The national guide covers property concepts: perils, hazards, ACV, replacement cost, coinsurance and the common conditions. This guide covers the Mississippi statutes that change how fire policies settle and how coverage is evidenced. They are the valued policy law (Miss. Code 83-13-5), the cancellation notice rules (83-5-28) and the rules on binders and certificates.

Valued policy law (83-13-5)

• When a building is totally destroyed by fire, the insurer can't deny that it was worth the full amount insured. The measure of damages is the amount of insurance.
  • Since 2023 (HB 544), this doesn't apply to builder's risk policies.
• An insurer may not knowingly issue a fire policy that, with other insurance, exceeds the property's fair value. Terms can't exceed 5 years.
• Three-quarter value clauses are prohibited. A violation is a misdemeanor with a fine of $200 to $1,000 per offense.

Notice of cancellation and nonrenewal (83-5-28)

• For coverage issued or renewed on or after July 1, 2026, cancellation, nonrenewal, reduction or less favorable renewal terms need at least 45 days' notice to the insured and any named creditor loss payee.
• Nonpayment is excluded, except that 10 days' notice is required when there's a named creditor loss payee.
• If notice is late, the insured may keep the policy for the rest of the notice period plus 45 days.
• The rule is written into every liability, fire and multiperil policy.

Binders and certificates (19 Miss. Admin. Code Pt. 5, Ch. 5)

• A binder is temporary evidence of coverage. A binder issued while a motor vehicle liability policy is pending satisfies the requirements for a policy (83-11-111).
• No binder, certificate or similar document may amend, extend or alter the coverage in the approved policy forms (Rule 5.04).
• No insurer or producer may issue an agent's opinion letter claiming a policy provides coverage it doesn't.
• A producer's violation counts as a violation of 83-17-71(1)(b), which can bring suspension, revocation or a fine (Rule 5.06).

Rating

• Fire insurers must be members of the Mississippi State Rating Bureau (83-3-7).
• The Bureau may not recommend rates that discriminate unfairly between risks of essentially the same hazard (83-3-23).

Common exam traps

• A total fire loss pays the full amount insured on the building. Builder's risk is excepted.
• No three-quarter value clauses. No fire policy term longer than 5 years.
• Notice: 45 days for coverage on or after July 1, 2026.
• Certificates and binders can't change policy coverage.