Haris Ashley
Missouri homeowners have witnessed a surge in home insurance prices in recent years, with an increase of 8.7% in 2023 and a further 16.4% in 2024. The average annual cost of home insurance in Missouri is $3,290, 56% more than the national average. The cheapest home insurance providers in Missouri are AAA and Nationwide. AAA offers the cheapest rates in most cities, including Columbia, Independence, Kansas City, Springfield, and St. Louis. However, Nationwide offers the lowest rates for newer homes, at $54 per month or $650 per year. USAA is also one of the cheapest insurers in the state, with premiums averaging $1,718.72 annually, but it is only available to military members and their families.
| Characteristics | Values |
|---|---|
| Cheapest Home Insurance in Missouri | AAA, Nationwide, State Farm, Allstate, USAA, Travelers, American Family |
| Cheapest for new homes | Nationwide |
| Cheapest for high-risk fire areas | AAA |
| Cheapest for military members and their families | USAA |
| Average annual cost of home insurance in Missouri | $2,264.73, $2,441, $3,031, $3,290, $3,387 |
| Average annual cost of home insurance in St. Louis and Kansas City | $3,290 |
| Average annual cost of home insurance in Columbia | $3,020 |
Explore related products
$4.34 $5.79
$5.43 $6
What You'll Learn
Cheapest providers: AAA, Nationwide, State Farm, Allstate, and USAA
Missouri does not require homeowners insurance by law, but if you have a mortgage, your lender will likely require you to have certain coverages until you own the property outright. The cost of homeowners insurance in Missouri depends on factors such as the location and value of your home. Understanding these factors can help you find the best deal.
According to US News, the cheapest homeowners insurance providers in Missouri include AAA, Nationwide, State Farm, Allstate, and USAA. Here's a more detailed breakdown of each provider:
AAA
AAA offers the cheapest rates in most Missouri cities, including Columbia, Independence, Kansas City, Springfield, and St. Louis. It provides the most affordable coverage for those in high-risk fire areas, with potential savings of up to 81%. However, if you have a newer home, Nationwide may offer better rates.
Nationwide
Nationwide offers the lowest rates for newer homes in Missouri, starting at $54 per month or $650 per year. They also provide various discounts, such as bundling home and auto insurance, which can save you up to 20%. Additionally, Nationwide offers free annual consultations to help you determine the right coverage options for your budget and situation.
State Farm
While not specifically mentioned as one of the cheapest providers, State Farm is included in US News' list of the best homeowners insurance companies in Missouri.
Allstate
Allstate is one of the cheapest homeowners insurance companies in Missouri, with sample premiums averaging $3,015.20 per year. They offer various discounts, including multi-policy, loyalty, protective devices, and claim-free. Other structures coverage comes standard, and you can add on identity theft protection, valuable possessions, water backup, and personal property replacement.
USAA
USAA is the cheapest insurer in Missouri, with premiums averaging $1,718.72 annually. They offer various discounts, including multi-product, loyalty, protective device, and claims-free discounts. Other structures coverage and identity theft protection come standard, and you can add on valuable possessions, water backup, and personal property replacement. However, USAA coverage is only available to qualified active-duty military members, veterans, and their families.
While these companies offer low rates, it's important to evaluate their customer service reputation and coverage options to ensure they meet your specific needs.
Get Homeowners Insurance Quickly and Easily
You may want to see also
Explore related products
Discounts and add-ons
When it comes to discounts and add-ons for homeowners insurance in Missouri, there are several factors that can influence the cost of your coverage. Here are some key considerations:
Discounts
- Bundling policies: One of the most effective ways to reduce your insurance costs is to bundle your home and car insurance policies with the same company. This can often lead to significant savings, as companies offer substantial discounts for bundling.
- Multi-policy discounts: Some companies, like State Farm, offer discounts if you have multiple types of policies with them, such as homeowners and auto insurance.
- Loyalty discounts: Certain insurers, including State Farm and USAA, reward customer loyalty with reduced rates.
- Claims-free discounts: If you have a history of being claims-free, some companies like State Farm and USAA may offer you a discount to recognise your low-risk status.
- New home discounts: If you own a newer home, companies like State Farm may offer a discount, as newer homes are often considered lower risk for insurance purposes.
- Credit score: Your credit score can significantly impact your insurance rates. In Missouri, those with poor credit pay an average of $6,195 per year for homeowners insurance, while those with good credit pay 88% less.
- Location: The location of your home within Missouri can affect your insurance costs. For example, the average cost of insurance in St. Louis and Kansas City is $3,290 per year, while in Columbia, it's $3,020.
- Risk factors: The risk factors associated with your home can influence your rates. For instance, if you live in an area with a high risk of fire, AAA may offer you more affordable rates. Similarly, if you're in a high-risk area for flooding, consider purchasing flood insurance as an add-on.
Add-ons
- Flood insurance: While not typically included in standard policies, flood insurance is a crucial add-on for Missouri residents, as every county in the state has experienced flooding. You can purchase private flood insurance or opt for NFIP coverage.
- Earthquake coverage: While Missouri is known for tornadoes and winter storms, earthquakes can occur, and the damage can be costly. Consider adding earthquake coverage to your policy if it's not already included.
- Identity theft protection: This add-on can provide valuable financial protection if you become a victim of identity theft, and it's offered by companies like State Farm and USAA.
