Missouri Insurance coverage Division Report Highlights Price and Lack of Protection in Excessive-Danger Areas

The Missouri Division of Commerce and Insurance coverage (DCI) issued an Earthquake Survey in December 2023 that reveals a lack of information about danger and insurance coverage protection is an issue, whereas the associated fee and lack of obtainable earthquake insurance coverage protection in high-risk areas of the state continues to be the first situation.

The Earthquake Insurance coverage Market Report supplies annual perception into the standing of earthquake insurance coverage protection in Missouri. The DCI continues to work on educating Missourians about earthquake danger and their insurance coverage protection choices in preparation for restoration following a large-scale New Madrid Seismic Zone (NMSZ) earthquake.

Survey knowledge confirmed that properties within the excessive earthquake danger space of the NMSZ within the southeastern a part of Missouri have considerably increased prices and a lowered variety of insurance coverage choices than the remainder of the state:

  • For a $200,000 ranch type, 2,500-square-foot house with a composite shingle roof, the common premium for Caruthersville is considerably higher than the remainder of the state, with a median premium of $2,134 vs. St. Louis at $398 and Kansas Metropolis at $206.
  • In 2024, the common premium for a $200,000 ranch type, 2,500-square-foot house with a composite shingle roof in Caruthersville rose almost 7% in contrast with 2023.
  • There have been fewer choices for Caruthersville, as firms providing insurance coverage for brand spanking new prospects decreased by almost 20% since 2022.
  • The variety of firms writing protection for masonry properties stays low, with solely 45% of carriers protecting it. Common premiums ($200,000 ranch type, 2,500 sq. foot house with a composite shingle roof) for masonry and masonry veneer properties are almost 45% increased in Caruthersville than frame-only properties.

The New Madrid Seismic Zone is the one of the crucial lively seismic areas within the U.S. averaging 200 earthquakes per yr.

Earthquake uptake in Missouri has been dropping for a while. An Earthquake Insurance coverage Market Report from the DCI in 2021 confirmed protection within the six-county New Madrid area of the state, the proportion of residences with earthquake protection declined by 47% between 2000 and 2020, from 60.2% to 12.7%.

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