Best Homeowners Insurance in Mississippi: Top 5 Insurance Companies to Protect Your Investment

The Magnolia State is a beautiful location, and as a property manager or landlord, it's ideal for your real estate investment portfolio. However, there's more to it than enjoying the weather and all that Mississippi offers. You also have to think about the risks associated with renting property.

It's typically wise to protect your investment with homeowners insurance in Mississippi. Many times, mortgage lenders require this, so it's important to check coverage options from different insurance agents and get a homeowners policy that meets your needs.

There are many providers in Mississippi. Therefore, it's challenging to know which one is best. You'll look at many factors, such as reasonable prices and coverage options, and this guide will walk you through it all.

Overall, you'll learn tips for choosing homeowners insurance and the unique hazards that Mississippi properties face. Let's get started!

Understanding Mississippi Homeowners Insurance

Mississippi homeowners insurance is the safety net that protects you from unexpected and unforeseen challenges. Whether it's roof damage from a storm or a burst water pipe causing problems, you'll be ready for anything.

As a landlord, you want all the protection you can get, and a homeowners policy is the first step!

Average Home Insurance Costs in Mississippi

According to Quadrant Information Services, the national average for home insurance is about $1,428 for $250,000 of dwelling coverage. However, the same coverage amount in Mississippi is $1,900.

Why is Mississippi homeowners insurance so much more expensive than the national average? It could be from the frequent tornadoes the state sees. In fact, it's ranked first in number of tornadoes per year. Likewise, it could experience damage from hurricanes and tropical storms.

Just remember that your rate will likely be different because the price is based on your insurance history, credit scores, and the home's condition and age.

Homeowners Insurance vs. Landlord Insurance

You must understand the difference between homeowners and landlord insurance as a landlord or property manager.

Typically, homeowners insurance policies focus on the house and personal belongings. That might not be enough when you're renting the property to others.

However, landlord insurance is specialty coverage that focuses on landlords as property owners. It's often more extensive and encompasses your property, loss of rental income, and extra liability from tenant accidents and incidents.

Every landlord won't need home insurance in the traditional sense. In fact, it might be wise to talk to your insurance agent to ensure it comes with appropriate terms. Otherwise, you could see more denied claims and have to pay out of pocket.

When will you need homeowners insurance? Here are some scenarios landlords might face:

• Transition Period - When you live in the property yourself and decide to turn it into a rental, you might require home insurance. While you're working on making the space habitable for a tenant, you must protect it!
• Vacant Property - If you have a vacant property that you normally rent to tenants, you might get homeowners insurance to protect your personal belongings and the property. Make sure you tell the insurance agent about your vacancy because an extended one could affect coverage.
• Home Sharing - Home sharing is where you rent a portion of the primary residence to a tenant. The most common option is to rent a bedroom. Some homeowners insurance policies offer this specific coverage, but it varies based on the supplier. Therefore, you'll have to focus on the specifics of each provider. Likewise, you may want additional coverage for liability to help with accidents on the property. It's also wise to remember that traditional home insurance doesn't cover loss of rental income.
• Temporary Absence - Let's say you're planning to travel for work or a vacation. You'll be gone for a while and wish to rent the property for the short term. Homeowners insurance could be beneficial. Again, though, you should talk to the insurer to ensure you've got adequate coverage.

How to Choose a Mississippi Homeowners Insurance Company

Is homeowners insurance required in Mississippi? State laws say it isn't, but you might find a lender who wants you to have it. Plus, it's wise to get it anyway to protect yourself and offer financial stability in the face of significant damage. Let's learn how to select a brand:

Unique Policy Needs for Mississippi Homeowners Insurance

It's crucial to ensure your homeowners insurance policy covers everything on the property. Plus, you'll want to consider add-on coverages, which are called riders or endorsements. These can include:

Earthquake and Flood Insurance Through the National Flood Insurance Program (or Private Insurers)

Flood insurance will cover all types of flood damage. Though a homeowners policy will generally cover some water-related issues, such as water backup or a burst pipe, flooding isn't covered.

Did you know that about 1 inch of floodwater could lead to $25,000 in damages? You want to protect yourself from flood damage at all costs!

