Options growing in South Mississippi for wind insurance, especially for fortified homes

June 14--Insurer Nationwide is writing homeowner policies with wind coverage south of Interstate 10 for some policyholders willing to also buy auto and life insurance.

In some cases, residents will find it is cheaper to add life insurance with Nationwide in order to escape the state wind pool, insurer of last resort for Mississippi's six southernmost counties.

Although some states don't allow bundling, called "multi-lining" in the insurance business, Mississippi and many others do. Mississippi Insurance Commissioner Mike Chaney said he approved Nationwide's plan for adding wind coverage on the Coast when other coverage is purchased.

Nick Andersen, Nationwide assistant vice president of product underwriting, said other factors also are considered for homeowner policies with wind coverage. Homes qualify if they are built to standards set by the Institute for Business and Home Safety, an insurance industry-sponsored organization with uniform standards for fortified construction. IBHS-certified homes, he said, might even qualify for coverage south of the CSX rail line, which runs parallel to the waterfront.

For homes without IBHS certification, Nationwide might offer wind coverage in a homeowner policy south of Interstate 10 -- but not south of the railroad tracks -- depending on the home's age and other factors, Andersen said.

Most major carriers stopped writing south of the tracks after Hurricane Katrina in 2005, ceding the highest-risk territory to the state-backed wind pool.

Andersen said his company is trying to encourage residents to build to IBHS standards because testing shows such construction lowers hurricane losses.

The state's largest carrier, State Farm, offers wind coverage within 2,500 feet of the waterfront only for IBHS-certified construction, and also depending on the structure's location in relation to the body of water, spokesman Roszell Gadson said.

Allstate and affiliated companies offer wind coverage in Coast counties under some circumstances, spokeswoman Allison May said, including having an auto policy with the company. IBHS certification can qualify a home for coverage with wind. Otherwise, she said, the company considers the home's age and condition.

Chaney said the insurance market is loosening up, with 16 new companies offering wind coverage on the Coast. One new entry, he said, is Gulf Stream. The company offers only property and casualty coverage, so bundling is not required.

"It's been slow," Chaney said, "but we're making progress."

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