mississippi, we find their average flood rate is a little lower at $596.  Bay St. Louis has 2,141 in active flood policies and $1,276,672 in flood premiums.

4,167 flood policies are active in Hancock, Mississippi.  Hancock has $2,444,442 in premiums which allows the average flood rate to be $587.

$1,127,016 is the total for premiums in Waveland, Mississippi.  Waveland has an average flood rate of $660 which includes 1,707 in total active flood policies.

Hello Biloxi, Mississippi!  You almost have the highest number of active policies in the state with 4,977.  The premiums in Biloxi total $3,245,130 which allows the average flood rate to be $652.

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The average flood rate rises to $713 for D’iberville, Mississippi.  D’iberville has 682 flood policies in effect with $486,426 in total premiums.

Gulfport, Mississippi!  You all have a high number of active policies in the state of Mississippi: 5,113!  The premiums in Gulfport total $3,325,574 which allows the average flood rate to be $650.

If we look at Harrison, Mississippi, we find an average flood rate of $573.  The premiums in Harrison total $1,280,679.  The policies in Harrison add up to 2,236.

Now Long Beach, Mississippi has 1,776 flood policies in effect with $1,030,634 in flood premiums.  The average flood rate for Long Beach is $580.

2,074 is the number of active flood policies in Pass Christian, Mississippi.  Pass Christian has an average flood rate of $619 which includes $1,283,922 in flood premiums.

Clinton and Hinds, Mississippi have a total for 479 active flood policies with $304,932 in written premium.  The average flood rate for Clinton and Hinds is $637.

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Let us to the flood insurance shopping for you – Save time.

Thanks for stopping by to visit our page Jackson, Mississippi!  Jackson has the highest number of active flood policies with 9,327.  The premiums in Jackson total $7,402,501.  This allows the average flood rate for Jackson to be $794.

In Pearl River Valley, Mississippi, the average flood rate is $540.  The total number of active flood policies in Pearl River Valley include 311 with $167,980 in flood premiums.

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$760 is the average flood rate for Humphreys and Issaquena, Mississippi.  The premiums here total $205,923 with 271 flood policies in effect.

1,600 flood policies are active in Gautier, Mississippi.  Gautier has an average flood rate of $575 with $919,239 in total premiums.

The premiums in Moss Point, Mississippi total $735,148.  The total number of active flood policies in Moss Point is 1,101 which allows the average flood rate to be $668.

The average flood rate drops to $475 in Ocean Springs, Mississippi.  Ocean Springs has 2,605 flood policies in effect with $1,238,193 in flood premiums.

Pascagoula has 4,796 active flood policies.  The average flood rate for Pascagoula, Mississippi is $688 which includes $3,299,278 in written premium.

Let’s check out Jones and Laurel, Mississippi, where the average flood rate comes in at $872.  Jones and Laurel have 302 active flood policies and $263,387 in total premiums.

Now, we’ll look at Oxford, Lamar, and Lauderdale, Mississippi.  These areas have 750 active flood policies and $493,178 in written premium.  The average flood rate here is $658.

Next up is Meridian, Mississippi, where the premiums total $294,315 with 321 active policies.  The average flood rate in Meridian is $917.  Give us a call Meridian!

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The average flood rate in Tupelo and Greenwood, Mississippi is $868.  The premiums in Tupelo and Greenwood total $521,757 with 601 flood policies in effect.

410 flood policies are active in Leflore, Mississippi.  Leflore has an average flood rate of $541 which includes $221,989 in total premium.

$945 is the average flood rate in Columbus, Mississippi.  Columbus has 656 flood policies in effect with $619,864 in flood premium.

Lowndes, Mississippi has 428 active flood policies and $277,236 in flood premiums.  The average flood rate in Lowndes is $648.

Let’s look at a group of areas that include Canton, Ridgeland, Amory, Monroe, and Oktibbeha, Mississippi.  These areas have an average flood rate of $647.  The premiums here total $549,670 while the active flood policies add up to 849.

There are 617 flood policies in effect in Madison, Mississippi.  Madison has an average flood rate of $595 which includes $367,112 in total premiums.

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Looking at Columbia and Marion, Mississippi, we find an average flood rate of $1,028.  The premiums here total $294,054 with 286 active flood policies.

In Starkville, Mississippi, we find 322 flood policies in effect with $173,705 in premiums.  The average flood rate for Starkville is $539.

The average flood rate rises to $576 in Pearl River, Mississippi.  Pearl River has 717 active flood policies and $413,064 in flood premiums.

A group of areas that include Picayune, Quitman, and Brandon, Mississippi have an average flood rate of $615.  The premiums here total $329,648 with 536 flood policies in effect.

473 flood policies are active in Flowood, Mississippi.  Flowood has an average flood rate of $1,838 with $869,308 in total flood premiums.  Give us a call Flowood!

The average flood rate drops to $786 in Pearl, Mississippi.  Pearl has $320,866 in flood premiums with 408 policies in effect.

The average rate drops again to $544 in Rankin, Mississippi.  The total policies number 652 in Rankin.  Rankin has $354,827 in flood premiums.

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Looking at Richland, Rolling Fork, and Sharkey, Mississippi, we find 355 active flood policies and $306,271 in flood premiums.  The average flood rate for these areas is $863.

The average flood rate rises to $1,055 when we look at Indianola, Sunflower, and Tunica, Mississippi.  These areas have 274 flood policies in effect and $289,135 in total flood premiums.

$803 is the average flood rate for Vicksburg and Warren, Mississippi.  The premiums here total $349,462 with 435 policies in effect.

Greenville, Mississippi has 1,366 flood policies in effect with $1,138,209 in total premiums.  The average flood rate in Greenville is $833.

507 flood policies are active in Washington, Mississippi.  Washington has an average flood rate of $743 with $376,930 in flood premiums.

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Finally, let’s check out Wilkinson and Yazoo, Mississippi where they have $502,824 in total premiums.  The average flood rate for these areas is $976 which includes 515 active flood policies.

Thanks for checking out all the flood information on Mississippi!!

Cost of flood insurance in Mississippi

For decades, the NFIP has over-charged 50 percent of its policyholders and under-charged the other 50 percent, while it has racked up $42 billion in taxpayer-funded losses, equating to more than half of every claim paid by the NFIP since 1978.

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About 30 percent of NFIP claims payments go to the same 3 percent of insured “repetitive loss” structures year after year. When you do the math, this means that the other 97 percent of their flood-exposed constituents could have paid in less and still netted larger claims payouts if they had better access to private flood insurance. In fact, a recent white paper by Milliman found that 90 percent of homes in Sandy-struck New York and New Jersey would see reduced flood insurance rates through private insurers.

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References
the following documents contain additional hydrologic data, flood photos, historic flood descriptions, floodplain delineations and other pertinent information, and should be considered supplemental to this flood warning plan:
https://bsa.nfipstat.fema.gov/reports/1011.htm#COT
https://www.fema.gov/average-claim-payments-date-loss
https://www.fema.gov/national-flood-insurance-program
https://www.fema.gov/media-library-data/1486576697135-ac6348fb2a3d98ceba33cf3f38422dbc/Claim_Loss_Counts_Sept2016.pdf
https://www.fema.gov/media-library-data/1458666638945-d752cb148ef1348b4b1c22acec66a0bd/Claim_loss_count2015.pdf
https://www.fema.gov/media-library-data/1393877884619-3091f75bf9d46a26f5beb7d423c34529/Total_Claim_Count_fy2013.pdf
https://www.weather.gov/safety/flood-states-ms