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The Best Cheap Mississippi Homeowners Insurance for 2024

Updated
David Chang, ChFC®, CLU®
By: David Chang, ChFC®, CLU®

Our Insurance Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

A homeowners insurance policy helps provide a financial safety net for damage or loss caused by events such as storms, fires, or theft. To help homeowners in Mississippi, our experts researched the best homeowners insurance companies in Mississippi. Read on to learn tips to help homeowners find the best value for the best price.

  • Cheapest overall for Mississippi: Allstate
  • Cheapest for new home construction: Allstate
  • Cheapest for older homes: Allstate
  • Cheapest when you’ve made a claim: Allstate

Cheapest overall for Mississippi

The cheapest homeowners insurance policies in Mississippi are sold by well-known national brands and regional insurers. Allstate is the cheapest overall, with premiums about half of the state average.

Allstate

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Best for discounts and fully customizable coverageAllstate
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Here are the top three homeowners insurance companies in Mississippi by price:

  • Allstate, at an average annual rate of $1,383
  • USAA, at $1,960
  • Southern Farm Bureau, at $2,047

Cheapest for new home construction

Homeowners insurance for new homes is typically the most inexpensive, because new homes are less likely to have issues that older homes have. They are built with newer materials and require compliance with stricter safety regulations. As a result, insurance companies aren't quite as worried about things going wrong. Here are the cheapest insurers for new homes:

  • Allstate, at an average annual rate of $760
  • USAA, at $1,089
  • Metropolitan, at $1,195

Cheapest for older homes

Homeowners insurance for older homes is more expensive than new homes, due to wear and tear. They are more likely to have plumbing and electrical issues, as well as deteriorating roofs, and that's especially true for homes built 50 or more years ago. The top three companies for insuring old Mississippi homes cheaply are:

  • Allstate at an average annual rate of $1,405
  • USAA at $1,906
  • Metropolitan at $2,087

Cheapest when you've made a claim

Homeowners insurance pays for losses and damage to property if something unexpected like a fire or burglary occurs. When someone makes a claim, however, their insurance rates may rise for a time. The cheapest coverage for people who have previously made a claim is available through:

  • Allstate, at an average annual rate of $1,581
  • USAA, at $1,946
  • Southern Farm Bureau, at $2,020

Average home insurance cost in Mississippi compared to the national average

The average annual cost for Mississippi home insurance is $3,045, about 76% higher than the national average $1,725. Homeowners insurance in Mississippi is the third highest in the nation, behind Nebraska ($4,043) and Oklahoma ($3,883).

The reason homeowners insurance in Mississippi is so high is the frequency and severity of storms in the state. According to the Insurance Information Institute, 102,596 single-family residences in Mississippi are at risk of category 5 hurricane damage. States along the Gulf Coast typically have higher homeowners insurance than inland states.

Average Rate Category Mississippi National Average
Overall $3,045 $1,725
New home construction $1,518 $943
Older homes $3,148 $1,658
When making a claim $3,133 $1,803
Data source: Quadrant data.

Mississippi homeowners insurance overview

Mississippi has a competitive homeowners insurance market. There are many national, regional, and local companies offering a range of plans. When shopping for home insurance, homeowners should get premium quotations to compare companies' rates. The key is finding the best value based on the needs of a homeowner. Here are some other factors to consider.

Types of homeowners coverage

There are six types of policies specifically designed to cover traditional brick-and-mortar homes, from basic policies to policies offering more features. The types of homeowners coverage are dwelling, other structures, personal property, loss of use, personal liability, and medical payments.

The best home insurance companies offer a wide range of coverage types. Homeowners should look for coverage based on their needs, what they want covered, and their budgets. Common gaps in coverage for those living in Mississippi may be a sump pump (a pump used to remove water in a sump basin, usually in a basement), sheds and unattached enclosures, trampolines, pools, jewelry, artwork, and a home office or business.

Level of coverage

Standard homeowners policies provide basic coverage for disasters, including damaging fire, lightning, or hail. Those who live in areas prone to flood or at risk of earthquakes usually need coverage for those potential disasters as well. Homeowners should consider a policy with high enough limits to cover the cost of rebuilding a new home. The adage, "You get what you pay for" often applies to homeowners insurance. Creating a home inventory can help determine if there is enough coverage for what you own.

Amount of deductible

A deductible is an amount the homeowner must pay out of pocket towards a claim before the insurance company pays the remainder. The deductible amount a homeowner chooses impacts premiums. Raising the deductible can lower the premium amount. The typical deductible is $1,000, so in comparison, a homeowner's premium would be higher for a $500 deductible, and lower for a $2,000 deductible.

Potential discounts

Many insurance companies offer home insurance discounts. One common discount is bundling auto, home, and other types of insurance. Before choosing a policy, take into account the discounts you may qualify for. Homeowners may get greater value at a lower cost by taking advantage of all the discounts available.

What are the most common homeowners insurance claims in Mississippi?

