One Gulf Coast Town Tries to Tackle Skyrocketing Insurance Rates

Lovelace Drugstore in Ocean Springs has seen insurance rates rise by as much as 80%

A newly released survey shows that is skyrocketing insurance rates are having major impacts on one Gulf Coast town. MPB’s Phoebe Judge reports.

The insurance survey was sent out to 8000 homes and business in Ocean Springs. The results showed what many towns on the Gulf Coast are experiencing, a dramatic increase in insurance rates since Hurricane Katrina which is having an impact on not only on home ownership but also on economic development. Ocean Springs mayor Connie Moran,

“They are saying look, we just can’t take anymore.”

The Ocean Springs survey showed an average increase in insurance rates of 111% since 2005, and 52% of those who responded said it was having an effect on their ability to own a home. Again Mayor Moran,

“People don’t understand why especially during years where the insurance industry nationwide has made record profits that our insurance rates have more than doubled.”

Right in the middle of downtown Ocean Springs sits Lovelace drugstore and soda fountain. The business has been in the same location for 100 years, and owner Paul Clark says their insurance rates have skyrocketed 40-80% since Hurricane Katrina,

“It is frustrating because we are in a building here that had no damage during Camille, no damage during Katrina yet my rates go up.”

Clark says the cost of insurance is having a direct result on businesses throughout the town,

“When you have that much up front money every month, and then you have to raise your prices so much in the stores that people can’t afford to buy it there is no sense is going into business.”

The survey did show that 95% of those who responded support 4th district congressman Gene Taylor’s multi peril insurance act. That legislation would protect homeowners from wind and flood damage under one policy.