Mississippi Insurance Commissioner George Dale has approved a 90 percent rate increase for homeowner policies provided by the Mississippi Windstorm Underwriting Association.
The association, commonly known as the wind pool, had requested a rate increase of almost 400 percent as a result of the devastation caused in August 2005 by Hurricane Katrina. Dale said a rate increase of that size was unacceptable.
“I regret that wind pool policyholders will have to pay any increase in premiums,” Dale said. “However, an increase is necessary in order to maintain the stability of the program. Without the wind pool, many residents would be unable to get any wind coverage due to a number of companies choosing not to write the wind on the coast.”
The Mississippi Windstorm Underwriting Association provides wind and hail insurance for coastal property owners who could not obtain private insurance. The wind pool is funded by assessing all insurance companies that provide property coverage in the state.
The wind pool currently covers about 16,000 homeowners but officials expect more homeowners to seek out the pool as private insurers continue to pull back from the Gulf Coast.
In an effort to reduce the amount of the increase needed by the wind pool, Gov. Haley Barbour in June set aside $50 million from federal grants funds awarded to the state for hurricane recovery.
Topics Pricing Trends Mississippi
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