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8 Best Homeowners Insurance Companies in Missouri of 2022

Learn about the best homeowners insurance in Missouri, and how to find the right one for you. Compare rates, coverage, and more to make an informed decision.
St. Luis, Missouri

Homeowners in Missouri understand the need to protect their homes because it’s their largest asset and may be the most expensive thing they’ll ever buy.

They don’t want their homes to be exposed to fires that can severely damage their properties or burglars that steal their personal property, such as an expensive and irreplaceable engagement ring that has been passed down through generations.

That’s why Missouri residents buy homeowners insurance.

Homeowners insurance is not necessary.

It protects your home from the financial impact of unforeseen or unexpected disasters.

It can cover repairs in your home or rebuild your home if it’s damaged due to fire, smoke, and hail, for example.

It will also cover your personal property, like your furniture, electronics, clothes, and musical instruments.

Whether you live in a big city like St. Louis or a small town like Parkville, consider that flooding, high winds, and hail can severely damage homes across the state.

So, if high winds rip your roof off, your homeowners policy will pay for a new one.

At PropertyNest, we want all Missouri homeowners to have the best coverage they need, so we’ve researched top insurers to take the guesswork out of buying homeowners insurance.

Best Homeowners Insurance Companies in Missouri

  • Lemonade: Best Homeowners Insurance for its Technology & Pricing
  • Liberty Mutual: Best Homeowners Insurance for Flood Coverage
  • Allstate: Best Homeowners Insurance for Being Claims-Free
  • State Farm: Best Homeowners Insurance for Necessary Optional Coverages
  • Travelers: Best Homeowners Insurance Policy for Add-Ons
  • Progressive: Best Homeowners Insurance for Many Discounts
  • Farmers: Best Homeowners Insurance with Different Policy Options
  • Nationwide: Best Homeowners Insurance for Affordability

Lemonade: Best Homeowners Insurance for its Technology

Lemonade homeowners insurance Missouri
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Founded in 2015, Lemonade insurance is very unique, as it is the only company that is entirely online. For tech lovers and for those who want to do all their insurance needs without talking to a human agent, Lemonade can’t be beaten.

You can get a quote, sign-up, file a claim, and purchase add-ons on Lemonade’s website and mobile app.

We love convenience, but we also love an insurance company that is charitable, which is rarely seen in other insurers.

Lemonade’s Giveback program allows customers to donate to a charity that they like.

Here’s how it works:

The insurer uses its claims and lets policyholders donate their unused premiums to a charity they like.

So, you not only make a mark on a cause you care about but also get great rates for homeowners insurance.

Read a full Lemonade home insurance review.

Lemonade Homeowners Insurance Discounts

  • Material Discount - Pay less if your home is constructed from fire-resistant materials, including masonry
  • Fire Protection Discount - Get savings if you have safety measures in your home.
  • Protection Equipment Discount You also save if your home is equipped with protection equipment like burglar alarms.
  • Gated Community Discount - Pay less if you live in a gated community.
  • Bundling Discount - If you bundle home insurance with a pet insurance policy, you pay less.

Lemonade Homeowners Insurance Pros & Cons

Pros
  • Fast premium quote.
  • 10% bundling discount when combining home insurance with pet insurance.
  • Best if you want to do everything online from the comfort of your home.
  • Handles 30% of claims instantly.
  • Intuitive website and app.
  • Pays extra if the cost to rebuild your home exceeds normal amounts due to circumstances such as high labor costs.
Cons
  • Company built for online use only.
  • If unable to find answers regarding the policy, there is no live agent to speak to.
  • Coverage not nationwide.
  • Not as cheap as its quoted rate.
How is Lemonade Homeowners Insurance Rated?
J.D. Power (out of 1,000)870
BBBB+
NAIC Complaint Index1.94

Liberty Mutual: Best Homeowners Insurance for Flood Coverage

Liberty Mutual homeowners insurance Missouri
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Missouri is known for severe weather like floods. Homeowners who live close to the Mississippi River experience damaging floods all season long.