Every region is known for a different set of natural disasters. Due to the state's location along the Gulf Coast, Mississippi homeowners see more severe storms and flooding than people in other parts of the country. The most common homeowners insurance claims are similar throughout the country. Here are some of the most common homeowners insurance claims in The Magnolia State.

Wind and hail

Severe storms are common in Mississippi. Hurricanes, tornadoes, and winds are covered under this category. Per the Insurance Information Institute, claims under this category made up 34.3% of all homeowners claims in the U.S. in 2019, the largest percentage of claims.

Water damage and freezing

The second-highest category is property damage from plumbing issues and storms. Frozen pipes that burst, and water damage from storms made up 29.4% of claims. Water damage covered by homeowners insurance also typically includes water damage after a fire, roof leaks, and ice dams. Insurance companies generally do not cover water damage due to lack of maintenance, negligence, or intentional damage.

Fire and lightning damage

Fire and lightning incidents made up 25.1% of claims in 2019 -- however, they were the most expensive, with an average cost of $78,838 per claim. Most policies protect the home and its content due to a fire. Typical policies cover the dwelling (the home itself), detached structures (sheds, detached garages), and personal property in the home. Some policies cover only a percentage of personal property losses, so it is important to have an accurate inventory of all belongings.

Homeowners insurance coverage options and discounts in Mississippi

One of the most common mistakes homeowners make is failing to review coverage each year. It is important to make sure homeowners insurance coverage is sufficient. Homeowners should consider inflation, which increases the value of your home, any improvements made to the home, or significant personal property a homeowner may acquire.

It's also a good idea to compare prices from other companies every couple of years to find the best homeowners insurance in Mississippi. Here are the coverage options to compare, and common discounts to look for.

Coverage options

The type of homeowner's insurance coverage options most commonly offered in Mississippi are HO-3 (special form), HO-4 (renters insurance), HO-5 (comprehensive), HO-6 (townhouse/condominium), and HO-8 (modified coverage form), as outlined below.

HO-1: This is known as "basic form," and is the most basic type of policy. HO-1 covers home and personal belongings at actual cash value against typical perils. HO-1 coverage is limited, so many insurance companies no longer offer this type of policy.

HO-2: This is known as "broad form," and while this policy expands on HO-1 by offering coverage against more than basic perils, it is still limited. It includes protection against things like freezing, electrical surges, volcanic eruption, and damage due to the weight of ice, snow, or sleet.

HO-3: This is known as a "special form," and is one of the most commonly purchased forms of coverage. It covers a homeowner against a wide range of risks. HO-3 policies pay actual cash value to replace damaged or lost property. They take into account depreciation, and pay current market value.

HO-4: This is a standard renters insurance policy, and does not apply to homeowners.

HO-5: This is known as a "comprehensive form," and unlike an HO-3 policy, it covers actual replacement value, and automatically includes coverage not available with HO-3. It is much broader, and as the name suggests, more comprehensive than HO-3.

HO-6: This is known as "walls-in" coverage, and is a condo insurance policy. It also covers the condo owner's personal belongings.

HO-7: This is a mobile home insurance policy. It covers a mobile home and personal property.

HO-8: This type of coverage is for older homes, historic homes, or homes that are architecturally important.

Discount options

Each insurance company offers its own discounts. These discounts can help people find the best homeowners insurance in Mississippi. Here are the most common.

  • New home construction
  • Home and auto bundle
  • Advance pay
  • Home upgrades
  • Home security system
  • Company loyalty
  • Professional affiliation
  • Non-smoker
  • Homeowners association (HOA) membership

5 cheapest cities in Mississippi for homeowners insurance

Many factors affect the cost of home insurance. Where someone lives and how much it would cost to rebuild a home are the biggest factors. Other factors include:

  • Amount of coverage
  • A home's age and condition
  • Home security and safety features
  • The homeowner's credit history
  • Including additional types of coverage
  • Amount of deductible
  • Choice of insurance provider

Here are the five cheapest cities in Mississippi for homeowners insurance:

City Name Average Home Insurance Rate
Starkville $2,472
Marion $2,532
Saltillo $2,534
Bailey $2,572
Mooreville $2,587
Data source: Quadrant data.

5 most expensive cities in Mississippi for homeowners insurance

Here are the five most expensive cities in Mississippi for homeowners insurance. Not surprisingly, these cities are either on the Gulf Coast or quite close to it.

City Name Average Home Insurance Rate
Lakeshore $4,911
Pascagoula $4,769
Ocean Springs $4,448
Gautier $4,441
Hurley $4,361
Data source: Quadrant data.

Most people do not think about homeowners insurance until they experience a loss, and this insurance does protect homeowners from significant financial loss. The best homeowners insurance in Mississippi provides comprehensive coverage at the best value. It is important to look for cheap homeowners insurance in Mississippi to not only save money, but get necessary protection. Lastly, the right policy can help homeowners with peace of mind, knowing they have enough coverage to protect one of their most valuable assets.

Our Insurance Expert