Mayor Spencer’s Big Move: Waiving Insurance Holdbacks
Missouri’s been through it. Tornadoes ripped through the state, leaving destruction in their wake. But there’s a glimmer of hope. Mayor Cara Spencer has stepped in with a bold executive order to help victims rebuild faster.
On June 3, 2025, tornadoes devastated parts of Missouri. Independence, De Soto, and surrounding areas were hit hard. Trees snapped like matchsticks. Homes were battered. Lives turned upside down. In De Soto alone, over 50 structures were damaged, with 12 completely destroyed. The tornado’s path stretched for 7 miles, leaving chaos and heartbreak behind.
The Executive Order
Mayor Spencer’s order waives the 25% insurance holdback for tornado-damaged properties. What does that mean? Normally, insurers hold back a quarter of the payout until repairs are done. It’s a safeguard to ensure the money is used for rebuilding. But for victims, it’s a roadblock. They need cash now, not later. This waiver changes the game.
Imagine your home is gone. You’re staring at rubble. You’ve got insurance, but only 75% of the funds are released. The rest? Held hostage until you rebuild. It’s frustrating. It’s slow. Mayor Spencer’s order cuts through the red tape. Victims can access their full insurance payouts immediately. No waiting. No hassle.
The Mortgage Company Problem
But here’s the catch. Even with the holdback waived, many homeowners might still face delays. Why? Because mortgage companies often hold insurance checks in escrow until repairs are verified. It’s their way of ensuring the property is restored. For homeowners, it can feel like another hurdle when they’re already struggling to recover.
Will this executive order address that? Not directly. The waiver applies to insurers, not mortgage companies. Homeowners may still need to work with their lenders to release funds. It’s a step forward, but not the full solution. Victims are encouraged to communicate with their mortgage companies and push for faster releases. Every bit helps when you’re trying to rebuild.
Why Mortgage Companies Hold Checks
Here’s how it works. If you have a mortgage, your lender is listed as a co-payee on your insurance check. Why? Because they have a financial stake in the property. They want to make sure the money is used to repair the home, not for other expenses.
Once the check is issued, it’s sent to the mortgage company. They deposit it into an escrow account. Then, they release the funds in stages as repairs are completed. It’s a process. And it can be slow.
The Hardest-Hit Areas
De Soto was one of the worst-hit areas. Big River Heights Road and Wilson Hollow Road bore the brunt of the storm. Independence saw winds up to 100 mph, snapping trees and damaging homes. Jefferson, St. François, and Washington counties were also in the tornado’s path. The damage is staggering, and the road to recovery will be long.
What’s Next?
The Missouri Department of Commerce and Insurance is notifying insurers. They’re being told: comply with the waiver. Victims are urged to contact their insurance providers to ensure they receive their full payouts. If there are issues, they can report non-compliance to the state.
This isn’t just about money. It’s about hope. It’s about rebuilding. It’s about neighbors helping neighbors. The waiver is a step forward. But the road to recovery? It’s long. It’s hard. But Missourians are tough. They’ll get through this.