Missouri Disaster Mediation Act and Stronger Homes Act Support Homeowners

The House Insurance Committee held a public hearing on April 13 to evaluate a legislative proposal aimed at assisting homeowners with insurance claims in disaster situations. Spearheaded by Representative David Casteel of High Ridge, House Bill 3328 intends to introduce the “Missouri Disaster Mediation Act” and the “Missouri Stronger Homes Act,” while amending existing home insurance regulations.

Rep. Casteel stressed that the bill aims to prepare Missouri homeowners within the insurance market for future disasters, promoting the construction of more resilient homes. The "Missouri Disaster Mediation Act" provides a platform for homeowners to engage with insurers and mediators if claim disputes arise, facilitating efficient and amicable resolutions over disaster claims.

Under this proposed legislation, homeowners must request mediation within 60 days following a claim denial. Insurers are required to inform clients of their mediation rights after a disaster-related claim is made. Homeowners initiate the mediation request while insurance companies cover the costs for an independent mediator.

“The mediation program is designed to offer a quicker, less costly, informal, and nonadversarial discussion forum between the insurance company and the homeowner regarding their insurance claims,” stated Steven Marion, legislative director for the Missouri Department of Commerce and Insurance, offering supportive testimony.

The "Missouri Stronger Homes Act" intends to provide grants for residents to retrofit homes against natural disasters. Proposed funding for these retrofits will come from the Missouri Stronger Homes Fund, receiving an annual $12 million allocation from the Insurance Dedicated Fund—funded by fees insurers pay to the Department of Commerce and Insurance for regulatory compliance.

Rep. Casteel emphasized that this funding mechanism will ensure a steady, long-term resource for enhancing the resilience of homes before and after disasters. Concerns arose about the bill’s impact on St. Louis residents, following a tornado in May 2025. Rep. Casteel is confident that the mediation program will address issues from the St. Louis event. Additionally, the bill includes regulation changes for public adjusters, though this section remains under development.