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Average Cost of flood insurance in Mississippi.

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 more is likely coming.

We believe 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 looms, or we have heard on the news that there is flooding forecasted or happening too close to our home.

If your home or business is in a flood zone, that is considered a low flood risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate and 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.  80 percent of these individuals had water in their homes or buildings 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 often hear that people believe that the government will help, which is true.  However, a few things must align for you to get government assistance.

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 – Homeowners’ average amount of assistance 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 on your financial future by forgoing flood insurance coverage?

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, 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 of 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” than it is.

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 area’s 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 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, is the government option for flood insurance.  The NFIP has enjoyed a 50-state monopoly on the flood insurance market.

Not “private flood insurance” but NFIP Resellers

If you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any 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.

Mississippi private flood insurance market 

There are alternatives to the NFIP or government insurance.  It is called Private flood insurance, most notably Lloyd’s 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.  Please click here if you are ready to have us do the work for you.

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

Lloyd’s 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.

Lloyd’s of London has a rich history attributed to having invented the first modern insurance model. Unlike most of its competition, Lloyds of London is not a company but a corporate body.  This structure works well since it has been around for over 330 years. Lloyds operates under multiple financial backers pooling their capital to spread the risk.

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

Lloyd’s of London Flood Insurance

FEMA vs Private Flood Insurance

Lloyd’s also insures the world with flood insurance, meaning they cover flooding events in India, Australia, and much of Europe.  The “game” of insurance is to spread your risk since Lloyds is worldwide.

My joke here is that Lloyds is banking on God’s promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole world’s flood claim.

How much does flood insurance cost in Mississippi?

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

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 the grid below):

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.

Your property is in a higher-risk flood zone, 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 unique to the structure. We will try to give you an idea of 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 and 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 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

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

 

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

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

Lloyd’s 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. They seem to be writing almost all risks; however, they do not write any property in a designated floodway or has a depth of -4 under the BFE.  In our example, with our BFE being 274, they will not accept this risk if the lowest floor is 270.  They will not take anything that has had a flood loss. They 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, that will need to be added.

Private Flood insurance option (option 2) Not Lloyd’s

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

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

This option will take properties that have had one flood loss for 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.

Private Flood Insurance –  Lloyd’s of London (option 3)

This option must be written on the building’s Replacement Cost Value (RCV). 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

The annual premium in High-Risk flood zone is $819.20 (a 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 slightly different from some of our other Lloyd’s flood options.  We usually reserve this one if the property doesn’t fit the above options. We can adjust coverages to control premiums. As mentioned before, these underwriters’ rates are all over the board.  It is worth shopping through to ensure we are getting you the best premium possible. They don’t need an elevation certificate to rate.

Private Flood Insurance –  Lloyd’s of London (option 4)

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

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

This option came from the company that used to run the NFIP program, so the coverage matches the NFIP coverage with two differences. They offer living expenses covering 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.

Private Flood Insurance –  Lloyd’s of London (option 5)

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

The 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 sometimes seems to be a glitch.

More options are 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 a 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.

Click here to have our shop and save you money.

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

Let’s start with Corinth, Cleveland, Clay, and West Point, Mississippi, where the average flood rate is $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, including $239,075 in written premiums.

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.

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, 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.

Four thousand one hundred sixty-seven 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.

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 Mississippi: 5,113!  The premiums in Gulfport total $3,325,574, allowing 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.

Long Beach, Mississippi, has 1,776 flood policies 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, including $1,283,922 in flood premiums.

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

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.

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

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

One thousand six hundred 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, with $1,238,193 in flood premiums.

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

Let’s check out Jones and Laurel, Mississippi, where the average flood rate is $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 premiums.  The average flood rate here is $658.

Next 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!

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.

Four hundred ten 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 premiums.

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, including $367,112 in total premiums.

Considering 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 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.

Four hundred seventy-three 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.

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 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, with $1,138,209 in total premiums.  The average flood rate in Greenville is $833.

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

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

Thanks for checking out all the flood information on 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.

About 30 percent of NFIP claims payments go to the same 3 percent of insured “repetitive loss” structures yearly. 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. 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.

How to save money on Flood Insurance in Mississippi VE flood zones

All homes that are ocean-facing are custom built, so with this special consideration, our Lloyd’s of London VE flood zone and other Private Flood Insurance options for oceanfront properties consider this with variable coverage options and significant savings. Below is a case study for a property we were shopping for just last week.

Our example was in the Pass Christian, MS area and is in a VE flood zone map.

For the coverage of $250,000 with no contents and a $5,000 deductible, the NFIP annual cost for flood insurance in a VE flood zone is $16,359.00. Ouch!

Since we are who we are and experts in Flood Insurance, we will look at every property in every way possible to ensure that we are getting the best premium for our clients, and WE often Do (smile wink)

We tried this same property on our Private flood options and were able to get the premium to under $2,500, and we have, in some cases with similar properties, get the annual premium to $600. This was a feather in our cap and made our clients very happy. Again all properties are unique in these VE flood zones, but if we can find a private flood policy for you, we guarantee it will be better than the NFIP option.

Let us help you save money today.