- Valuable possessions coverage: If you have high-value items, consider adding this coverage to ensure you're adequately protected in the event of theft or damage.
- Water backup coverage: Water damage from backed-up plumbing or sewers can be costly to repair. Adding water backup coverage can provide financial peace of mind.
- Personal property replacement: This add-on ensures that, in the event of a covered loss, you'll receive enough money to replace your belongings with new items, rather than receiving only the depreciated value.
Remember, when considering discounts and add-ons, it's essential to shop around and compare rates and coverage options from multiple companies to find the best value for your specific needs.
Tickemaster Insurance: Is Peace of Mind Worth the Cost?
You may want to see also
Explore related products
Location and value
The cost of home insurance in Missouri depends on factors such as the location and value of the home. The average annual cost of home insurance in Missouri is $3,031, although some sources state the average to be $3,290 or $2,441. This is higher than the national average of $2,110. However, Missouri homeowners pay lower insurance rates than residents of neighbouring states like Arkansas and Oklahoma.
The average cost of home insurance in St. Louis and Kansas City is $3,290 per year, while homeowners in Columbia pay $3,020 per year, on average. The cheapest rates in Missouri are offered by AAA and Nationwide. AAA offers the cheapest rates in most cities, including Columbia, Independence, Kansas City, Springfield, and St. Louis. The average annual cost of AAA home insurance is $1,579 for a policy with $350,000 of dwelling coverage. Nationwide offers the lowest rates for newer homes, at $650 per year.
The cost of home insurance also depends on the value of the home. The average annual premium for homeowners insurance in Missouri is $2,264.73. State Farm, one of the best homeowners insurance companies in Missouri, offers sample rates averaging $2,210.34 annually. Allstate offers the cheapest average rate at $2,356 per year. USAA, which provides insurance to military members and their families, offers the second-cheapest option at $2,424 per year.
Reporting Supplemental Insurance: Where on Your Tax Return?
You may want to see also
Explore related products
Credit score impact
Credit scores can impact the cost of homeowners insurance in Missouri. While it's hard to determine exactly how much a credit score affects insurance rates, a poor credit score can make it more difficult to find affordable home insurance.
In most states, insurance companies consider credit-based insurance scores when evaluating your credit history and calculating premiums. A CBI score is similar to a FICO credit score but is calculated differently for each insurer. It's based on various components, with previous credit performance and the amount and types of credit being the two biggest factors. A low credit score may not always impact your insurance rates, as every company uses its own scoring metric to determine CBI scores. However, a poor credit score can significantly increase your insurance costs. Homeowners with poor credit pay an average of 82% more for home insurance than those with excellent credit.
In Missouri, those with poor credit pay around $6,195 per year for homeowners insurance, 88% more than what those with good credit pay. While a credit check won't impact your credit score, having good credit can help you get approved for insurance and secure lower rates.
It's important to note that credit history is not the only factor insurance companies consider. Other factors include your home's location, value, size, age, renovations, and materials. Additionally, your coverage amount, deductible, and marital status can also influence your insurance rates. Shopping around and comparing rates from multiple insurers can help you find the best deal, as costs can vary significantly between providers.
Tenant Troubles: Insuring Peace of Mind for Landlords
You may want to see also
Explore related products
Flood insurance
Home insurance in Missouri does not cover flood damage. Flood insurance is an additional policy that covers the types of water damage that most homeowners' insurance does not. Flooding is the most common natural disaster and can happen anywhere in the United States, including Missouri, where every county has experienced flooding.
The average cost of flood insurance in Missouri is $595 per year, or $98 per month, which is higher than the national average. The cost of flood insurance depends on the size of your home, its structure, and the value of your possessions. Standard policies are often limited to $250,000 for the building and $100,000 for its contents, but additional coverage can be added, and policies can be customized to cover only the building, only the contents, or both.
In Missouri, many areas are covered by the National Flood Insurance Program (NFIP). Coverage under the NFIP can average around $1,100 a year, but rates may be lower in lower-risk areas. If you live in a high-risk area, you can purchase flood insurance through a private insurer. Many policies for flood insurance in Missouri have a 30-day waiting period before any claims can be made.
It is important to note that most homeowner's insurance policies will cover flooding damage caused by plumbing problems, but they will not pay for flooding due to overflowing rivers. Additionally, NFIP flood insurance does not cover damage caused by coastal surges or sneak waves.
Understanding Home Insurance: Deductibles and Section 2
You may want to see also
Frequently asked questions
The cheapest homeowners insurance in Missouri differs depending on your circumstances. Overall, AAA and Nationwide offer the lowest-cost home insurance in Missouri. However, if you own a new home, Nationwide offers the cheapest insurance, while AAA is the cheapest option for those in high-risk fire areas.
The average cost of home insurance in Missouri is $3,031 per year. However, this number varies depending on the company, your age, your home's details, and whether or not you have filed any home insurance claims. For example, the average cost of home insurance in St. Louis and Kansas City is $3,290 per year, while homeowners in Columbia pay $3,020 per year, on average.
Local weather patterns, crime rates, home values, and rebuilding costs can all influence insurance premiums in Missouri. Additionally, your insurance score, which is similar to but not identical to your credit score, plays a significant role in determining your insurance rate. Those with poor credit in Missouri pay on average $6,195 per year for homeowners insurance, while those with good credit pay 88% less.