But flood insurance is never covered by homeowners insurance. You have to purchase the policy separately, which will drive up your costs.

Some insurers don’t even offer flood insurance as an add-on because of the catastrophic risks.

So we chose Liberty Mutual because they make it easy for Missouri homeowners to obtain flood insurance through their partnership with the National Flood Insurance Program.

While flood insurance is optional, it’s good to know if you are in a FEMA (The Federal Emergency Management Agency) flood zone.

If you qualify for a federally-backed mortgage loan, it’s mandatory that you have to buy flood insurance.

Read a full Liberty Mutual home insurance review.

Liberty Mutual Homeowners Insurance Discounts

  • Multi-Policy Discount - If you bundle your homeowners insurance with any of Liberty’s other products, you can save money. These include business insurance, auto, and life, for example.
  • Claims-Free - If you’ve gone without a homeowners insurance claim for five years or more with another insurer, you will probably get a discount if you switch to Liberty.
  • Protective Devices Discount - Adding smoke alarms, deadbolts, fire extinguishers, fire alarms, burglar alarms, water leak detection, and shutoff devices, you’ll get a discount because your home will be safe and you are far less likely to make a claim.
  • Newly Purchased Home - You get lower rates if you just bought a new home.

Liberty Mutual Homeowners Insurance Pros & Cons

Pros
  • Flood insurance can be bought at same time as your Liberty Mutual policy due to its partnership with FEMA.
  • Easy to reach customer service: by text, social media, live chat, and phone.
  • User-friendly website and mobile app.
  • Get quote and file claim on website or app.
  • Inflation coverage adjusts coverage each year to offset expected inflation rates.
Cons
  • Some discounts not available in all states.
  • Relatively few extra coverage options.
  • Discounts vary by state.
How is Liberty Mutual Homeowners Insurance Rated?
J.D. Power (out of 1,000)872
A.M. Best - Financial Strength RatingA
BBBA+
NAIC Complaint Index2.37

Allstate: Best Homeowners Insurance for Being Claims-Free

Allstate mutual homeowners insurance Missouri
Editors star rating review
Editor's Rating (5 Stars out of 5)

Allstate is one of the largest insurance companies in the US, having been in operation since 1931.

Due to its size, the company provides comprehensive coverage, low-cost add-ons as well as affordable rates.

There are so many options for you to choose but we found one that rewards homeowners for being responsible.

If you take great care of your home and all your systems and appliances are new or in good working order and you have security measures, you are less likely to make a claim.

So, if you don’t make a claim for a period set by Allstate, you can get a discount.

And if you switched to Allstate and hadn’t filed a claim with your previous insurer, you can get up to a 20% discount on your premium.

In addition, Allstate will also lower your deductible amount for every additional year you stay claims-free and keep your homeowners insurance with the insurer.

Allstate even offers something called “Rateguard.” This add-on allows you to file one free claim every five years without causing your rate to rise.

Read a full Allstate homeowners insurance review.

Allstate Homeowners Insurance Discounts

  • Bundling Discount - Buy two or more policies to save.
  • Early Signing - Sign your Allstate policy a week or more before your old policy expires to get a discount.
  • New Homeowner - New home buyers get a discount, as do those who buy newly constructed homes.
  • New Roof Discount - A new roof will save you some money on your policy.
  • Protective Device Discount - Save if your home is installed with theft or fire protection devices.
  • Responsible Payer - Make your payments on time to save money.
  • Welcome discount - Switch your insurance to Allstate to save up to 10%.

Allstate Homeowners Insurance Pros & Cons

Pros
  • Many discounts available.
  • Many ways to customize your coverage.
  • Easy-to-use and intuitive website.
  • Some unique add-ons like recovery of electronic data and yard and garden repair.
  • RateGuard option allows homeowners to lock in their premium.
  • Optional digital identity-tracking tool.
Cons
  • RCV (replacement cost value) comes at an additional cost.
  • Rates are a little higher than comparable insurers.
  • Flood insurance is only available separately, through FEMA.
How is Allstate Homeowners Insurance Rated?
J.D. Power (out of 1,000)829
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index2.05

State Farm: Best Homeowners Insurance for Necessary Optional Coverages

State Farm homeowners insurance Missouri
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

State Farm has been selling insurance products for over 100 years and is best known for its excellent customer service and high financial strength.

