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412 Hwy 90, Suite 6 Bay St Louis, MS 39520  |  2505 Pass Road Biloxi, MS 39531

Insurance Q&A 

Insurance Q&A 


One of the biggest variables that drives up coastal property insurance are the threats of the perils of wind and flood – you name it, the coast gets it from periodic tropic storms and tornados. Winds can damage the roof and rising water can damage the home. Insurance rates are build are actuary tables that consider the repair costs and the probabilities of a damaging event, and the data is used to estimate insurance premiums. Another consideration is the global reinsurance market with broader impact from worldwide events. Insurance companies purchase insurance based on the probability of catastrophic losses to hedge their exposure in the event of a very large loss. If the reinsurance is less costly, the property insurance companies can reduce the cost of their policies to the consumers. Another driver is the number of competitors in the area willing to write coverage in the region. Competition in the marketplace reduces costs to the consumer. And finally, the expected cost of repairs plays a significant role in the pricing algorithm. Higher building and labor costs drive up the cost of insurance.

Mitigation helps reduce the cost of insurance and prevents significant damage in a storm, such as a Fortified roof and impact glass in windows.


Standard home insurance is designed to protect your home and belongings and your liability exposure. The policies pay to repair or rebuild your home if it is damaged by fire, lightning, hail, vandalism, theft, and other perils. On the Coast, many polices will exclude wind and flood, so separate coverage will be required, as these are very real possibilities in the area.

Optional coverages may be available to include protection for detached structures such as garages, sheds, workshops, gazebos, etc.

Read your policy carefully to be sure you understand the provisions. Maintenance, rot, or deterioration of the structure is not covered. Mold and water backup is an optional coverage for additional premium. There is no coverage for damage from termites or rodents.


For a homeowner , we recommend reviewing the following as a Coverage Checklist:
✅ Homeowners policy (HO-3 or equivalent)
✅ Wind coverage included or separate wind policy
✅ Flood insurance
✅ Replacement cost coverage for the dwelling
✅ Personal property limits
✅ Hurricane deductible amount
✅ Liability limits (at least $300,000 or higher)
✅ Umbrella liability coverage for higher-net-worth households


Proactive home maintenance is critical for reducing the risk of an insurance claim. There are many ways you can easily avoid the inconvenience of home damage and the disruption to your life from having to make major repairs. Avoiding claims also keeps your insurance cost down.


• Test your smoke alarms each month and replace the batteries twice per year. An easy way to remember is to use the daylight savings time date as your reminder for changing the batteries.
• Clean the lint filter on your dryer regularly.
• Avoid placing any flammable items near your stove.


• Clear your gutters at least annually to prevent soffit and facia damage near your roof line.
• Check water line hoses for cracks.
• Install a water leak detector for an early alert on a potential problem.


• Install security cameras and an alarm system
• Smart timers and motion lights keep areas better lit for visibility
• Keep your windows, doors, and autos locked.
• Remove valuable items from sight on the ground floor
• Avoid leaving things like bikes in the front yard as an easy target


• Following any sever weather, notice if there are any shingles blown off, and replace the missing shingles urgently.
• Trim back any tree limbs at least 3 feet it they are touching or overhanging your roof or structure
• Keep gutters and downspouts cleared of debris. Consider adding gutter guards that prevent debris accumulation.
• Upgrade to a Fortified Roof that strengthens your roof and better protects your home.


A broken water pipe that causes water inside of a home would be a covered peril under home insurance.

Rising water overflowing onto normally dry land following a heavy rain or coastal storm surge is considered to be a flood which is not covered by a regular home insurance policy. A separate flood insurance policy is likely needed.


Anywhere it rains, it can flood. Flood insurance is recommended for all coastal areas and for any properties in close proximity to a creek or river or tidal water. The National Flood Insurance Program and many private insurance markets offer insurance policies for flood.


Zone X is considered a preferred flood zone with minimal probability of flooding within a 100 year time frame. Please note that even a minimal probability means that there is a chance for flood, so flood insurance is recommended and inexpensive for your protection. More than 20% of flood claims occur outside high-risk flood zones.


Zone A is a high hazard area that is in close proximity to a pond, stream, river, or tidal water. Flood insurance is recommended in these areas and is required if you have a mortgage or loan on your property.


Zone V is also known as a Velocity zone and is a high hazard area in a coatal area and likely subject to storm waves and surge. Flood insurance is recommended in these areas and is required if you have a mortgage or loan on your property.


