The best Mississippi home insurance companies
Homeowners insurance is not cheap in Mississippi. With the average cost of home insurance at $1,773 per year, Mississippi is more expensive than the national average of $1,477. Mississippians pay higher rates due to the high cost of losses incurred by insurance providers, which totaled more than $400 billion in 2018.
Most major home insurance companies write policies in Mississippi, so it may seem difficult to find the right option for you.
Best home insurance companies in Mississippi
To choose the best Mississippi home insurance companies, we used J.D. Power & Associates for customer satisfaction scores, 2021 rate data from Quadrant Information Services and our knowledge of coverage options and discounts from the various providers.
|Home insurance company||Average annual premium for $250k dwelling||J.D. Power customer satisfaction score|
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 may 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 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.
Allstate ranks sixth in J.D. Power’s 2020 U.S. Home Insurance Study with a 829/1000 rating. We particularly like Allstate’s discounts. Eligible policy holders may earn up to a 25 percent discount when they bundle multiple policies and up to 20 percent off if they 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-Owners also ranks high on J.D. Power rankings, earning an overall customer satisfaction score of 843/1000. It earns top marks for claims reliability with an A++ (Superior) rating from AM Best. There are extensive options for full-faceted coverage, including guaranteed home replacement cost, water backup of sewers or drains, special personal property, and law or ordinance coverage. Homeowners Plus is another optional package to offer upgraded services and support.
In J.D. Power’s study, State Farm ranks seventh in the nation. The insurer also offers homeowners a few ways to save on their premiums, including a possible discount for installing impact-resistant roofing. 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 consistently received high ratings in J.D. Power’s study. While it earned the top score, USAA does not qualify for ranking in the study because it only offers products to military and veteran families. 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.
How much is homeowners insurance in Mississippi?
Mississippi is significantly cheaper than neighboring states with an average cost of $1,713 each year for home insurance. Other states are much more expensive, with Alabama averaging $1,917 annually, while Arkansas and Louisiana both hover around $2,300.
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.
Home insurance considerations in Mississippi
Every state has unique factors that may determine certain elements that homeowners are more likely to consider when they purchase insurance.
Common causes of loss in MIssissippi
Mississippi ranks third in the nation for tornadoes. In 2018, 68 tornadoes touched down in the Magnolia State, but thankfully, there were 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.
Home insurance coverages in Mississippi
Most Mississippi homeowners insurance companies offer optional extra coverages that some homeowners find valuable. These add-ons help fill in the gaps that standard policies do not cover.
- 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.
- Flood insurance: Standard policies do not cover flood damage. You can purchase a policy through the National Flood Insurance Program with help from your insurer.
- 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.
- 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.
- 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.
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 does not 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 like 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 pay higher homeowners insurance rates due to the frequency and severity of storms.
Is homeowners insurance required in Mississippi?
No. State law does not require you to purchase home insurance, but if you take out a mortgage to buy a home, the lender will likely require it.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.