This means that State Farm is more likely to fulfill its financial obligation to you when it comes time to filing a claim.

State Farm homeowners insurance also has several coverage options that can make your basic or standard insurance more comprehensive and more tailored to the policyholder’s needs.

Coverage options varies considerably. Some seem necessary to have, and others are unique to State Farm.

Here are the coverages, but keep in mind that each comes with a cost and your rates will increase.

State Farm Homeowners Insurance Coverage Options

Sewer or Drain Backup

Overflow due to sewers and drains can come unexpectedly and cause water damage to your property or systems. This coverage protects your property.

Identity Restoration

If your identity is stolen or used fraudulently, State Farm will not only clear your name but also reimburse you for any losses incurred.

Business Pursuits Coverage

This covers bodily injury and property damage liability for those in certain occupations.

Adult Family Home

If you hire someone for adult care and the person is injured in your home, any bodily damage, as well as property damage, will be covered.

Nurses' Professional Liability Coverage

Provides liability coverage specifically for registered nurses, licensed practical nurses, and licensed vocational nurses.

Increased Limits for Property Structures

You can get increased coverage to protect or repair detached structures on your property. This includes pergolas and arbors, fences and gates, free-standing garages, and sheds to name a few.

Personal Injury Liability

If you're legally obligated to pay for personal injury offenses, this coverage steps in to defend your liability.

Temporary Rental Coverage

If you rent out your home for special events like a movie crew shooting in your house, a wedding, a party, or a black-tie affair, for example, State Farm will increase the costs of theft and liability coverage.

Systems Coverage

Damaged systems like a water heater, A/C unit, furnace, and a heating unit, to name a few, will be replaced with more energy-efficient models.

New Construction Theft

If your home is under construction, Allstate will reimburse you if there’s theft of building materials that will be used on your new home.

State Farm Homeowners Insurance Discounts

  • Multiple Line Discount - Purchasing various insurance policies from State Farm makes you eligible for auto and home insurance premium discounts and savings.
  • Home Security Insurance Discount - If you install fire, smoke, or burglar alarms, or any other home monitoring system, you may be eligible for a discount.
  • Roofing Discount - If your roof is considered a complete loss due to a covered peril, the insurer offers loss settlement for your roof on a replacement cost basis.

State Farm Homeowners Insurance Pros & Cons

Pros
  • Stellar customer service
  • Ability to pay claims on time.
  • Purchase as much as 1 million of personal liability coverage.
  • Has 20,000 agents across country dedicated to helping customers.
  • Powerful online tools make it easy to get a quote and make a claim.
Cons
  • Very limited lineup of homeowners discounts.
  • Higher rates compared to similar insurers.
How is State Farm Homeowners Insurance Rated?
J.D. Power (out of 1,000)835
A.M. Best - Financial Strength RatingA++
BBBA+
NAIC Complaint Index1.77

Travelers: Best Homeowners Insurance Policy for Add-Ons

Travelers mutual homeowners insurance Missouri
Editors star rating review
Editor's Rating (4 Stars out of 5)

Founded in 1864, Travelers sells homeowners policies in most U.S. states. It offers solid coverage and has fewer than expected consumer complaints. There’s even an option covered by the insurer that will pay to rebuild your home using environmentally friendly materials after a covered peril damages or destroys your house.

But what stands out is that Travelers has an impressive number of add-ons.

Travelers Homeowners Insurance Add-ons

Special Personal Property Coverage

The basic homeowners insurance plan does not cover in full your personal belongings if they are lost or stolen or destroyed or damaged due to a covered peril. This add-on will increase your coverage to pay for replacements or repairs.

Contents Replacement Cost

Also known as replacement cost coverage, this add-on will reimburse you for your property that is stolen or destroyed using today’s prices rather than the depreciated value.

