It is good to understand a little of the principle of insurance when you start checking into Mississippi homeowners insurance quotes. Insurance is setup to take the risk of a loss and reimburse the policyholder.

Insurance companies accomplish this by means of the individual premiums paid by all those insured and, in essence, put these funds in a fund. The insurance claims, due to losses on the homes of the policyholder, are paid out of this fund. 

Home insurance rates are determined by the coverage applied for when getting Mississippi homeowners insurance quotes.  What a policyholder desires covered and for what amounts, as well as the state lived in, have the largest bearing on the premiums.

The home insurance company is not the one to determine the coverage. They work on a commission basis, so they could have a conflict of interest. The homeowner needs to make this determination, and it should be determined after getting professional assistance. 

The tax assessment of the home is NOT the proper amount of coverage, since this amount would not cover total replacement of the home.  The appraised, or fair market, value is typically what is desired.  Less than or greater than this amount can be purchased when getting home insurance quotes.

Naturally the greater dollar value that is purchased the larger the premiums, and vice-versa.

The more home insurance purchased, the policyholder in case of a total loss to the home would pay the less.

The less purchased, thus the lower premiums could mean that the insurance may not be sufficient to cover the replacement of the home if it was lost due to fire, or some other means. 

If you have a mortgage on your home you must carry the minimum of a Basic Coverage insurance policy.  It is strongly recommended that it be verified that the amount insured meet the requirements of the mortgage holder.