News - Insurance

Thursday, Nov. 05, 2009

O.S. insurance survey proves insightful

OCEAN SPRINGS — Hurricane Katrina is being felt years later along the Coast from homeowners insurance rates doubling, tripling and worse.

In an effort to combat ever-increasing insurance rates city leaders are trying to raise awareness about current insurance costs and the discounts that are available to homeowners, businesses and renters.

Ocean Springs recently mailed out more than 8,000 voluntary insurance surveys to residents to determine the remaining needs for recovery assistance and their responses to the current insurance crisis.

In a press conference Thursday Mayor Connie Moran presented the results of the survey, announcing an overwhelming response of personal letters to the city.

Nearly 1,000 residents replied with about 100 letters attached pleading for a solution so they will not have to move from their homes.

Leaders said the most profound statistic was that residents saw an average insurance cost increase of 111 percent since Katrina.

The results showed an average cost of homeowner insurance was $1,800 a year and has steadily increased to some $3,800 four years after Katrina.

Some residents said their insurance has skyrocketed to $9,000 a year.

“This survey is so telling,” said Moran. “These personal letters and surveys are telling us that people cannot afford to live in their homes because of the increased insurance costs. Some are even making choices between paying their insurance or buying their prescriptions.”

Carole Gunn, a 65-year-old, said the insurance companies are making off like bandits.

“My insurance has gone up more than $800 a year and that is not including flood,” said Gunn. “What really bugs me is that comes with a $5,000 deductible. We would need a category 7 hurricane here for me to have that kind of damage and more to collect anything. The whole insurance system is insane.”

Gunn also said she is thinking about going to the state flood insurance program and not worrying about wind and hail like most people she knows in the area.

“This is about educating the residents and also educating the insurance companies when it comes to some of the discounts available,” said Moran. “I believe that this insurance crisis is something that is going to have to be settled at the federal level.”

City leaders said since the city received a high rating for building codes by the state in July some residents are eligible for insurance discounts.

Building official Terry Agar said residents can download a form and follow steps to receive mitigation credits for existing homes and businesses.

Roof wall connections, bracing end gables, specific roof surfacing, tree clearing, and other structure adjustments could result in credits, which equals a lower insurance premium.

Ocean Springs has a strict tree ordinance so clearing protected trees could be an obstacle and would have to be approved by the tree committee.

To download the Mississippi Windstorm Underwriting Association form visit www.msplans.com/mwua or call (601) 981-2915. The mayor’s office will assist homeowners with the application process by calling (228) 875-2209.

Ana Maria Rosato from Rep. Gene Taylor’s office was also at the press conference and said residents can visit taylor.house.gov/insurancereform for more information.

“Congressman Taylor is in full support of the city’s trying to help people with insurance premiums,” said Rosato. “If residents visit this site it will dispel any myths about insurance reform.”