Additional Replacement Cost Coverage

If the cost to rebuild your home after damages are more than your dwelling coverage limit, this add-on will give you more funds so that your house can be paid in full.

Valuables Add-On

A standard or basic policy only pays up to the policy’s limit and will probably not cover in full your valuable possessions. This add-on can raise your coverage limits.

Water Backup and Sump Pump

If drains, sewer lines, or sump pumps in your home back up and cause water damage to your home, this add-on will pay for repairs.

Green Home Coverage

If your home was damaged or destroyed, this add-on pays for you to use environmentally friendly materials when repairing or rebuilding your home.

Identity Fraud

This add-on protects homeowners in the event of identity fraud or if your personal information is stolen and used fraudulently. It will also monitor your credit.

Travelers Homeowners Insurance Discounts

  • Multipolicy - Discount for bundling more than one type of coverage.
  • Claims-Free - If you go without no claims for a certain period, you can get a discount.
  • New Home - If you bought your home within the last 12 months, you can also get aa discount.
  • Protective Devices - Installing home security systems or protective devices like remote cameras, smoke detectors, and fire alarms will give you a discount.

Travelers Homeowners Insurance Pros & Cons

Pros
  • Bundling home with auto gives you a substantial discount.
  • Online quote more thorough than others.
  • Catastrophic response teams during disasters.
  • For those who need a wide range of extra coverage options.
  • Absorbs the costs of a crisis more easily due to being a large and established insurer.
  • Equipment breakdown add-on covers broken appliances.
  • Decreasing deductible designed to lower your deductible $100 each year that you renew your policy.
  • Can file claims and inquire about billing or policy questions 24/7 by calling customer service center.
Cons
  • Replacement cost (RCV) comes with an extra cost.
  • No wind damage coverage even though windstorms are considered covered perils.
  • May have to complete buying a policy online via phone.
How is Travelers Insurance Rated?
J.D. Power (out of 1,000)800
A.M. Best - Financial Strength RatingA++
BBBA
NAIC Complaint Index3.88

Progressive: Best Homeowners Insurance for Many Discounts

Progressive homeowners insurance Missouri
Editors star rating review
Editor's Rating (4 Stars out of 5)

Progressive has been in the insurance business since the 1930s.

It offers a lot of insurance policies, including homeowners and renters, condo insurance, auto policies for a wide range of vehicles, and even mobile home insurance that’s usually excluded from similar insurers.

We chose Progressive as one of our top-rated insurers due to the many discounts it offers policyholders. Taken together, the discounts can make a huge dent in your premiums.

Progressive Homeowners Insurance Discounts

Here are the most prominent discounts:

  • Multi-Policy Discount - Bundle home and auto or home and boat, or home and RV will get you a 5% discount.
  • Safety and Alarm - If you install burglar and fire alarms, you’ll get a discount.
  • Quote in Advance - If you get a quote at least ten days before your policy begins, you’ll lower your rate.
  • New Purchase - If you purchase a new home (it doesn’t have to be newly built), you can get a discount.
  • New Home Construction - The newer your home, the larger discount you could earn.
  • Receive Documents Electronically - If you opt to get policy documents via email rather than paper, you’ll qualify for a discount.
  • Home Security - If you (or a professional) install video surveillance cameras and home security systems like door and window sensors in your home, you’re eligible for a discount.

Progressive Homeowners Insurance Pros & Cons

Pros
  • Online comparison shopping tool.
  • Online quote tool can calculate an accurate replacement cost for your home.
  • Online HomeQuote tool to compare quotes from multiple providers of homeowners insurance.
  • Website has online chat to answer questions.
  • Offers sinkhole insurance and landslide and mudslide insurance.
  • Available coverage for water backup that damages home and property within.
  • Available nationwide.
  • Single deductible available for car insurance customers who purchase homeowners insurance.
Cons
  • Operates as broker, underwritten by third-party partners.
  • Filing claim may mean you have to go through a third-party underwriter rather than Progressive.
How is Progressive Homeowners Insurance Rated?
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index1.66

Farmers: Best Homeowners Insurance with Different Policy Options

Farmers Homeowners insurance Missouri
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Farmers is one of the best-known home insurance companies in the country. The insurer offers comprehensive home coverage alongside umbrella insurance, condo, renters, mobile, and manufactured homes insurance, and even vacation home and vacant home insurance policies, to name a few.