Flood insurance with NFIP (National Flood Insurance Program) is limited to $250,000 which is typically not enough to cover the cost of rebuilding a home. The policy pays for replacement cost, meaning it will pay up to $250,000 to repair or replace the home following a flood. For a home with over $250,000 replacement cost, there are excess flood options through the private market. You should have sufficient insurance coverage to replace your home in the event of a total loss.


"Flood damage is covered by homeowners insurance." No, It isn't.

According to FEMA, just 4 inches of flood water will result in repair cost of $25,000-$40,000 for structural and damage to baseboards, lower drywall and ruined flooding. The size of the flooded area is a major factor and the type of flooding and contamination can be even more costly to clean up. If you do have a flood, the faster you can get the water removed and remediated, the better, because long term effects such as mold growth will further complicate recovering from a flood.


• hurricane deductible – the hurricane deductible is invoked if the sustained wind speed from a storm exceeds 74 mph on the Saffir-Simpson Scale. This scale estimates potential property damage due to the hurricane winds. Category 1 (74-95 mph) storms will produce some damage, and if the wind increases to over 157 mph it is classified as a Category 5 hurricane with catastrophic damage expected.

• named storm deductible – the named storm deductible is used if there is an organized weather system with sustained winds over 39 mph. The National Hurricane Center monitors and makes the determination.

• windstorm deductible – the windstorm deductible is the broadest form of deductible and is used for any wind event including thunderstorms, tornados, tropical storms and/or hurricanes.


Each insurance policy is different and you need to become familiar with the type of deductible your policy uses so you are not surprised at the time of a claim.

AOP deductible (All Other Perils) – this is the deductible applied to every claim except for wind. Example: if you have a $1000 AOP deductible and you have a kitchen fire, you would be required to pay the first $1000 before the insurance company would start paying for repairs.

The Hurricane deductible is usually a % of coverage A and is only used if a storm has reached hurricane intensity. Example: a tropical storm strikes the coast and just before landfall it was classified as a Category 1 Hurricane. The wind deductible of 2% would be invoked. If your Coverage A – Dwelling was $200,000 the 2% deductible would mean that you have a $4,000 deductible. You would be required to pay the first $4000 in repairs before the insurance company would start paying for repairs.

A Named Storm deductible works the same way as the Hurricane deductible except it would be applied if the storm is given a name by the National Hurricane Center.

A Wind Deductible is becoming the most common type of deductible being used and would be applied for any wind event including thunderstorms and tornados and named storms.

Many insurance companies require higher deductibles such as 3% or 5% for an older roof over 10-15 years old. Many insurance companies are imposing roof limits in the policy contracts. The best recommendation for homeowners is to maintain your roof, and upgrade to a Fortified roof if your roof is over 10 yr old. The insurance companies are providing policy discounts as a reward for the better home protection.


If you are starting a new business or expanding, it is good idea to review your risks and exposures. Some risks, such as theft, you can address with a good security system, but acts of nature may be out of your control and are best covered with insurance.

Act of Nature Exposures

Property Insurance provides building and business personal property protection. This includes office equipment, computers, inventory or tools and pays claims for fire, vandalism, theft, smoke damage etc. You may also want to consider business interruption/loss of earnings insurance coverage to protect your earnings if the business is unable to operate.

Commercial Auto Insurance protects a company’s vehicles and any vehicles that carry employees, products or equipment.

Human Exposures:

General Liability Insurance provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.

Worker's Compensation coverage provides wage replacement and medical benefits payments to employees who are injured on the job.

Professional Liability Insurance offers defense and damages for failure to or improperly render professional services. This protection is critical for any professionals such as lawyers, accountants, consultants, agents, and any profession providing services.

Directors and Officers Insurance covers the directors and officers of a company against their actions that may affect the profitability or operations of the company.

Umbrella Insurance extends an already existing insurance policy and covers beyond the regular policies.

Employee Benefits are ancillary coverages that provide benefits for your working staff and their families. There are many options: Health, dental, vision, cancer, accident, disability, and life insurance for your team.

External Exposures:

Data Breach Coverage/Cyber Liability provides protection in the event of data loss of sensitive or non-public information and all of the compliance requirements and legal action necessary following a breach. With all of the spam and phishing schemes prevalent today, this coverage protects you and your customers.

A less costly insurance option when you are starting out may be a Business Owner's Policy (BOP). Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance- and you can tailor it to your specific needs.

Be aware that coverage for your business will not protect your personal use, and your personal policies will not protect business use, so consult your agent to be sure you are properly protected.