Missouri Home Insurance

Keeping a solid roof over your head is important in Tornado Alley, and residents of Missouri know that as well as anyone. The Simple Dollar’s guide to homeowners insurance in Missouri is designed to keep property owners informed about their rights and coverage options. Read on to learn more about how homeowners insurance works in Missouri, and to get a better sense of the housing market and other factors in the state.

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Stats in Your State

Gaining an appreciation for the price of home insurance and the housing market in Missouri is as easy as glancing at a few graphs. We’ve compiled key data sets to illustrate the nature of the market and how developments in recent years compare to U.S. averages.

Homeowner Insurance Premiums

As the average cost of homeowners insurance in the U.S. has risen from 1999 to 2008, so has the average premium in Missouri. Over this 10-year span, the cost of homeowners premiums increased roughly 178%, all while the price of homes skyrocketed and subsequently dropped in the housing market crash. Despite this, homeowners insurance rates remained steady throughout this period of bust.

Renter Insurance Premiums

During the same period that saw homeowners insurance rates increase steadily in both Missouri and the U.S., the cost of renters insurance rose to nearly $190 per year in 2003 before plummeting to just $154 per year in Missouri in 2007. The decrease in renters insurance is largely due to the rebounding housing market and subsequent drop in demand for rental properties.

Existing Home Sales

At the peak of the housing bubble, Missouri’s existing home sales nearly reached 143,000 per year; by 2010, this number had fallen to 94,600, a drop of more than one third of the sales market.

Flood Insurance in Region

From 2011 through 2012, approximately 1,713 flood claims were filed in Missouri for damages totaling $51,444,000. In the Great Plains region, Missouri ranked only behind North Dakota in terms of volume and cost of flood damage.

Homes Built

Missouri’s new home development has remained steady throughout the 20th and early 21st centuries with consistent growth each decade, as evidenced by the graph below. Roughly a quarter of Missouri’s homes were built after 1990, and trends would indicate that growth will continue in the same pattern as Missouri’s economy is consistently stimulated by the Mississippi river shipping traffic and floodplain farming regions.

Rules in Your State

Here you’ll find the rules and regulations applicable to all insurance companies throughout the state. Missouri has fairly well defined rules for conduct and business practices with regard to consumers and insurers, so it is easy for consumers to know their basic rights during an insurance dispute or claim. If you feel your rights have been compromised, contact an attorney for a consultation.

General Provisions for All Insurers: Unfair Trade Practices

The Missouri Insurance Commissioner has defined unfair trade practices that apply to all insurers. The link above directs to the pertinent chapter of the administrative code, and the links below detail specific unfair claims settlements and trade practices.

Homeowners Insurance Regulations

Homeowners insurance has a specific chapter of the insurance code dedicated solely to home insurers and their business conduct, which makes it easy for consumers to find the relevant information they need in one place.

Representatives & Resources in Your State

Below you will find links to the state representatives and resources relevant to homeowners insurance in Missouri. Use them to learn more about choosing a good homeowners insurance policy, shopping for homeowners insurance, and assessing your own coverage needs before you buy.

Missouri Department of Insurance
PO Box 690
Jefferson City, MO 65102-0690
Contact Information
Complaint Resource
Use the above link to contact the insurance commissioner’s office to file a complaint against an insurer.
Homeowners Insurance Information
The Department of Insurance has compiled useful information for consumers to learn more about homeowners insurance and how it all works.
Renters Insurance Information
Use the above link to learn more about renters insurance information through the Department of Insurance’s website.

Federal Emergency Management Association: Region 7
Flooding, freezing, droughts and tornadoes all pose yearly threats to the Great Plains and to Missouri specifically, which is why FEMA provides disaster relief and information on how to stay prepared ahead of time. Visit the FEMA Region 7 site to learn more about how to plan ahead in case of disaster.