Farmers is an excellent choice if you have specific needs in mind, like if you need only the most basic policy, or if you need more enhanced coverage.

Farmers offer three tiers of coverage that allow for flexibility and personalized customization, and which also allows you to buy only what you need so you can save money.

Who wants to pay extra if you’re not going to use a particular coverage?

The three tiers include a lower cost option that includes everything in a standard policy, a slightly more expensive but comprehensive option, and a high-cost option that includes everything the lower options have plus enhanced coverage limits.

Each policy builds on the one before it.

Farmers Homeowners Insurance Coverage Policies

Standard

The standard was created with new homeowners in mind and includes the six standard coverages, as well as the option to purchase add-ons such as replacement cost coverage or increased dwelling coverage.

Enhanced

Farmers’ middle coverage tier includes the standard coverage in addition to extended coverage limits and extended replacement cost coverage for your personal belongings (i.e. new replacement without depreciation) and your roof and the ability to increase your dwelling coverage by up to 150%.

Premier

This is the most comprehensive coverage tier. It includes all the offerings in the standard policy and increases coverage limits for valuables like jewelry. It also has a good number of endorsements and add-ons to customize your policy, including guaranteed replacement cost coverage to cover the structure of your home (but only if your home meets certain requirements).

Farmers Homeowners Insurance Discounts

  • Safety and Security - If you have a special fire alarm that connects to your local fire department, or a security system with an outdoor signal that can communicate to local authorities, you’ll get a discount.
  • No Smoking - You get a discount if you don’t smoke or don’t allow smoking in your home. That’s because smoking increases the risk of a house fire.
  • Bundling - If you bundle two or more policies with Farmers, you’ll save money.
  • Claims-Free discount - If you never make a claim for three years or more, you’ll get a discount.

Farmers Homeowners Insurance Pros & Cons

Pros
  • Declining deductible: Earn $50 toward deductible every year policy is current.
  • Making no claims in five years guarantees premium won’t increase the next time you do file a claim.
  • Tiered coverage allows homeowners to customize a policy to meet their needs.
  • Available nationwide.
  • Low level of homeowners insurance complaints.
  • Offers both extended and guaranteed replacement cost options.
  • No banned dog list.
Cons
  • Fewer endorsements than competitors.
  • Expensive compared to competitors.
  • Lower financial ratings than competitors.
How is Farmers Insurance Rated?
J.D. Power (out of 1,000)839
A.M. Best - Financial Strength RatingA
BBBA-
NAIC Complaint Index0.56

Nationwide: Best Homeowners Insurance for Affordability

Nationwide homeowners insurance Missouri
Editors star rating review
Editor's Rating (4 Stars out of 5)

Nationwide is one of the ten largest home insurance companies in the US. It is noted for its outstanding coverage that would cost you extra when compared to a similar insurer.

It is also the most affordable policy on our list. The average annual homeowners insurance cost based on a house with dwelling coverage of $300,00 is $1,725 per month or $145 per month.

Nationwide is also known for its diversity of coverages and customizations, from unique or special add-ons to make your policy more comprehensive to discounts that can lower your already low rate.

Nationwide Homeowners Insurance Notable Coverage Options

  • If your roof is damaged by a covered peril, Nationwide will rebuild your roof with stronger materials.
  • The insurer will pay to replace brand new belongings in full or restore damaged belongings
  • Ordinance of law pays to bring your home up to current building codes if your home needs to be rebuilt or repaired after a covered peril. This comes with no cost to you.
  • The insurer will raise your dwelling coverage up to 20% above your policy limit.
  • If you update your plumbing, electrical systems, and HVAC, you’ll get a discount.
  • Offers flood insurance and earthquake insurance as separate deductibles. (some insurers don’t offer these policies).

