Prepare for Earthquake Risks in Missouri with Insurance
As seismic risks loom in Missouri, the Department of Commerce and Insurance (DCI) emphasizes earthquake preparedness for the New Madrid Seismic Zone by advocating for earthquake insurance as a key financial safeguard.
With standard insurance policies excluding earthquake damage, Missouri's demand for specialized disaster coverage is underlined by DCI Director Angela Nelson's caution that it is not a matter of if, but when, an earthquake will strike. Homeowners are urged to secure plans for rebuilding if the worst were to happen, emphasizing the essential nature of having appropriate insurance coverage.
Insurance Trends and Challenges
A DCI report indicates a concerning decline in earthquake insurance uptake, with homeowner coverage around the New Madrid fault line shrinking from 18.3% in 2015 to a mere 10.4% by 2025. This gap persists statewide, where coverage remains below 20% in most counties. Although Missouri experienced a slight drop of 1.5% in average annual premiums from 2024 to 2025, the financial strain on homeowners in seismic zones intensifies as inflation drives construction costs and premiums upward.
Mitigating Rising Costs
Amid inflation, premiums increased by 4.6% in the New Madrid area during 2025 and 5.6% elsewhere, propelled by rising construction costs and reinsurance expenses. However, more insurers in the New Madrid region now offer flexible coverage options, allowing deductibles of 10% or less of a property's value. Director Nelson recommends consulting with agents to identify lower deductible policies that fit homeowners' financial capacities. Tailored coverage solutions and deductible flexibility are vital for those worried about affordability.
| Region | Coverage Drop (2015 to 2025) | Premium Increase (2025) |
|---|---|---|
| New Madrid | 18.3% to 10.4% | 4.6% |
| Statewide | Below 20% in most counties | 5.6% in high-risk areas |
For residents seeking guidance, DCI's Consumer Hotline and official website offer assistance and resources to navigate these insurance challenges. The department remains committed to safeguarding consumer interests across regulated sectors, prioritizing informed decision-making for Missourians in high-risk areas.