Mississippi Homeowners Pay Some of the Lowest Insurance Costs In The Country, But Could Change Next Year

Mississippi homeowners benefit from some of the lowest average homeowners insurance costs in the Gulf region, even though the state faces significant exposure to hurricanes and flooding.

While nearby Louisiana and Florida struggle with some of the nation’s highest insurance premiums , new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report shows that Mississippi remains comparatively affordable.

Mississippi’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Mississippi homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average $1,000–$1,499. Overall statewide costs fall into the $1,000–$1,499 range.

Mississippi has 829,682 insured homeowner households in total—401,890 with a mortgage and 427,792 without. Among mortgaged owners, 38,142 less than $100 annually and 38,238 pay $4,000 or more. Among those without a mortgage, 129,731 pay less than $100 and 22,139 pay $4,000 or more.

When compared with nearby states, Mississippi is among the more affordable. Louisiana homeowners with a mortgage average $2,000–$2,499, far higher than Mississippi. Florida is the most expensive, also at $2,000–$2,499, with hundreds of thousands paying more than $4,000 annually. By contrast, Alabama’s costs are similar to Mississippi’s, with mortgaged households paying $1,500–$1,999. Arkansas also falls in the $1,500–$1,999 range for mortgaged owners. This places Mississippi in the lower-cost tier of the Gulf states, though still exposed to major climate hazards.

Climate Risks Across the Region

The Realtor.com 2025 Climate Risk Report emphasizes how coastal states face the steepest insurance burdens. Miami homeowners lead the country, paying an average of $22,718 annually, or 3.7% of median home value. New Orleans, Louisiana, follows closely, with insurance costs consuming 3.6% of home value.

Mississippi does not appear among the metros with the steepest insurance burdens. However, its Gulf Coast location exposes it to hurricanes and flooding, risks that can drive premiums higher in localized markets. And change is absolutely on the horizon.

Mississippi coastal property owners will face a 16% increase in windpool insurance rates starting January 1, 2026, driven by legislative changes to the Mississippi Windstorm Underwriting Association, according to the state's Insurance Commissioner Mike Chaney. The state has reportedly spent over $400 million since 2005 subsidizing Gulf Coast rates through reinsurance, a practice now deemed unsustainable, according to Insurance Business Magazine.

Chaney emphasized that rising property costs highlight the need for stronger construction standards and mitigation efforts to make homes more resilient against severe weather. However, efforts like the Strengthen Mississippi Homes grant program were recently halted, leaving Mississippi as the only coastal state without a state-managed home-hardening program to help homeowners reduce risk and insurance costs.

A National Affordability Challenge

Mississippi’s relative affordability comes against a backdrop of rising concerns nationwide. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, and nearly half said they had already faced difficulties obtaining or renewing their coverage.

These costs are also influencing how people buy homes. Nearly 30% of buyers said they had completely changed the area where they were searching because of insurance issues, while another quarter said they had overhauled their strategies altogether. Even more troubling, 58% of homeowners nationwide said they would consider dropping coverage altogether if costs became too high, with younger generations most likely to take that risk.

For Mississippi homeowners, current premiums remain lower than in neighboring Louisiana and Florida, giving households a cushion. Still, with climate risks mounting across the Gulf Coast, affordability could become a greater challenge in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.