If a tornado were to strike your home, how would you react? Does your insurance provide enough coverage for a total rebuild? When you live in an area prone to disasters (like Missouri), you need a homeowners insurance policy that provides you with a game plan — and peace of mind. Although most of Missouri isn’t within the corridor of the aptly named “Tornado Alley,” the state is still hit by an average of 34 tornadoes per year.

Protection from natural disasters is just one reason why you need homeowners insurance, but there are many more, including liability protection and coverage in the event of theft. We’ve researched multiple providers and found the best homeowners insurance companies in Missouri.

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The Best Homeowners Insurance in Missouri

Freshome’s Recommendations: State FarmAmicaLiberty MutualFarmersTravelers InsuranceCountry Financial

Freshome.com recommends that homeowners take a look at Amica, State Farm, and Liberty Mutual when shopping for home insurance from a national brand. On the other hand, if you want a smaller but still reliable company, try one of the regional companies like Country Financial, Farmer’s, and Travelers.

These companies consistently met our criteria. For a company to meet our standards, it must have an overall satisfaction rating from JD Power of three stars (out of five) or more. Its financial strength rating (a measurement of how well a company can be counted on to meet its claims should a disaster occur) must stand at B+ or higher from A.M. Best and the equivalent high score from either Moody’s or Standard & Poor.

In order to provide the most unbiased results, we sought quotes from our three top companies: State Farm, Liberty Mutual, and Amica. In our fictitious scenario, the insured is a 30-year-old male. He doesn’t smoke, has never had any prior homeowner’s insurance claims, holds a Bachelor’s degree, and is gainfully employed. The example home was built in 1980, still has its original roof, and is located in the town of Ironton, Missouri. Most notably, the type of policy we sought quotes for was an HO3 policy.

Our Quotes
Amica$967 Per Year
State Farm$2,020 Per Year
Liberty Mutual$2,928 Per Year

State Farm provided a quote of $168.33 per month, or $2,020 annually for a premium with $200,000 in dwelling coverage, $20,000 in coverage for other structures on the property, and $150,000 in coverage for the items inside the home. This policy also had a 1% or $1,000 deductible.

Amica was significantly cheaper than State Farm. At 10 payments of $97 each, or $967 annually, Amica provided $200,000 in dwelling coverage, $20,000 for other structures, and $150,000 for the contents of the home. The policy also had a $1,000 deductible.

Liberty Mutual provided far higher quotes than the other two companies listed here; however, Liberty Mutual also had a more intuitive process for gathering quotes. This process included an estimate of the total rebuild value of the home, something neither State Farm nor Amica provided. Liberty Mutual quoted $246.83 per month for $160,000 in dwelling coverage (the policy capped at this amount), $16,000 in coverage for other structures on the property, and $120,000 in coverage for the contents inside the home. The policy carried a $1,000 deductible, but also an additional deductible of 0.5% when the loss was caused by wind damage.

While these quotes vary widely, they were obtained using the bare minimum of information. In order to provide a neutral result, we did not add information that may have resulted in discounts. There are a number of ways to reduce your premium (explained below). Keep in mind that quotes are highly personalized and are based on a variety of factors; compare these quotes and keep the results in mind when searching for your own quote.

What You Should Know Before Getting a Quote

The most common type of homeowner’s insurance policy in the United States is an “open perils” policy. HO3 policies are considered this type, which is why they are the most popular kind of homeowner’s insurance policy. You may also see an HO3 policy referred to as “special form 3.”

HO3 policies provide open perils protection against the home and named perils protection for the contents inside of the home. The difference is simple.

Open perils policies provide coverage for all causes of loss except those that are specifically excluded in the policy. These policies tend to be slightly more expensive, but the broad spectrum coverage it provides is worth it to many homeowners.

Named perils policies provide coverage only for causes of loss named in the policy. While the exact threats will vary from policy to policy, the most common are:

  • Theft
  • Fire and/or lightning
  • Explosions
  • Smoke
  • Freeze damage
  • Vehicles
  • Falling objects
  • Volcanic eruptions
  • Windstorm and/or hail
  • Riots
  • Aircraft
  • Vandalism

In addition, HO3 policies provide six distinct areas of coverage.

Coverage A is dwelling coverage. This part of the policy protects the home itself, and is the primary insurance aspect you seek a quote for.

Coverage B is coverage for the other structures on the property. These can include detached garages, fences, storage sheds, etc. This coverage is typically limited to around 10% of Coverage A, but can be modified to fit your particular needs.

Coverage C is coverage for the contents inside the home: furniture, electronics, sentimental items, etc. However, if you own items of extraordinary value, such as rare paintings or sculptures, you should seek additional coverage for those specific items. Coverage C is usually 75–80 percent of Coverage A.

Coverage D is protection against loss of use. If your home is destroyed or severely damaged, you’ll need somewhere to live during the rebuild/repair process. This coverage area provides you with the necessary funding for a hotel, most often at the actual loss of use value.

Coverage E is personal liability protection. In the event you are sued, this creates a buffer between your assets and the litigation, providing funding to settle the suit.

Coverage F is medical coverage. If someone is injured on your property, this coverage area helps to cover the costs of their rehabilitation and medical bills.

