Fortify your castle, Nationwide will discount premium in coastal counties

Construction issues are Sop’s specialty; but, since he’s also a big football fan, I’m posting this Mississippi story I found on a national insurance news site.  Hopefully, readers from the Coast will be able to add details about the cost of reinforcing a home to quality for the discounted premium.

Nationwide Insurance is offering up to 35 percent premium discounts along the Mississippi Gulf Coast to qualified policyholders who reinforce their houses against wind damage.

Insurance Commissioner Mike Chaney says Nationwide is the first insurer to offer a discount through the Wind Mitigation Discount Program. The program, which takes effect in April, offers discounts based on home construction features, including roof type, window protection and secondary water resistance.

The discount, announced Oct. 29, applies to about 12,000 Nationwide policyholders in Jackson, Hancock, Harrison, George, Pearl River and Stone counties who presently have qualifying coverage for wind damage.

Chaney says customers who participate in the program are still eligible to seek other premium credits that Nationwide offers throughout the state.

5 thoughts on “Fortify your castle, Nationwide will discount premium in coastal counties”

  1. Concrete construction costs $200/sq ft and up. Elevated stick $135/sq ft or less depending on amenities.

    Math on a 1,500 sq foot house. $65*1500=$97,500.
    The insurance discount in the wind pool would total $4,000 or so year. I’ll be generous and say total insurance savings would be $4,800/year or $400/month.

    Forgetting for a second there are lending standards lets assume you park the difference on the mortgage note. At 5.75% on a 15 year ammo the monthly payment on the extra construction costs would be $800 and change. Same terms except 30 years ammo and the monthly pay would be around $570.

    Both ways it is less total money out monthly to construct stick and until that basic economic fact changes the vast majority of the houses will be stick constructed.

    To be clear I’m not dissing the Nationwide program. Fortified structures should get discounts on coverage. It’s unlikely to make a difference on the overall housing situation on the coast, in fact even if every insurer followed suit we’d still have an affordable housing problem IMHO.

    sop

  2. Checking my understanding –

    You’re saying $570-800 per month on top of regular monthly payment for same size construction?

    If that’s correct, can you give what you think the payment on 1,500 sq ft house would be – upper end, lower end and average.

    Just educated guess is fine. I’m trying to get idea of amount of income required – my guess there is that the people who need to discount most are least able to afford any house at all, much less a fortified one, given the current market.

  3. $1,600 or so a month for stick, $1900 or a so a month concrete.

    Your understanding is correct, my numbers are in addition to the monthly note.

    Material prices are coming down which helps but the spread between stick and concrete will not change IMHO.

    sop

  4. There needs to be alot of thought in this process not only the bottom line of numbers but safeguarding your family and everything you own. I think extra safeguarding is a wonderfull thing.

    We do the wind mitigatrions in Florida which is mandatory for companies that write here to give discounts for certain safeguards. It will be spreading throughout all the coastal areas that have had Hurricanes. The program is a great one indeed.
    http://windflorida.net/

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