Wind pool official sees market improving

But residents shouldn't expect rates to go down

By ANITA LEE
calee@sunherald.com

BILOXI --

Wind insurance sold by South Mississippi's insurer of last resort, the state wind pool, might be a bargain after all.

Coast property owners felt the pain when wind pool rates increased post-Katrina by 90 percent for homeowners and 142 percent for businesses. Dave Treutel, vice chairman of the wind pool and an independent insurance agent, said he's found two private companies willing to offer wind coverage on the Coast, but their rates are higher than the wind pool's.

Treutel spoke Tuesday at an affordable housing summit that Back Bay Mission sponsored at IP Casino. He said Coast residents should not expect insurance rates to come down, but he does see the market slowly improving.

The Legislature amended the law as it applies to the wind pool, allowing the insurer to build up reserves to protect from future losses. The wind pool also is offering lower premiums for those who can stomach higher deductibles and discounts for fortified structures.

Before the hurricane, Treutel said, 90 percent of Coast homes were covered for wind damage by six of 65 companies doing business in Mississippi. Wind pool officials hope to sell more companies on taking smaller shares of the Coast market.

After all, Katrina washed away weak structures and left empty lots where new homes must be built to tougher standards.

"If you're an insurance company," Treutel said, "this should be the land of opportunity."