Miss. Approves Nationwide's Wind Discount Plan

Mississippi's insurance regulator has approved a wind mitigation discount program that could give policyholders with Nationwide a premium credit of up to 35 percent

The program, approved by Insurance Commissioner Mike Chaney, offers differing levels of discounts to customers based on home construction features, including roof type, window protection, and secondary water resistance.

"Programs of this type are essential for the continued recovery of the coast," said Mr. Chaney. "Stronger building codes, adhering to flood elevations and proper land use are the foundations of bringing affordable, available and accountable insurance back to the coast."

He said codes, flood elevations and land use "can help protect the consumer from major damage during the next disaster. By building or refitting to stronger, fortified standards, a homeowner can help reduce the amount of damage done to their home in a storm and now it will, in the long run, save them money on their insurance premiums."

Only policyholders living in coastal counties (Hancock, Harrison, Jackson, George, Pearl River, and Stone County) are eligible to apply for the credits provided in the Nationwide program which is scheduled to go into effect in April of next year. The program applies to qualifying new and renewed policies with Nationwide wind coverage.

Customers who qualify under this program are still eligible to qualify for other premium credits Nationwide offers throughout the state. Through this program a policyholder can stack other Nationwide discounts and in a true best case scenario, could receive as much as a 70 percent credit on homeowner premiums, the insurance department said.

When communities illustrate a willingness to build back stronger and enforce building codes, companies will see the state as a more attractive place to do business, Mr. Chaney added. He urged other companies to follow the example set by Nationwide and to explore similar programs.

The department said another incentive that could make Mississippi more attractive to companies is the HB 753--Wind Mitigation Program passed by the 2007 legislature. The combination of using wind mitigation techniques and building to stronger building codes has the potential to save consumers hundreds of dollars a year in insurance premiums, the department estimated.

However, the bill was passed without funding, the department continued, adding that it asked for funding in 2008 and will be asking the Governor and the Legislature for funding again in 2009.