Mississippi Insurance Commissioner George Dale on Friday approved a 90 percent rate increase for homeowner policies provided by the Mississippi Windstorm Underwriting Association.
The association, commonly known as the wind pool, had requested a rate increase of almost 400 percent as a result of the devastation caused in August 2005 by Hurricane Katrina. Dale said a rate increase of that size was unacceptable.
“I regret that wind pool policyholders will have to pay any increase in premiums,” Dale said in a news release. “However, an increase is necessary in order to maintain the stability of the program. Without the wind pool, many residents would be unable to get any wind coverage due to a number of companies choosing not to write the wind on the coast.”
The Mississippi Windstorm Underwriting Association was created by the state Legislature to provide wind and hail insurance for coast property owners who could not obtain private insurance. The wind pool is funded by assessing all insurance companies that provide property coverage in the state.
About 16,000 homeowners, primarily in the three coastal counties, are covered by the wind pool.
Greg Copeland, attorney for the wind pool, earlier said the number insured is expected to increase dramatically as fewer private insurance companies return to the Gulf Coast.
In an effort to reduce the amount of the increase needed by the wind pool, Gov. Haley Barbour in June set aside $50 million of the federal Community Development Block Grants funds awarded to the state for hurricane recovery. The block grants helped hold down the size of the wind pool increase.
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