The Best Mississippi Home Insurance Companies

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Homeowners insurance isn’t cheap in Mississippi. In fact, Mississippi is the seventh most expensive state in the country for home insurance. Mississippians pay higher rates due to the high cost of losses incurred by insurance providers, more than $400 billion in 2018.

When shopping for home insurance, get several quotes anf make sure your policy includes dwelling, other structures, loss of use, medical payments and personal property coverages. You may also need to consider add-ons to your standard policy to cover expensive personal belongings or home office equipment.

Most major home insurance companies write policies in Mississippi. Finding the insurer that’s right for you might seem daunting, but we’ve done much of the work for you to find the best Mississippi home insurance companies.

Best home insurance companies in Mississippi

To choose the five best Mississippi home insurance companies, we relied on the analysis and research of AM Best, the Better Business Bureau, the III and J.D. Power. Mississippi has vast areas of farmland, dotted with small rural communities. With that in mind, we also selected a couple of providers that can meet the insurance needs of farmers.

  • Allstate: Allstate ranked sixth in J.D. Power’s 2019 U.S. Home Insurance Study, with three out of five star ratings in all categories. We particularly like Allstate’s discounts. You can earn up to a 25 percent discount when you purchase multiple policies and up to 20 percent off if you switch to Allstate after remaining claims free with another provider. Allstate offers a wide range of insurance products, including auto, business, condo, identity protection, landlord, life, motorcycle and renters coverages, along with investment products and retirement plans.
  • Auto Club of Southern California Insurance Group (AAA): For generations, American motorists have relied on AAA for roadside assistance, but the auto club also sells homeowners insurance. AAA’s home insurance stands out for its optional guaranteed rebuilding cost coverage, which pays to rebuild your home at current costs, regardless of your policy’s limit of liability. With AAA, you can earn up to a 38 percent discount if you buy a newly constructed home and up to a 13 percent discount when you renovate major home systems. Plus, AAA auto club members automatically save $40 on homeowners policies. AAA also sells auto, life, small business and travel insurance and offers annuities, credit cards and notary services at branch offices.
  • Farm Bureau: Among our top five home insurance companies, Farm Bureau offers the lowest annual rates. We like the fantastic coverage Farm Bureau offers for rural Mississippians, including, farm chemical, farm equipment, farm liability, farm produce and livestock insurance. The carrier also offers church and commercial business insurance, along with life insurance and policies to cover ATVs, boats, motorcycles and RVs. Farm Bureau offers an online quote tool that enables you to see how much you’ll pay after answering a few questions, along with local offices throughout the state.
  • State Farm: In J.D. Power’s 2019 Home Insurance Study, State Farm ranked fourth in the nation, with a four out of five star rating in overall customer satisfaction. Based on 2018 market share statistics, State Farm is the top insurer of home insurance. The insurer also offers homeowners a few ways to save on their premiums, including a discount for installing impact-resistant roofs. Besides home insurance, State Farm sells condominium, farm and ranch, manufactured home, rental property and renters insurance, along with term, universal and whole life insurance. The provider also offers banking services, including auto and boat loans, checking accounts, home mortgages, money market savings accounts and rewards credit cards.
  • USAA: USAA was the only homeowners insurance company to earn five out of five stars in all categories in J.D. Power’s study. While it earned the top score, USAA doesn’t qualify for ranking in the study because it only offers products to members of the U.S. Armed Forces and their eligible family members. USAA offers replacement cost dwelling and personal property coverages at no additional charge. USAA also provides earthquake coverage in its standard policy. USAA offers its members one stop shopping for insurance, including auto, condo, flood, landlord, motorcycle, renters and small business policies. The company also offers checking and savings accounts, investment products, home mortgages, retirement plans and VA loans.
J.D. Power Overall Satisfaction Rating AM Best Rating BBB Rating III Ranking
AAA 4 out of 5 No rating A+ Not ranked
Allstate 3 out of 5 A+ (Superior) A+ 2
Farm Bureau Not rated A (Excellent) A+ Not ranked
State Farm 4 out of 5 A++ (Superior) A+ 1
USAA 5 out of 5 A++ (Superior) No Rating 4

Methodology

AM Best is a global leader in rating the financial strength of insurance companies. An insurer’s credit rating is important, because it’s an indicator of how well it can meet its claims obligations. Finding a provider with sound financial footing is especially important when insuring your home, likely your most valuable possession.

J.D. Power has earned a reputation for its automobile reviews and annual home and auto insurance company studies. Each year, Power conducts a survey of home insurance companies, rating each provider on its performance in areas such as price, claims handling, billing practices, customer service and policy offerings. In Power’s 2019 U.S. Home Insurance Study, three out of five of the companies we chose ranked within the top six insurers in the nation.

