Missouri's Earthquake Insurance Landscape: Growth and Challenges in 2025
In 2025, Missouri experienced a notable increase in the number of insurers offering earthquake insurance, rising to 37% from the previous year's 32%, as reported by the Missouri Department of Commerce and Insurance (DCI). This shift occurred with three insurers entering the market and one exiting, although the specific carriers were not identified in the data. Such growth highlights the evolving landscape of insurance carriers in Missouri.
Earthquake insurance remains a supplemental purchase for policyholders, not included in standard homeowners' or renters' insurance. It requires either an endorsement or a separate policy, as emphasized by the DCI. This distinction points to the industry's regulatory compliance requirements and the need for consumers to understand their coverage options.
Rise in Earthquake Coverage in High-Risk Zones
Coverage has notably expanded in the New Madrid Seismic Zone (NMSZ), reducing the percentage of insurers without offerings in this high-risk area from 19% to 14%. The 150-mile fault system here poses significant risk management challenges across seven states. Historical data indicates that earthquakes in this region during the winter of 1811-12 were felt over 1,000 miles away.
The U.S. Geological Survey estimates a 25% to 40% chance of a magnitude 6.0 or higher earthquake occurring in the NMSZ over the next 50 years, with a 7% to 10% probability of a recurrence of the 1811-12 scale events. These figures underscore the vital role of proper underwriting and risk assessment in seismic zones.
Economic Impacts and Insurance Penetration
A 2009 FEMA-funded study predicted that a major quake in the NMSZ could result in direct economic losses of at least $300 billion and 86,000 casualties. The geology of this area increases the destruction potential of earthquakes, necessitating robust regulatory compliance and strategic risk management.
Despite increased availability, Missouri's earthquake insurance penetration has declined over the past decade. In 2014, 18.3% of homeowners had earthquake insurance, but this dropped to 10.4% by 2024. Currently, fewer than 20% of residents in 101 of the state's 115 counties hold such coverage, according to the DCI.
Premium Adjustments and Legislative Proposals
Most current policies feature deductibles below 10% of property value, but premiums have significantly increased in high-risk areas. Since 2015, premiums in the New Madrid area have risen by 42%, with average annual premiums for a $200,000 home in Caruthersville at $2,134, compared to $398 in St. Louis and $206 in Kansas City.
Missouri is not alone in facing low earthquake insurance adoption. Following a magnitude 4.3 earthquake in September 2025, California also reported low residential coverage rates. While the California Earthquake Authority has claim-paying capacities exceeding $20 billion, the protection gap in seismically active states remains a concern for regulators.
Additionally, Missouri lawmakers are reviewing a legislative proposal aimed at clarifying insurance payouts and addressing subrogation and overlapping insurance claims. The bill's sponsor believes it will prevent double recovery in insurance litigation, reflecting ongoing efforts to enhance regulatory compliance and protect both payers and providers within the industry.