25 Miss. Code. R. 202-15.2
The VHPB requires Windstorm (Hurricane) Insurance in the six coastal counties of Mississippi. (Hancock, Harrison, Jackson, Pearl River, Stone, George).
The dwelling coverage amount will be the same as on the Hazard (Homeowners) policy.
The maximum deductible amount required is 2 percent of the dwelling coverage. However, should the borrower request a higher deductible or his/her insurance company will not allow the 2 percent deductible, the VHPB will review the account to determine if a higher deductible of 5 percent is acceptable. The review will consider the following:
Four times ded amount = $30,000. Equity position = $50,000
In this example, the higher deductible of 5% is Acceptable
Four times ded amount = $30,000. Equity position = $10,000
In this example, the higher deductible of 5% is Not Acceptable
Both of the examples above assume the dwelling coverage amount approximates the value/ replacement costs of the dwelling.
NOTE ON WINDSTORM INSURANCE: Severe storms, namely hurricanes, can cause widespread damage and destruction of property located in the six southern most counties of Mississippi. Because of the possibility of such storms, insurance companies often times offer limited coverage or no coverage at all. The VHPB requires wind insurance based on the above deductible amounts. However, because of limitations dictated by insurance companies, the deductible limits of 2% may not be obtainable. In such cases, on new loans, the VHPB management will determine the best course of action. On renewals, the VHPB staff will use its best efforts to maintain the deductible percentage as above. Management will review exception cases as they are determined.
25 Miss. Code. R. 202-15.2