The III is an invaluable source of information about the insurance industry. Consumers rely on the Institute’s expert financial guidance and insurance industry professionals depend on its in-depth market analysis and statistical studies. To compile our list of top Mississippi homeowners insurance companies, we relied on the III market share data to find a few companies with the largest service areas.

Generations of Americans have relied on the Better Business Bureau to help settle grievances with businesses large and small. Four out of five of the insurers we chose have earned the BBB’s highest rating.

Average homeowners insurance cost in Mississippi

Mississippi homeowners pay an average annual homeowners premium of $2,290, 86 percent more than the national average. We requested quotes from our top Mississippi home insurance companies and received a wide range of rates.

Profile:

  • Married couple: both aged 40
  • Location: Olive Branch, Mississippi
  • Home built: 1996
  • Construction type: Masonry, wood frame, asphalt shingle roof
  • Dwelling coverage: $312,000
  • Liability coverage: $300,000
Home insurance company Annual premium
AAA Not available
Allstate $4,602
Farm Bureau $1,679
State Farm $3,206
USAA Not available

Home insurance coverage options in Mississippi

When shopping for homeowners insurance, look for standard policies that include:

  • Dwelling coverage: This coverage helps pay to repair or rebuild your home if it is damaged or destroyed by an explosion, a fire, a storm or vandals.
  • Other structures coverage: If a motorist destroys your fence or your detached garage sustains storm damage, other structures coverage can help pay the repair bills.
  • Loss of use coverage: If a fire or storm damages your home, your loss of use coverage can help pay temporary living expenses such as hotel and food costs if you must relocate for repairs.
  • Liability coverage: If a guest sues you after sustaining an injury on your property, liability coverage can help pay your legal expenses.
  • Guest medical expense coverage: If a neighbor falls on your patio and sustains an injury, guest medical expense coverage can help pay the victim’s medical bills.
  • Personal property coverage: This coverage pays to replace your personal belongings, like clothing and furniture, following a covered calamity such as a fire.

Most Mississippi homeowners insurance companies also offer optional coverages. These addons help fill in the gaps that standard policies don’t cover.

  • Valuable items coverage: Standard policies limit the amount of a claim for certain types of personal property, like fine art, firearms and jewelry. So, if you own an expensive wedding ring, you might consider adding valuable items coverage to protect it.
  • Replacement cost coverage: Most standard home insurance policies pay actual cash value for totaled homes and personal property. However, if you purchase optional replacement cost coverage, you can file a claim for the actual cost of repairing or rebuilding your home, or replacing personal belongings, subject to your policy’s deductible and limits.
  • Business property coverage: If you have a home office, the limits of your standard policy might not offer enough protection for expensive items such as computers, so you might want to consider this optional coverage.
  • Identity theft protection: Fraudulent credit card use and identity theft are rampant. Insurers offer various levels of identity theft coverage. Some policies only help pay expenses related to restoring your identity, while others offer credit monitoring.
  • Flood insurance: Standard policies don’t cover flood damage. Some insurers offer flood insurance as an optional coverage. If your insurer doesn’t offer flood coverage, you can purchase a policy through the National Flood Insurance Program.

Common causes of home insurance losses in Mississippi

In 2018, insurers incurred nearly $402 billion in homeowners insurance losses in Mississippi, according to the III. Mississippi homeowners pay higher than average home insurance rates due to the frequency and severity of storms.

Mississippi ranks third in the nation for tornadoes. In 2018, 68 tornadoes touched down in the Magnolia State, thankfully with no fatalities. Unfortunately, tornadoes frequently plague Mississippi, leaving piles of rubble in their wake and increasing the financial risk insurers must shoulder.

Mississippi’s Gulf Coast faces even graver threats, hurricanes and tropical storms. In 2017, Hurricane Harvey pummeled the Gulf coast causing an estimated $18.4 to $20.4 billion in property damages in six states, including Mississippi.

Frequently asked questions

What is the best homeowners insurance in Mississippi?

The “best” homeowners insurance in Mississippi is relative to your needs. Many homeowners need a simple, standard policy, while other homeowners have more complex insurance needs. When shopping for home insurance, pay close attention to the details such as liability and personal property limits. If a standard package doesn’t meet your needs, find another insurer or consider adding optional coverages.

How do I get homeowners insurance in Mississippi?

Most major insurance companies service Mississippi, and many offer online quotes on their websites. Nationwide carriers such as Allstate and State Farm also operate local offices throughout Mississippi. Whether you shop online or visit local insurance agencies, get quotes from several insurers before deciding on a home insurance policy.

Is Mississippi homeowners insurance expensive?

On average, Mississippi home insurance rates are 45 percent higher than the national average. Mississippians pays higher homeowners insurance rates due to the frequency and severity of storms.

Is homeowners insurance required in Mississippi?

No. State law doesn’t require you to purchase home insurance, but if you take out a mortgage to buy a home, the lender will require it.