Importance of Earthquake Insurance in Missouri Emergency Preparedness

The Missouri Department of Commerce and Insurance (DCI) is underscoring the critical role of earthquake insurance as part of residents' emergency preparedness strategy, given that most standard home and rental policies exclude this coverage.

Angela Nelson, DCI Director, highlighted the financial dilemmas faced by many residents when deciding on earthquake insurance. She acknowledged that families often prioritize day-to-day expenses, which can make budgeting for additional insurance premiums challenging. Despite these considerations, the potential risk posed by seismic activity in Missouri makes preparation essential. Nelson emphasized, “It is not a matter of if an earthquake will happen, but when. If the worst happens tomorrow, what is your plan to rebuild if you don’t have insurance?”

Understanding Earthquake Insurance in Missouri

The DCI reports that less than 20% of homes in 98 out of Missouri's 115 counties currently have earthquake insurance. As residents evaluate this coverage option, several key practical considerations can guide their decision-making:

• Total Replacement Cost: Assess whether the coverage will fully cover rebuilding expenses.
• Policy Limits: Ensure the policy limit is adequate for potential damages.
• Deductibles: Examine the costs payable upfront before insurance kicks in.
• Coverage Exclusions: Understand what is not covered by the policy.

To assist residents, the DCI offers resources and guidance through their Consumer Hotline at 800-726-7390, with further details available on their official website.