MS homeowners least likely to have disaster insurance

JACKSON, Miss. (WJTV) – For homeowners facing natural disasters, Mississippians are least likely to have disaster insurance. 

According to a report from LendingTree.com, Mississippi has the largest share of homeowners without flood, fire, or hazard insurance. At 22.2%, it surpasses other disaster-prone states like Louisiana, Florida and California. Mississippi has 76% more homeowners without disaster insurance than the national average (12.6%). Of the states with the highest rates of uninsured property owners, seven are in the South. Two of the states most at risk for flooding — Mississippi and Louisiana — have the highest share of properties without disaster insurance nationally. 

The information in the LendingTree analysis looks at responses from the U.S. Census Bureau 2022 American Community Survey. It asked respondents about “fire, hazard and flood insurance.” Below are overviews of the policies.

• Fire insurance:  Provides financial coverage if your house or belongings are damaged or destroyed during a fire (including wildfires). In general, this type of coverage is included in a standard homeowners policy.
• Hazard insurance: Part of a typical homeowners insurance policy that covers the structure of your home if you experience damage or loss from perils such as theft, fire, smoke, hailstorms, windstorms, explosions, lightning and more.
• Flood insurance: Protects you if your home or belongings are damaged due to flooding. Renters can also purchase flood insurance (renters insurance typically does not include flood coverage). If you have a mortgage on your home and live in a flood-prone area, your lender may require you to purchase separate flood insurance on top of standard homeowners coverage.

Cost is a common factor in why people choose to go uninsured or underinsured. Mississippi’s median household income -$52,719 in 2022- is the lowest in the United States. In the District of Columbia, where the vast majority of homeowners (91.2%) have disaster insurance, the median household income in 2022 was nearly double that of Mississippi, at $101,027. This is a stark contrast to the states with lower median incomes where the percentage of uninsured homeowners is significantly higher.

In terms of other types of insurance, Mississippi has the second-highest rate of uninsured motorists in the country. In the Magnolia State, 24%, or nearly one in four drivers, lack even minimum liability insurance.