Proper Classification of Mississippi Cottages

[LOGO] # MISSISSIPPI INSURANCE DEPARTMENT 501 N. WEST STREET, SUITE 1001 WOOLFOLK BUILDING JACKSON, MISSISSIPPI 39201 www.mid.state.ms.us MAILING ADDRESS Post Office Box 79 Jackson, Mississippi 39205-0079 TELEPHONE: (601) 359-3569 FAX: (601) 359-2474 WATS: 1-800-562-2957 (Incoming - USA) MIKE CHANEY Commissioner of Insurance State Fire Marshal ## BULLETIN 2009-7 ## MISSISSIPPI DEPARTMENT OF INSURANCE ## PROPER CLASSIFICATION OF MISSISSIPPI COTTAGES TO: ALL LICENSED PROPERTY AND CASUALTY INSURANCE COMPANIES AND PRODUCERS WRITING HOMEOWNERS INSURANCE FROM: COMMISSIONER MIKE CHANEY DATE: AUGUST 20, 2009 RE: PROPER CLASSIFICATION OF MISSISSIPPI COTTAGES The Mississippi Alternative Housing Program provides Mississippi cottages, more commonly known as Katrina Cottages, to coastal residents. As the federal funding for these Mississippi Cottages fell under the Stafford Act, the homes could not at the time of issuance, nor for twenty-four months thereafter, be considered a permanent structure. However, these homes were built as modular homes and meet local building codes and the International Residential Code. Therefore, the cottages were given dual designations as being built to both HUD-code requirements for manufactured housing, and as also meeting the International Residential Code requirements for modular housing. The Mississippi Cottages are considered to be temporary manufactured housing until the expiration of the grant period. Upon the expiration of the grant period, the homes can be made into permanent structures once the homes meet jurisdictional foundation requirements. For the purposes of rating these Mississippi Cottages, the Mississippi Department of Insurance ("Department") advises insurance companies that if a home is installed pursuant to HUD-code manufactured housing requirements, the home should be rated as a manufactured home. If the cottage meets the foundational requirements established by the local building codes and the International Residential Code, the home should be rated as a modular home. Insurance companies and producers should also be advised that prior to the prospective insured purchasing insurance, the insured will have been advised by MEMA whether the insured has a manufactured home installation, or has a foundation as required for modular homes. Should you have any questions concerning this letter or the information requested herein, please contact the Legal Division at the Mississippi Department of Insurance at (601) 359-3577. MIKE CHANEY COMMISSIONER OF INSURANCE