Likewise, earthquake coverage is generally not included in traditional home policies, though you can add it. This means you'll have extra protection against earthquake-related damages. If the problem occurred because of an earthquake, your regular homeowners policy wouldn't help you.

Identity Theft Protection

Identity theft protection is becoming common for home insurance companies, and it might be included in your basic coverage. It will protect you financially when someone fraudulently uses your identity or credit cards. Typically, it pays for expenses to restore your credit or credit monitoring.

Personal Property Replacement Cost Coverage

Most insurance coverage gives you the depreciated value of your belongings after a covered loss. For example, your couch is 10 years old now, so it's worth $100; that's the amount you receive. However, it's not enough for a new item, so you get replacement cost coverage to pay the amount comparable to today's market values.

Other Factors to Consider When Assessing Mississippi Homeowners Insurance Companies

Here is a step-by-step guide to help you choose between the many homeowners insurance companies available:

• Your Needs - Determine your property's value, the coverage amount you need, and unique location risks. Then, figure out if you require additional coverage.
• Research Multiple Providers - Explore each company's website, read reviews from customers, and learn about the brand's reputation.
• Compare Options - Make sure the policy covers your needs or get additional endorsements as necessary.
• Financial Strength - Look at ratings from independent sources, such as A.M. Best, which will offer insights into the financial strength of the company.
• Focus on Customer Service, Discounts, and Prices - Though you shouldn't choose insurance based solely on price, you want something comparable across the board. Likewise, check to make sure the customer service department will help you file a claim and answer questions about discounts and other things.
• Review Your Policy - Don't assume anything with your home policy. Read through it carefully and consider asking your lawyer to help you pinpoint inaccuracies or problems.

Best Cheap Home Insurance Companies in Mississippi

What companies offer the best homeowners insurance? Here are a few insurers to consider:

1. Farmers Insurance

Farmers is an excellent home insurance company that offers many options for homeowners insurance policies and includes other products, such as condo, renters, car, life, pet, and home insurance products. It serves 10 million households right now.

Coverage and Features

The standard homeowners insurance policy at Farmers includes:

• Dwelling Coverage - Repairs or rebuilds the home after a covered loss.
• Other Structures - Rebuilds and repairs other structures on the property, including fences and detached garages.
• Medical Payments - Pays others who were accidentally injured on the property.
• Liability Coverage - Pays legal expenses after someone is injured on the property or their items were damaged if you were at fault.
• Personal Property Coverage - Repairs and replaces furniture, clothing, appliances, and other items.
• Additional Living Expenses Coverage - Pays for temporary food and lodging while your home is repaired or rebuilt after a claim (loss of use).

You may find that you require additional coverage, and the options include:

• Earthquake and flood insurance
• Personal articles floater, which offers more protection for any valuable items
• Building ordinance/law coverage, which updates the home based on current building codes
• Identity theft protection of varying amounts
• Contents replacement cost coverage, which provides additional reimbursement for TVs and appliances at the current price
• Umbrella coverage, which supplements liability coverage

Discounts

It's easy to save money with Farmers Insurance. Here are the discounts that might be available to you:

• Rent-to-own discount for when you have renters insurance with Farmers for one year or longer, buy a house, and switch policies
• Green certifications discount when your home is EPA-, LEED-, or Energy-star-certified
• Protective device discounts, such as installing a burglar alarm system, sprinkler, or something else
• Good payer discount
• Electronic funds transfer discount
• Claim-free discount after three years
• Multiline discount (bundling discount for auto policies and homeowners insurance)

2. Amica

Amica is an excellent choice for a home insurance company. It was founded in 1907 and is headquartered in Long Island. This brand offers many products, such as renters, pet, life, small business, home, and auto insurance. You'll also find retirement annuities.

