One of the first tasks you’ll need to complete is purchasing homeowners insurance before closing on a house. New homes are a significant investment, and it’s important to ensure you’re protected.
Missouri homeowners pay well above the national average for home insurance, mainly because the state is prone to natural disasters. This increased risk makes it even more critical to choose the right insurance company.
Best home insurance companies in Missouri
There are plenty of insurance companies that offer coverage to Missouri homeowners. We selected the best based on customer satisfaction and market share in the state.
|Home insurance company||J.D. Power score||Average annual premium|
|USAA||904 out of 1000||$1,936|
|Allstate||882 out of 1000||$2,334|
|American Family||881 out of 1000||$2,881|
|Auto Club Enterprises Ins Grp||889 out of 1000||$1,056|
|State Farm||878 out of 1000||$1,573|
USAA consistently ranks among the best homeowners insurance companies in the nation. The company’s claims satisfaction and overall customer satisfaction is higher than any other company.
Standard homeowners insurance covers most weather-related events common to Missouri, although it’s important to note that flood insurance must be purchased separately. If the policy-holder makes no claims in five years, it’s possible to earn up to 10% off policy premiums. The biggest downside is that USAA’s coverages are only available to military members and their families.
Allstate is one of the top insurance providers for home insurance. It receives above average scores for customer satisfaction, with 882 out of 1000 points in th 2020 J.D. Power property claim satisfaction study.
If you are a first-time home buyer or looking to switch home insurance policies in MIssouri, Allstate might be an attractive choice due to the benefits you could receive. For first-time home buyers, Allstate offers the standard coverage options, as well as educational resources on home insurance for first-time home owners and a first-time home buyers discount. For homeowners looking to switch policies, Allstate offers an early signing discount and a welcome discount, saving you extra on your home insurance.
On average, Missouri homeowners pay more for AmFam home insurance with the average annual premium being $2,881. However, the insurance company received above average ratings for customer satisfaction. Missouri homeowners who sign up with AmFam home coverage receive coverage on fire, falling objects, hail, lightning, smoke, water damage and wind storms or tornadoes, to name a few.
AmFam also offers all of the standard coverage options and more like flooding, sump pump failure and water backup, which are all coverage options that Missouri homeowners may want to consider due to the environmental climate of the state.
Auto Club Enterprises Insurance Group
Auto Club Enterprises Insurance Group is another top home insurance provider in Missouri. Auto Club Enterprises Insurance Group consistently receives above average customer satisfaction ratings, receiving 899 out of 1000 points from J.D. Power in its property claim satisfaction study. In addition to great customer service, discounts, and claims handling processes, Auto Club offers lower than average rates. The average annual premium is $1,056 in Missouri.
Homeowners can also download Auto Club’s free app to manage payments, view documents and submit claims with ease.
State Farm is the number one provider of homeowners insurance in Missouri in terms of market share, covering 25% of Missouri homeowners. It offers a substantial variety of options to add to your basic policy, including additional coverage for earthquakes and coverage for the homeowner’s portion of a loss that affects all homeowner’s association members.
State Farm is regarded as one of the best in overall customer satisfaction, although they rank slightly below average in claims satisfaction. The company offers more than 19,000 agents and user-friendly digital tools to make it easy to get a quote quickly.
Average homeowners insurance cost in Missouri
In Missouri, homeowners pay about 33% more than the national average for home insurance, with the average annual homeowners insurance premium at $1,961. This number is based on a home with valued at $300,000 in dwelling coverage and personal liability with a $1,000 deductible. Depending on the value of your home and your deductible, your rate may look a little different.
Many factors can impact your homeowners insurance premiums, including gender, age, marital status, claims history and credit score. Missouri homeowners also tend to pay higher rates as a result of the state’s weather patterns, which frequently include natural disasters such as ice storms, tornadoes, severe storms and flooding. One of the higher crime rates in the nation also contributes to above-average insurance costs.
Coverage options in Missouri
The most common types of homeowners insurance coverages in Missouri are property damage, additional living expenses, personal liability, and medical payments.
- Property damage helps repair or replace your home and belongings after damage or destruction. Though this coverage may include insurance for some natural disasters, it does not include flood insurance.
- Additional living expenses refer to any costs you incur when you can’t stay in your home because of damage and includes coverage for expenses such as hotels and restaurants. Insurance companies typically cover enough for you to maintain your usual standard of living for a finite period.
- Personal liability insurance protects you if you or your family are the subjects of a lawsuit and you’re required to pay damages.
- Medical payments insurance covers the cost of any medical bills for individuals who are injured on your property, regardless of whose fault it was.
Common causes of home insurance losses in Missouri
Missouri ranked fifth in the nation for the number of tornadoes in 2019, according to the Insurance Information Institute (III). The state experienced 98 tornadoes throughout the year, with three total fatalities. The frequency of tornadoes in states like Missouri can have a significant impact on homeowners insurance premiums.
Severe Storms & Flooding
Missouri residents are subject to an increased chance of severe storms and flooding because of the state’s geography. The state received federal major disaster declarations for flooding in seven of the past ten years.
Criminal activity typically represents a small portion of annual homeowners insurance losses, representing less than eight percent of all claims nationwide in 2018, according to the III. USA Today indicates that Missouri’s crime rate is one of the highest in the country, which can translate to a higher risk of filing crime-related claims.
Frequently asked questions
What is the cheapest homeowners insurance in Missouri?
Missouri residents pay above the national average for homeowners insurance, so while there is less chance of finding a cheap policy, it may not be wise to reduce coverage. Instead, homeowners can decide how much coverage they need and then shop around to find a decent rate.
Do Missouri homeowners insurance policies cover flooding?
Standard homeowners insurance policies don’t cover flooding, even though it’s the most common and most expensive type of natural disaster in the state. Federal law requires homeowners to purchase flood insurance if they live in a high-risk area, but the entire state is at risk of flooding, and homeowners may want to consider purchasing this coverage.
How much homeowners insurance do I need?
Homeowners insurance is intended to help cover any financial losses in the event of a disaster. Ideally, a homeowner should purchase enough insurance to rebuild their home and replace all their belongings in case of total loss.
Standard Homeowners Methodology
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.