Nationwide Homeowners Insurance Discounts

  • Multi-policy discount when bundling home with auto.
  • If you install fire and burglar alarms, you get a protective device discount.
  • If you’ve never made a claim, you can get a discount.
  • If you improve your home’s electrical, heating, and cooling systems, you’ll save.
  • If you purchased your home within the past year, you get a home purchase discount.
  • If you live in a gated community, or entrance is only available via security guards, you’ll also get a discount.

Nationwide Homeowners Insurance Pros & Cons

Pros
  • Cash-out option if house is destroyed and you decide not to rebuild it.
  • Unique accidental breakage coverage up to $50,000 for special items such as crystal, statuary, and sculptures.
  • Equipment breakdown coverage for appliances and household systems.
  • No banned dog list.
  • Credit card coverage helps pay for unauthorized transactions or ATM activity, along with reimbursement for forged checks.
  • Valuables Plus, a.k.a. additional personal property insurance, provides higher coverage levels for jewelry, art, and other valuables that might exceed the limits of a standard policy.
  • Provides a lot of services, including life insurance, pet insurance, a wide range of vehicles, and coverage for weddings and more.
Cons
  • Despite its name, Nationwide is not actually nationwide and only covers 44 states.
  • Complaints are above the industry median.
  • Add-ons can make your rate cost more.
  • Get quote or pay policy via mobile app, but most of app is dedicated to auto insurance policies.
How is Nationwide Insurance Rated?
J.D. Power (out of 1,000)812
A.M. Best - Financial Strength RatingA+
BBBA+
NAIC Complaint Index0.88

How We Ranked and Picked the Best Homeowners Insurance Companies in Missouri

The following criteria had the biggest impact on which insurance to put on our list.

Price

Owning a home can be expensive, so we looked for insurers with the most affordable rates to keep your premium down.

Discounts

In our research in finding the best insurers in Missouri, we chose those that had the most discounts. Discounts, besides comparing quotes, can keep your costs down and will save you money.

Coverage

The basic or standard homeowners insurance policy may not have enough coverage to protect your valuables, so we looked at other ways in which to raise your personal property limits.

We looked almost exclusively at endorsements or riders, as each allows you to select coverage limits high enough to protect your belongings in full.

Customer Reviews

We looked at many sites that offered customer reviews to narrow down our options. The ones with the most positive reviews were more favorable to us.

Technology

We looked at a company’s website and app to see if you can manage most of your insurance needs electronically or if both were easy to use even for the technophobe.

If a company allows you to get a quote, buy a policy, and make a claim online, to name a few, we put that insurer on our list.

How Homeowners Insurance Work?

Homeowners insurance will pay to have your home rebuilt and will replace your belongings due to a covered peril.

A covered peril includes theft, burglary, vandalism, and natural disasters such as fires, hurricanes, high winds, and snow buildup, to name a few.

If you don’t have homeowners insurance, you will have to pay out-of-pocket for your destroyed belongings.

Homeowners insurance protects your home—and the contents within—from the financial impact of unforeseen or unexpected disasters.

Is It Mandatory to Buy Homeowners Insurance in Missouri?

You aren’t required to buy homeowners insurance and it’s not mandatory by law.

But most homeowners have a home mortgage; in that case, your lender will likely require a policy to protect its investment.

What is Covered in Homeowners Insurance?

For a basic insurance policy, here’s what is covered.

Dwelling

If your house is damaged or destroyed due to a fire or a natural disaster, or a covered event that you could not have predicted, your insurer will cover the cost of rebuilding your home.

Liability

If you cause bodily injury or property damage to another person unintentionally or through neglect, your insurance will pay for any medical bills the injured person needs, and legal fees and legal representation if you’re sued.

Medical

This policy pays if someone is injured on your property and needs medical treatment, regardless of who’s at fault. It also pays if you, a family member, or a pet like a dog injures someone elsewhere.

Personal Property

This pays to repair or replace personal belongings that are stolen or damaged in a covered peril whether that happens in your home or on a trip.

Loss of Use

If your home is destroyed and you can’t possibly live there due to health reasons or because it’s simply unhabitable, loss of use pays for hotel stays and having meals at restaurants.

