Mississippi Insurance Commissioner, Mike Chaney, approved an average 11 percent rate reduction request filed by the Mississippi Windstorm Underwriting Association.
The reductions will vary according to geographic zones and are expected to be in effect after June 1. The rate reductions will apply to new policies and policy renewals, but will not apply to policies following a mid-term cancellation.
Chaney said any reconstruction of 50 percent or more or any new construction must be built in adherence to the International Residential Building Codes or the International Commercial Building Codes in order to qualify for wind pool coverage.
The Mississippi wind pool, was established by the state Legislature in 1987 for to provide wind and hail insurance policies for high risk properties in the six Mississippi coastal counties that private insurers will not insure.
The pool is funded through customer premiums. Losses in the Pool are paid by a combination of assets on hand, reinsurance and if necessary, assessments against property policies written by private insurance companies throughout the state.
Source: Mississippi Insurance Department
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