Missouri Homeowners Insurance Holds Steady Amid National Crisis Concerns

By Dennis Norman, on April 18th, 2024

The St. Louis Business Journal today published an article with the headline “A hidden cost of homeownership is mounting — and approaching crisis levels”. The article began with “homeowners across the country are facing an insurance crisis — and it’s driving up housing costs”, and then quoted a study indicating that 72% of U.S. homeowners said the cost of their homeowners insurance had increased over the past year. Well, sometimes it’s better to not have ocean views, mountains, and the like, and to be situated in the middle of the country like we are here in St. Louis—and this would be one of those occasions.

Homeowners Insurance Not Projected to Increase in Cost in 2024:

According to a study by Insurify, home insurance rates are expected to rise by 6% this year after a 20% increase over the last two years. However, the study indicates that in Missouri, the average cost of homeowners insurance in 2023 was $2,706 and for 2024 it’s projected to be $2,697. So, no increase in Missouri and actually a few bucks in savings.

Within Missouri, the cost of insurance varies by location. Here are a few examples of the average monthly quote for homeowners insurance for several cities within Missouri:

Florissant – $206
St. Charles – $186
St. Joseph – $213
St. Louis City – $232
Springfield – $224

There are many factors that come into play regarding the cost of insurance beyond the location, such as the home’s replacement cost. This figure represents the cost to rebuild your home using similar materials and is influenced by several factors, including the age of your home, its square footage, architectural style, and the local rebuilding costs in your area. Coverage options also play a vital role. Homeowners who opt for additional coverages, such as protection for sewer lines, natural disasters, and high-value possessions, will generally see an increase in their insurance rates.

This is why it’s important to have a knowledgeable insurance agent and preferably one with access to coverage from many different companies to help you select the right company and coverage for your situation. A good place to start is STLBestInsuranceAgent.com, where you can find many helpful short videos about homeowners insurance, particularly from the standpoint of a homebuyer.