Property Insurance Coverage and Claims
Coverage structure
A homeowners policy (commonly HO-3) insures the dwelling on an open-perils basis and personal property on a named-perils basis, with Coverage A (dwelling), B (other structures), C (personal property), D (loss of use), E (liability), and F (medical payments). Additional coverages include debris removal, reasonable repairs, trees and shrubs, and credit card or forgery protection, each with sublimits. Exclusions typically include flood, earth movement, neglect, intentional loss, and ordinance or law; flood requires a separate NFIP or private flood policy.
Settlement mechanics
Property claims require prompt notice, protection of property, cooperation, inventory, and a sworn proof of loss when requested. Insurers may use appraisal when the amount of loss is disputed; appraisal decides amount, not coverage. Replacement cost holds back depreciation until repair or replacement occurs. Matching rules vary: a carrier may owe for undamaged shingles if a reasonable repair cannot match, depending on policy and Mississippi practice; document the mismatch.
Named-storm deductibles
Many Mississippi policies contain a percentage hurricane or named-storm deductible. It is usually calculated on the Coverage A dwelling limit, not the loss amount, and triggers when the storm is named by the National Weather Service. A $300,000 dwelling with a 2% deductible has a $6,000 deductible, which can exceed a small loss payment.
Worked example
A 2% named-storm deductible on a $300,000 dwelling equals $6,000. The covered dwelling damage is $50,000. The insurer pays $44,000, subject to the policy limit, before any recoverable depreciation. If the policy instead had a $2,000 flat deductible, the payment would be $48,000. Confirm which deductible the endorsement applies before estimating.
Traps
- Applying a hurricane deductible to a non-named storm.
- Missing flood damage hidden in a wind claim.
- Ignoring ordinance-or-law exposure after a total loss.
- Treating ACV personal property as RCV.