Missouri’s homeowners have seen their insurance rates increase at among the highest percentage in the nation over the past decade because of severe weather.
According to a new analysis, homeowners insurance rates in Missouri have increased 76% over the past 10 years, the seventh-largest percentage increase in the nation
“When insurance companies take a loss, they compensate for that loss by increasing rates,” Adam Johnson, a research analyst for QuoteWizard, said. “So when we look at states that are increasing premiums, that’s likely where more severe weather has struck in recent years.”
An average homeowner in Buchanan County pays $1,490 a year for homeowners insurance, according to QuoteWizard. But that yearly number doesn’t account for flood insurance, which many Northwest Missouri residents also own. Those who have flood insurance are paying roughly $2,400 a year, Johnson said.
“And to look at it over a decade to see it go from an average of 700-some dollars all the way up to $1,200 (in Missouri), we could likely see that same pace and that same rate of increase over the next decade, so it is only getting more expensive,” Johnson said.
QuoteWizard’s analysis was conducted using seven name-brand insurance agencies, with quotes based on an $174,348 home, owned by a 57-year-old, both of which are state averages.
According to the company’s analysis, State Farm has over a fourth of Missouri’s market share in homeowners insurance, while American Family has almost 16%. No other agency has more than 10% of the market share.
“It’s just kind of a reality living in that part of the country that has severe weather that’s likely to get worse, insurance rates are likely to get more expensive,” Johnson said.