Mississippi's Hurricane Mitigation Program Faces Funding Suspensions Amid Rising Insurance Rates

The Comprehensive Hurricane Damage Mitigation Program was established in Mississippi in 2007 after Hurricane Katrina but remained unfunded until 2024. Funding was suspended in early 2025 due to legislative disagreements, leaving the program in limbo amid rising windpool insurance rates and increased hurricane risk.

The program aims to provide retrofit grants to fortify homes against hurricane damage, with support for mitigation efforts tied to insurance premium discounts. Other Gulf Coast states have implemented similar programs showing positive outcomes in risk reduction and insurance affordability. The Mississippi program targeted six coastal counties with a $5 million fund allocated for retrofit grants of up to $10,000 for property owners. After a testing phase mitigated 28 homes, the program was halted due to removal of spending authorization. Former efforts by the Mississippi Emergency Management Agency largely failed due to oversight issues, complicating where mitigation programs should be administered. Coastal lawmakers have pushed for stronger mitigation but are wary of the Insurance Department operating the program given its regulatory role. Legislative hesitation remains around mandating local adoption of strengthened building codes reflective of Insurance Institute for Business and Home Safety (IBHS) standards. Insurance Commissioner Mike Chaney emphasizes statewide risk mitigation benefits yet faces criticism for slow progress and limited mitigation results.

The Mississippi Windstorm Underwriting Association faces rate increases due to subsidy rollbacks and lacks dedicated funding for mitigation efforts. Continued legislative deadlock and leadership disagreements stall progress, risking higher insurance costs and reduced hurricane resilience in coastal communities. Lawmakers consider outsourcing program operations or sustainable funding mechanisms but no consensus has been reached. Stakeholders acknowledge the need for a coordinated statewide approach balancing mitigation, insurance affordability, and regulatory oversight.