How much coverage do I need?

When you seek out your own homeowner’s insurance, you’ll want to make absolutely sure you have enough coverage for a total rebuild. If you aren’t sure what the rebuild value of your home is, speak to an appraiser; they can give you an estimate of your home’s total value and the additional labor and material cost it would require to restore it.

The average premium in Missouri is $87.73, or $1,053 per year. Given the propensity of tornadoes to occur with Missouri, insurance rates are a bit higher. The area is high-risk.

“The number one threat to homes is water. One of the most destructive forces on earth is water. When you think about wind, water, or fire, it’s always water.” –

Douglas Andrews, Century Reality in Marshfield, MO

How To Prepare for a Quote

When you provide information for a quote, there are a few things you should have with you.

Your social security number

Many insurance companies will tailor your premium based on your credit score. Poor credit can result in higher premiums. You should be aware that any time you provide your SSN to an insurance company, it will create an inquiry on your credit report. While this won’t necessarily affect it in a negative way, too many inquiries in too short a period can create problems.

Details of prior claims

If you’ve filed a homeowner’s insurance claim before, the company you’re seeking a quote from will most likely want the details. This serves two purposes: the first, to eliminate the risk of fraud. The second is to determine what sort of homeowner you are and whether you are of higher-than-normal risk.

Information about recent renovations

Recent renovations can increase the value of your home, but can also reduce its risk of damage. For example, new roofing may reduce hail damage and new windows might be more wind resistant.

Organizational memberships

Some insurance companies offer discounts if you belong to certain organizations. While there is no guarantee, it’s a good idea to keep your information nearby.

“Don’t get more coverage than you need, but make sure you have enough.” –

Mary Sheridan, RE/MAX Legacy

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Why are Missouri’s rates so expensive?

The average monthly premium in Missouri is $87 per month, with an average annual premium of $1,044. These are 5 percent higher than the national average due to the risk of tornadic activity within the state.

Missouri is hit by an average of 34 tornadoes per year, although 48 hit the state in 2015. No casualties occurred as a result of the tornadoes in 2015, largely due to preparation and readiness by the citizens. However, 2011 was a different story. A record breaking series of storms swept through Missouri, including the infamous tornado in Joplin.

That twister resulted in 124 deaths and $2.8 billion in damages. Insurance companies paid out more than $2.2 billion in claims. The storm struck in May; by July 15, more than 16,656 insurance claims had been filed. This level of risk has resulted in an increase in insurance premiums in certain areas.

What can I do to reduce my premiums?

Thankfully, there are several steps you can take to reduce the cost of your homeowner’s insurance. The first, and most effective, is to bundle it with automotive insurance from the same company; this can often result in savings of as much as 30 percent.

The next step you can take is to install burglar and fire detection systems that are monitored off-site. Take care to evaluate whether the monthly fee required for this service balances out in the percentage you save.

Installing storm shutters and doors can help protect your home from extreme wind conditions and reduce premiums, particularly in a state like Missouri.

Finally, if you have no other structures on your property or do not need high levels of coverage for your personal possessions, reducing areas B and C in your HO3 policy coverage can reduce your premiums. Make sure that you do not lower them too much; many people underestimate how much their personal possessions are actually worth.

FAQs

What are common coverage gaps?

The most common coverage gaps in homeowner’s insurance relate to specific causes of loss that are rare enough to be considered low risk, such as a sump pump backup or frozen pipes. Although many policies may cover water damage, few protect against a burst pipe in the winter.

What about flood insurance?

The majority of home insurance policies do not protect against flooding. If you live near a body of water, you should absolutely have flood insurance. The Missouri River has suffered numerous floods in recent years, and more than $2.5 million  in damages were reported in 2014 as a result of flooding. Even if you live far away from a body of water, flood insurance is a good idea; floods can occur from more than just nature. A burst pipe, backed up sump pump, or simply forgetting to turn off the water can result in flooded floors and thousands of dollars in damage.

What if a storm damages both my car and home? Do I have to pay both deductibles?

If your home suffers severe damage, it is likely your car will, too. However, whether you are required to pay the deductibles for both policies will depend on the policies themselves. Read the wording carefully and speak with your agent.

Do I really need personal liability protection on my insurance?

If someone is at your home and is injured, you can be held accountable. The personal liability coverage in your homeowner’s insurance policy is designed to protect you in such an event.

How often does my policy need to be evaluated?

It’s a good idea to examine your policy once per year, particularly if you have acquired any items of notable value or performed any recent renovations. Make sure the amount of coverage you have is enough to match the cost of a full rebuild.

Take Action

Despite being in a high-risk area for extreme weather conditions, premiums in Missouri are not absurdly high. Still, you should be prepared for worst-case scenarios, and this means enough coverage for a full rebuild of your home. Take the time to do an inventory of your possessions, gauge their value, and ensure your policy protects you. If you find it lacking, seek out quotes and find a policy that is both affordable and provides you enough protection for your peace of mind.

Freshome’s Recommendations: State FarmAmicaLiberty MutualFarmersTravelers InsuranceCountry Financial

Compare Homeowners Insurance Rates in Missouri

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: