If you own one of the 638 homes or 44 businesses recently annexed into the city of Columbus, you’ll be paying more property taxes, but some of that cost will be offset by lower insurance rates due to improved fire protection.
Properties previously outside the city limits were either considered under Class 8 or 5 fire protection in a 10-class scale with Class 1 being the most protected, according to the Mississippi State Ratings Bureau. The city of Columbus has a Class 4 rating. A transition from 5 to 4 alone could result in a substantial yearly savings, according to Swoope Insurance President Mark Hardy. Depending on the carrier, those affected could see up to a 10 percent savings on property insurance due to the change.
“It’s going to vary from company to company,” Hardy said. “Some carriers recognized the fact that although you weren’t in the city limits, you still had the benefit of some fire protection. Some did not. For the ones that did not recognize that, people should see an immediate decrease provided that their agents are notified.”
Hardy added some residents may not see a decrease at all, but the best way for them to make sure they’re getting any benefit they can is to contact their agent if their home or business was annexed.
“The agent can contact the carrier and get them the reduction — if it’s applicable to them — right then,” Hardy said.
In general terms, an owner of a $200,000 house may have paid about $1,200 a year for home insurance if they were in a Class 8 area. Insurance for that same home inside the city could be more than $100 cheaper, he said.
Columbus Fire & Rescue Chief Martin Andrews said the service CF&R now guarantees the areas means better fire safety for property owners.
Lowndes County Tax Assessor Greg Andrews previously told The Dispatch that a $2 million business in the county brought inside the city will have to pay $44,508 in property taxes a year beginning next October compared to the $25,521 it paid before. A resident who has a parcel worth $100,000 in the county who is not covered by homestead exemption will pay $2,225 a year instead of the $1,276 he used to pay.
Nathan Gregory covers city and county government for The Dispatch.
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