As homeowner insurance costs soar, MS is offering one way to save. What you need to know

South Mississippi residents anxious for property insurance premium relief are calling the state insurance department about a program that will offer grants to strengthen homes for severe weather, including hurricanes.

The program will offer up to $10,000 each to qualified homeowners, primarily to fortify roofs to standards set by the Insurance Institute for Business & Home Safety, an industry-funded nonprofit. Applications should be available in the fall. However, the Legislature has provided only $5 million to fund the program, far less than states such as Alabama and Louisiana are spending.

Mississippi residents, particularly those on the Coast who face destructive hurricanes, pay some of the highest property insurance premiums in the country. As storms intensify with climate change , insurance-industry experts say stronger construction is the only way property owners will be able to find and afford insurance.

“Mother Nature has changed the game on us in the last decade,” IBHS Chief Engineer Anne Cope said during a webinar earlier this week. “The last four years are the worst four years, particularly when we’re talking about convective storms and wildfires.”

Mississippi is currently ranked No. 5 for highest homeowner insurance premiums by state, with an average annual premium projected at $4,482 for 2024, according to the National Association of Realtors. Florida rates were highest, followed by Louisiana, Oklahoma and Texas.

The Mississippi Insurance Department expects to start the mitigation program after a contract is in place Oct. 1 for a program administrator. The department has advertised for proposals to run the program and expects to select an administrator by Aug. 15. If all goes smoothly, Insurance Commissioner Mike Chaney told the Sun Herald, the program could start as early as September.

Gulf states such as Alabama and Louisiana have already put grant programs in place to meet IBHS standards in the trademarked FORTIFIED program, which also includes guidelines for new construction.

South MS needs stronger building codes

Alabama has been a leader in fortified construction, offering homeowner grants since 2016.

Another boost for Mississippi’s insurance market would be stronger building codes, said Carl Schneider, an independent insurance agent in Alabama who co-founded that state’s fortified home program.

However, both Mississippi and Alabama rank in the bottom third in IBHS’s 2024 assessment of state building codes, enforcement and contractor licensing. Neither state has a statewide building code but Mississippi was named the most improved state for upgrades to licensing requirements for specific building trades.

Coastal Alabama is faring better. Most jurisdictions in Alabama’s two coastal counties, Mobile and Baldwin, follow code-plus standards that adhere to IBHS guidelines for FORTIFIED construction. The insurance industry has taken note . With mandated insurance discounts for fortified construction, Alabama’s coastal insurance market is flourishing compared to Mississippi’s.

“It’s saving consumers money,” Schneider said. “It’s protecting homes and its a way to entice insurers to Alabama and other states.” Still, Alabama has not adopted statewide building codes and ranks No. 8 for highest insurance premiums, projected at $4,281 for 2024 by the National Realtors Association.

Schneider believes Mississippi’s coastal insurance market would improve if political leaders and building officials in the six southernmost counties banded together and pushed for code-plus construction.

While Gulfport follows an older code than Harrison County or Biloxi, the 2015 International Building Code, the mayor is a believer in FORTIFIED construction. His family home directly across from the Mississippi Sound was built after Hurricane Katrina to FORTIFIED Gold standards, the highest level of protection for new construction.

Gulfport Mayor Billy Hewes, whose family owns insurance and real estate firms, said building to the Gold standard added 20-30% to construction costs, but he’s saving thousands a year in insurance premiums. There’s another benefit, too.

“There’s a chance that we may not have to move out of our home in a major storm, or we’ll get back into it that much more quickly,” Hewes said.

More than one study shows he’s right: FORTIFIED homes have withstood hurricanes with little to no damage.

How homeowners qualify for MS program

FORTIFIED construction elements start with the roof because that’s where the most potential for damage exists from high winds and wind-driven rain. An inch of rain would fill nine bathtubs of water, an IBHS engineer said during the insurance-sponsored webinar this week.

Mississippi’s mitigation program, called Strengthen Mississippi Homes, follows IBHS guidelines and will required FORTIFIED roofs first. If a homeowner already has a FORTIFIED roof, they may be eligible for storm shutters or other retrofits for structure openings such as doors.

Homeowners must cover costs above $10,000. The owners of single-family homes serving as their primary residence qualify for the program, according to an insurance department Q&A . Condominiums and mobile homes do not qualify. The homeowner is required to pay for an inspection by an evaluator certified in FORTIFIED construction to determine what retrofits are needed.

Other qualifications applicants must meet:

• The home must be in good repair.
• A homeowner’s insurance policy must be in force, along with a flood policy if the house is in a flood zone.
• Proof of an insurance policy with wind coverage must be provided when work is completed.

Homeowners and elected officials are already lining up for the program.

“This is a big step in the right direction,” said Pass Christian Mayor Jimmy Rafferty, who has talked with insurance department officials about the program. “The bottom line is, we have people that are in need.”