Earthquake Insurance in Missouri: Why People Are Taking Another Look
How often do you think about earthquakes in Missouri? For most people, the answer is “not often”—or maybe even never. After all, it’s been more than 100 years since the last major earthquake rocked the New Madrid Seismic Zone. Yet, earthquake insurance is suddenly back in the conversation. Why? Rising risks, skyrocketing premiums, and the sense that you don’t want to be caught unprepared if disaster strikes.
Here’s the kicker. The average annual cost of earthquake insurance in Missouri? $569. Just 20 years ago, you could snag coverage in places like New Madrid for $57 a year. That’s not just inflation—that’s a seismic shift (pun fully intended).
Why Has Earthquake Insurance Gotten so Expensive?
A few reasons. Inflation is part of it, sure, but the big driver is risk assessment. Insurance companies are using new, advanced models to predict just how much trouble a major earthquake might cause. And it’s no small amount. We’re talking about potential billions in damages, which means companies have to charge more to stay solvent.
Another factor? Fewer people are buying policies. When low-risk customers drop out, insurers are left with higher-risk policyholders. That drives up premiums even more. It’s a vicious cycle.
Is the New Madrid Seismic Zone Really That Big of a Risk?
You bet it is. The New Madrid Seismic Zone isn’t just some minor fault line. It’s one of the most active seismic areas in the U.S. Back in 1811-12, it produced a series of earthquakes so powerful that they caused the Mississippi River to run backward for a time.
Is it likely we’ll see something like that again anytime soon? Experts estimate a 7-10% chance of a major quake in the next 50 years. That might sound small, but, well, would you roll the dice on your house crumbling if you could afford to be protected?
Why Would Anyone Buy Earthquake Insurance, Anyway?
Good question. Because, honestly, many people aren’t. Only about 11% of homes in the New Madrid region had policies in 2021, down from over 60% in 2000. That’s a massive drop in just two decades. For most folks, it’s a combination of cost and a sense that the risk isn’t immediate.
But for others? Peace of mind. Here’s the thing: standard homeowner’s insurance doesn’t cover earthquake damage. At all. Without a specific policy, you’re paying for all repairs or rebuilding out of pocket. For families in high-risk zones, that’s a nightmare scenario.
And for some, it’s not optional. If you’ve got a mortgage on a home in a particularly risky area, your lender might require earthquake insurance.
What’s Being Done to Help People Get Covered?
Not much. Some experts think Missouri needs a state-backed insurance fund to subsidize costs. Others suggest requiring insurers to offer earthquake coverage, like in California. But so far, it’s all talk, no action.
Legislators are hearing pitches from experts who want to fix what they call a “market failure.” The idea is that if more people could afford earthquake insurance, it’d spread out the risk and bring prices down. Makes sense, right?
Why Are People Taking Another Look Now?
Honestly, fear. Even the small chance of a quake makes people uneasy. Add in rising home repair and construction costs, and it’s easy to see why some homeowners are saying, “You know what? Maybe I should look into this.”
Plus, there’s a lot of buzz about the risks these days. Ads, campaigns, reminders that earthquakes aren’t just a California thing… it’s starting to sink in. Gov’t officials are saying the chance of a major quake in Missouri is as high as 40% in the next 50 years. That’s no joke.
What Should You Look for in a Policy?
If you’re thinking about getting earthquake insurance, here’s the deal. Look at more than just the premium (though $569 a year is a lot!). Pay attention to deductibles, which are often much higher than regular homeowner’s insurance. And check if your home’s structure is even earthquake-resistant. Some older homes might be better off with a retrofit before even worrying about insurance.
At the end of the day, it’s all about weighing the risks. Do you roll the dice and hope the next 50 years are quiet? Or do you prepare, just in case? Whatever you decide, one thing’s clear—earthquake insurance is no longer something people in Missouri can ignore. If the ground shakes, you’ll want to be standing on solid financial ground.