What is Covered in a Standard Homeowners Insurance Policy?

The following natural disasters are covered perils:

  • Fire
  • Wildfires
  • Lightning
  • Windstorm and hail damage
  • Smoke damage
  • Volcanic eruption
  • Explosion
  • Weight of ice, sleet, or snow
  • Hurricanes
  • Water damage unrelated to natural floods

These are also covered perils:

  • Vandalism and malicious mischief
  • Damage from an aircraft, car, or other vehicle
  • Theft and burglary

What Natural Disasters are Not Covered in a Standard Homeowners Insurance Policy?

The two most common ones are floods and earthquakes. All homeowners insurance policies exclude floods and earthquakes.

Earthquakes

You can get earthquake coverage as an add-on or as a separate policy to your homeowners insurance.

Floods

While an insurer may cover water damage if your roof leaks due to a hurricane, it won’t cover flood damage from the same hurricane.

So, if you experience a property loss due to water damage caused by flooding, you will not be covered at all.

Missouri residents experience extreme flooding.

In fact, over 280,000 properties are at risk of flood damage in Missouri.

You can add flood insurance as an endorsement to your policy. But look at what the insurer covers. Some companies do not have or offer a flood policy.

Because Missouri residents are at risk from flooding, it’s wise to get flood insurance so you are covered.

What Factors Determine My Insurance Rate?

Many factors that can lower your premium or raise it.

For your home, square footage is considered, especially when it involves calculating replacement cost, and the age of your home as well as its location is also considered.

Even your personal information plays a part in your rate. For example, marital status, credit score, and your dog’s breed could affect the amount you’ll pay.

In addition to the below, insurers look at how near you are to flood zones or earthquake faults.

Here are some of the most common factors that can determine your rate.

Location

The area where you live affects your premium. If you live in a safe neighborhood with a low crime rate, and your home is close to a fire hydrant or a fire station, you’ll pay less.

The closer you are to a fire station, the greater the likelihood a fire can be quickly extinguished before it becomes out of control.

Age of Home 

Older homes are more likely to need improvements. You’ll pay a higher rate if your systems and appliances are out of date and if you have never updated your HVAC and plumbing systems.

Also, the building materials used in older homes may not conform to modern building standards. This means that additional work may be needed, which will drive up your premium.

Deductible

Your deductible is the amount you agree to pay out of pocket if you file a claim. If you choose a higher deductible, this will decrease your premium.

Doing so means that your insurer will pay less if you file a claim, which can lead to a lower premium.

Coverage Options

Add-ons, endorsements, and increasing your personal property limits can help if, say, your precious artwork was stolen during a burglary. However, every coverage you add to your standard policy will cause your rate to rise.

Credit Score

If you have a high credit score, the insurer will assume that you are more likely to pay your premium on time each month, and your rate will drop.

But if you have poor credit, the insurer will perceive that you are an at-risk person who will more likely miss payments or file claims, which will raise the cost of your premium.

Learn how to check your credit score.

Claims

If you file a claim, the insurer will believe you are more likely to make another claim and will increase your rates to keep costs down.

Even if you change insurance companies, your new provider can see your past claims and may charge you accordingly.

Several factors determine your premium and which in some cases you can’t control. Your home and your personal information are how insurers assess your premium.

Do I Need Extra Insurance?

Homeowners can include benefits to their coverage that were previously excluded from the basic or standard policy.

You need extra coverage if you have expensive items like jewelry or artwork.

If these valuables are stolen or damaged, the standard insurance will cover them but will only pay up to the policy’s limit.

In addition, a homeowners policy may put a cap or limit the amount of coverage the policy will provide for high-value or rare items, or have low limits for insuring expensive property.

So, if your personal property limit is $2,000, for example, and your engagement ring costs $2,500, you’ll have to pay the difference, which is $500.

If you have expensive items that need coverage, the standard policy will probably not cover them in full.

What is the Best Way to Cover Your Valuables?

The best way to get fully protected is to add an endorsement or rider to your personal property coverage.