Coverage and Features

There are two options for coverage. The Standard Choice offers basic coverage for your:

• Personal property
• Liability
• Dwelling and other structures
• Loss of use

You also have the Platinum Choice option, which customizes homeowners insurance policies based on your needs. These include:

• Extended coverage limits for valuable items
• Personal property replacement
• Medical payments and liability coverage
• Dwelling replacement cost
• Business property coverage
• Credit card coverage
• Water backup and sump overflow coverage
• Special computer coverage

Discounts

It's easy to save money when you choose Amica. Here are the discounts available:

• Home credits for new and remodeled houses
• Discounts for automatic detection devices
• Alarm system discounts
• Multiline discounts
• Loyalty discounts after being with the firm for two years
• Autopay discounts
• E-discounts for going paperless
• Claim-free discounts for not having a claim within the last three years

3. Liberty Mutual

Liberty Mutual is another great home insurance company that started in 1912 with workers' compensation claims. Now, it's grown to include various investment/insurance products. In fact, it's now available in 29 countries and has over 45,000 employees!

Coverage and Features

With home insurance from Liberty Mutual, you'll enjoy these coverages:

• Additional living expenses (ALE)
• Dwelling and other structures
• Personal property
• Guest medical expenses and liability protection

There are additional options available, such as:

• Earthquake and flood insurance
• Hurricane coverage
• Inflation protection, which adjusts coverage limits as needed
• Umbrella coverage, which offers extra liability protection
• Blanket jewelry coverage, which requires no up-front appraisal
• Replacement cost for belongings
• Personal property coverage
• Identity fraud coverage
• Sump pump and water backup coverage

Discounts

When you choose this company, it's wise to ask about discounts, such as:

• Paperless policy discount
• Insured-to-value discount, giving you a full replacement cost instead of current market values
• Multipolicy discounts
• New roof discount
• Early shopper discount
• Preferred payment discount
• Claims-free discount
• Renovated/new home discount
• Newly purchased home discount
• Safe homeowner program

4. Nationwide

If you need home insurance in Mississippi, Nationwide could be a top provider. It started in 1926 and now offers many products, such as dental, pet, renters, and home insurance. Likewise, there are various investment and retirement services available.

Coverage and Features

The standard home insurance policy here offers these protections and coverages:

• Medical payments
• Ordinance and law insurance to get your home up to building codes
• Personal liability
• Dwelling and other structures
• Personal property
• Credit card insurance
• Loss of use

There are additional coverages available, such as:

• Flood and earthquake insurance
• Valuables Plus, which appraises expensive items
• Water backup
• Dwelling replacement cost
• Identity theft protection
• Brand new belongings, which moves to replacement cost instead of actual cash value with depreciation
• Better roof (upgraded materials) after a covered loss

Discounts

When you work with Nationwide, you'll have these discounts available, but remember that they might not all apply:

• Multipolicy discount of up to 20 percent (bundling discount)
• Protective devices discount
• Gated community discount
• Smart home discount for the Notion Smart Home System
• Prior insurance
• New home purchase
• Roof rating
• Home renovation
• Claims-free discount

5. State Farm

You need a home insurance company that will protect your personal possessions, and State Farm is an excellent choice. It offers many products, such as personal articles, ranch, farm, manufactured home, rental property, condo, renters, and home insurance. Plus, you can get health, life, and liability insurance from this brand.

Coverage and Features

The traditional home insurance offers these coverages:

• Dwelling and other structures
• Medical payments
• Personal property
• Personal liability
• Additional living expenses (ALE)

It's also possible to customize your plan with these options:

• Cyber event, fraud loss, and identity restoration coverage
• Ordinance or law coverage
• Valuable possessions
• Inflation guard

Discounts

Whereas other insurers offer tons of discounts, State Farm's is a little less. However, these options can save you money:

• Discount for updating the house's utilities
• Discount for an impact-resistant roof
• Multipolicy discount
• Claims-free discount
• Home security discount
• Automatic sprinkler discount

Other Notable Mississippi Home Insurance Companies

You need the best home insurance in Mississippi, and that means researching many brands. Though the top five are found above, they aren't the only ones available. Here are a few others to consider:

• Progressive
• Travelers
• Farm Bureau
• USAA (for military families)
• Allstate
• Chubb

Conclusion

Everyone wants to protect their homes from damage, but as a landlord or property manager, you have to take it a step further. Choosing the best homeowners insurance in Mississippi is crucial after you've determined it's necessary.

Assess the risks of not having it, explore the options found here and through your own research, and find reliable providers to protect your investment!