Home Insurance in Missouri


UPDATED: NOV 2020 | 2 MIN READ

On top of the regular disasters which commonly plague the Midwest and central plains, Missouri homeowners have sinkholes to worry about, as well. On top of that, homeowners have lower annual incomes, higher crime rates, and lower levels of Education to worry about raising their annual premiums. Thankfully, lower housing costs and getting the right type of homeowners insurance coverage can help you mitigate those factors and lower your annual premium. And we’ll be more than happy to show you how. 

  • Fun fact – Kansas City, MO is known as the city of fountains because it is number two in the world for having the greatest number of water fountains within its city limits. The only other city on the entire planet that outshines Kansas City in this respect is Rome, Italy. 

Average Rates in Missouri

Missouri ranks #16 in the country when it comes to the most expensive states for homeowners insurance. Now, having said that, you should know that average annual premiums for Missouri homeowners are only $1,285 a year – which is less than $100 above the national average. Missouri is just below New York state as far as expensive premiums go, and South Carolina is more affordable, but both states differ by seemingly negligible amounts when compared with Missouri.

Renters, however, are doing a little bit better. If you are renting instead of trying to own your own home, odds are that you’re only paying around $173 per year, which is actually $7 less per year than the national average. It’s not a huge discount, especially when compared to homeowners insurance, but every little bit of savings helps. 

Missouri Legal Insurance Requirements

Technically, homeowners in the US are not required to purchase homeowners insurance – unless the bank who is managing their home loan deems otherwise. Overwhelmingly, most lenders do choose to require homeowners to maintain quality insurance coverage over the life of their home loan. After their repayments are complete, home owners are free to do whatever they wish. The vast majority of homeowners, however, choose to maintain coverage even without any required legal mandate to protect themselves from the devastating costs of perils damaging or destroying their home.

As a Missouri homeowner, you should definitely ask your home insurance provider about sinkhole coverage. Missouri is one of seven states where sinkholes are the most common. Some states, like Florida and Tennessee, require homeowners insurance providers to at least offer sinkhole coverage for purchase. But since the Missouri Department of Insurance does not require this of homeowners insurance companies in your state, you may have a harder time finding the coverage you need to adequately protect your home. 

Common Risk Factors in Missouri

Obviously, sinkholes can be a big problem for Missouri homeowners, and will require you to do a little extra searching in order to find separate coverage to protect yourself. The same thing goes for flooding. Thankfully, FEMA manages the National Flood Insurance Program and helps homeowners like you get adequate flood coverage at a reasonable rate. Damage from severe thunderstorms and even hurricanes blowing up from the Gulf Coast have been becoming more problematic in recent years, too. Thankfully, most homeowners insurance policies cover wind damage due to severe storms. But you might want to talk with your insurance agent and go over the specifics of your policy just to make sure.

The Missouri FAIR Plan (also known as the Missouri Property Insurance Placement Facility) is a limited type of homeowners insurance that you can apply for if you have been rejected for coverage in the standard market. Keep in mind that these policies don’t have to be competitively priced, so if you absolutely cannot find coverage anywhere else, be prepared for these annual premiums to take a significant chunk out of your budget. These are named peril, actual cash value plans, which payout lesson claims due to accrued depreciation and the fact that these policies will only pay out for specifically named perils. You cannot purchase liability, flood, earthquake, or sewer backup coverage through a FAIR plan. However, you can purchase stand-alone sinkhole policies and add limited theft coverage to your policy if you are worried about these perils. 

Insurance Demographics/Statistics in Missouri

Between the sinkholes and all the severe weather, it’s easy to see why Missouri is a little bit more expensive when it comes to home insurance premiums. But those aren’t the only things that are raising the costs of your annual premiums as a homeowner in Missouri. In order to understand why premiums are so much higher, let’s take a look at some of the other important factors that are at play.

  • Home values – in Missouri, the price of your home determines how much coverage you have to pay for it. Most lenders want you to purchase at least 80% of the replacement cost of your structure. But since home values in Missouri are around $170,000, and the average home in the US is over $250,000, this means you get to purchase less coverage and save money on your annual premiums.
  • Crime rates – in Missouri, your chance of becoming a victim of property crime – and having to file a claim with your homeowners insurance policy – is 1 in 38. This is, unfortunately, more common than the national average of 1 in 43. You may have to take some minor precautions to secure your property and your home in order to keep these crime statistics from penalizing you on your annual insurance premiums. 
  • Lower average incomes – in Missouri, lower incomes might be costing some homeowners in the form of higher premiums, too. The average Missouri resident is over $8,000 less rich on an annual basis compared to the rest of the country, with the average annual income totaling $57,409. And as confusing as it sounds, insurance companies get nervous when their customers aren’t making enough money to reliably pay their premiums on time and in full. This usually means they end up getting charged more.
  • Education – in Missouri, only 29% of residents on average have at least a bachelor’s degree under their belts. This is, usually, strongly connected to how high your income level is. The national average is 32%, so that may have something to do with my Missouri’s homeowners’ incomes are trailing behind the rest of the nation. 

Where To Purchase Home Insurance in Missouri

There are two ways you can save money on your homeowners insurance today: you can start shopping around for a new policy on your own, or you can start shopping around online. Only 17% of homeowners are even trying to comparison-shop online these days. And that’s a shame, because the best quotes from the most reliable insurance providers are available online right now at your fingertips!

Another reason you might want to search for a new policy in general – whether online or not – is because less than half of homeowners bother to comparison-shop in search for better deals when their policy is up for renewal. While some people may save money based on loyalty reward programs, the truth is that you could be leaving money on the table by not exploring your options. And we want to help. Just contact us today and fill out our simple online form, and we can start saving you hundreds in premiums every year.

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