A rider allows policyholders to increase the overall coverage of their home insurance for particular categories.

An endorsement is basically the same thing as a rider, and both are used interchangeably.

Both an endorsement and rider offer higher limits for your property, broader incident coverage, and total replacement cost value.

With these policies in place, you alone can control your coverage limits.

For example, what if your coin collection costs $3,500? You can set your rider with a limit of at least $3,500 to ensure you will be paid in full if your collection gets damaged, destroyed, or stolen.

So, If you purchase an endorsement, you should always select coverage limits high enough to protect your belongings in full.

Extra coverage will broaden the scope of your policy but remember that each endorsement will cost you and impact the rate of your premium.

On the plus side, you get rid of your deductible if you make a claim that your coins were damaged. This means you don’t have to pay out-of-pocket first before your insurance kicks in.

This is not the case with a standard policy, where you must pay the deductible before coverage starts.

If you want full and complete protection from anything that could happen to your high-priced items, then purchasing an endorsement is a must for you.

Lower coverage limits might save you money on your premium, but they might also leave you with insufficient coverage when you need to make a claim.

The reason you should purchase a rider or endorsement is that you get the original amount you paid for your engagement ring or the coin collection.

What Are the Types of Homeowners Insurance?

There are two policies you can choose: actual cash value (ACV) or replacement cost value (RCV)

If your home is damaged, replacement cost will pay the actual cost of rebuilding your home even if there are increases in inflation, zoning updates, labor, materials, or other expenses.

And if your personal property is damaged, RCV will pay for your items in full and at today’s prices.

On the other hand, if your belongings are stolen or destroyed, ACV will not replace them at their full cost but rather at their depreciated value.

RCV will pay you in full while ACV will pay you a depreciated cost.

How Can I Lower My Premium?

There are two major ways in which you can lower your premium.

The first is to get discounts from your insurer.

For example, if you bundle homeowners insurance with auto from the same company, you can get a multi-policy discount.

If you install security features in your home, such as home security systems and burglar alarms, you’ll get a lower rate because then your home will be less susceptible to a break-in.

Also, if you replace your aging appliances with new ones (like a refrigerator) your insurer will reduce your rate because new appliances are less likely to break down.

The second is shopping around.

You should get insurance quotes from several insurers so you can compare rates, coverage, discounts, and additional features of each company to find the best insurance that suits your needs.

It’s recommended you should get at least 3 or 4 quotes. You can easily do that by using a company’s website.

To get the best deal on a homeowners insurance policy is to apply for discounts that the insurer has and compare quotes from several companies.

How Much is Homeowners Insurance in Missouri?

The average annual premium for homeowners insurance in the United States is $1,405 per year or about $115 per month.

In Missouri, the average price of home insurance is $2,375 per year or $195 per month

Missouri’s rates are higher than the national average.

That’s because Missouri experiences a high level of natural disasters.

In particular, high winds and hail damage are factors.

But the natural disaster that occurs frequently in Missouri is severe flooding.

You should thus shop around. For example, Nationwide’s premium, which is $1,724 per year or $143 per month, beat the Missouri average.

In our search for the most affordable policies, Allstate and Farmers have similar rates compared to Nationwide, although both are slightly higher than Nationwide.

The cost of homeowners insurance in Missouri is high due to flooding, but if you compare quotes, you may find an insurer that fits your budget.

Frequently Asked Questions

What does a homeowners insurance policy typically cover?

Homeowners insurance typically covers: your dwelling, liability, medical, personal property

Is homeowners insurance required by law in Missouri?

You aren’t required by law to buy homeowners insurance, but most homeowners have a home mortgage; in which case the lender will likely require a policy to protect its investment.

How much is homeowners insurance in Missouri?

In Missouri, the average price of home insurance is $2,375 per year or $195 per month.

How can I lower my homeowners insurance premium?

There are two major ways in which you can lower your premium. The first is to get discounts from your insurer. The second is to shop around.

What factors determine the insurance premium rate?

Location, deductible, age of home, coverage options, claims, and credit score