Tuesday, 31 August 2010
Mississippi Gulf Coast Residents Still Paying for Katrina
Hurricane Katrina caused widespread devastation back in 2005 and cost billions of dollars to clean up. However, it seems many residents on the Mississippi coast are still paying for the destruction five years later as their homeowners insurance premiums have jumped through the roof. It's been reported by New Orleans News that some homeowners on the Gulf Coast have seen their insurance costs skyrocket up to 200 and 300 percent.
Some relief may be in sight as Mike Chaney, the Mississippi Insurance Commissioner, said while prices are still pretty high, they are starting to level out. He stated it was inevitable insurance rates would rise due to the cost of rebuilding. Also, residents have been helped out by state-funded coverage named the Wind Pool.
Before the hurricane hit, coastal homeowners were paying $952 on average for a years worth of insurance on a $100,000 policy. But those who reside between the beach and Interstate 10 are now paying an average of $1,869 a year, which is close to an increase of 100 percent. In the Jackson, Mississippi area, $1,050 is the average for a year.
State insurance rates are still a sensitive topic with many residents as they feel they are paying some of the highest premiums around. But over at the State Capitol, the lawmakers state they have tried to help ease the burden for Mississippians should a catastrophe strike. A Policy Holder's Bill of Rights was passed by lawmakers, which states insurance companies have to inform customers about all policy exclusions — including wind and flood damage.
Rates have risen in Mississippi but not as much as in Florida, where tighter regulation was in place. There could be some light at the end of the tunnel though as 105 new insurance providers have started offering policies since Katrina, providing residents with more options.
