Missouri Homeowners Insurance Guide

For Missouri homeowners, having homeowners insurance is a necessity that should not be taken lightly.

Having homeowners insurance can offer financial protection, sometimes in the hundreds of thousands of dollars, if disaster should strike. For this reason, it is important that all homeowners know the ins and outs of homeowners insurance, from what homeowners insurance covers to determining how much coverage to purchase.

The Basics of Homeowners Insurance

Homeowners insurance provides financial protection that covers structural damage to the policy holder's home as well as any damage to personal property resulting from catastrophic events, including fire; lightening; windstorm, including hurricanes and tornadoes; hail; explosion; riot or civil commotion; smoke; vandalism; falling objects; weight of ice, snow or sleet; and freezing of plumbing, heating, air conditioning or other household systems.

Another component of homeowners insurance covers any personal liability claims against the policy holder if the policy holder or his or her family causes bodily injury or property damage to a third party.

Those with homeowners insurance should be aware that having this coverage does not protect them in all cases. Standard homeowners insurance does not covers damages or losses resulting from neglect, intentional loss, earth movement, general power failure, flooding or acts of war.

The amount the policy holder will pay for homeowners insurance depends on many factors, one of which is the amount of coverage provided by the insurance policy. Homeowners insurance coverage can fall into one of three categories:

• Actual Cash Value: Provides enough coverage to replace your home and/or possessions after accounting for depreciation.
• Replacement Cost: Provides enough coverage to replace your home and or possessions without accounting for any depreciation.
• Guaranteed Replacement Cost: Provides 100 percent of the cost to rebuild your home to its exact condition before the disaster occurred.

How to Purchase Homeowners Insurance

The first step to take when purchasing homeowners insurance is to shop around. Comparing as many homeowners insurance rate quotes as possible will help ensure that you find the best policy for you and your family.

Additionally, you should make sure that any agents or brokers that you consider are licensed by the Missouri Department of Insurance, Financial Institutions and Professional Registration.

When obtaining homeowners insurance quotes, you will need to provide the following information to the insurance company in order to secure an accurate estimate of what your rates might be:

• a description of your home;
• the distance from your home to the nearest fire department and fire hydrant;
• your home's square footage;
• whether you have any security devices installed in your home;
• a photograph of your home; and
• and the coverage limits you wish to purchase.

Unfortunately, not everyone is able to obtain homeowners insurance from a standard insurance company. The inability to get coverage could stem from several possible reasons, including the location of your home if it sits in an area that is at extremely high-risk for disaster.

Missouri residents who are unable to obtain homeowners insurance from an insurance company are not out of luck, however. The Missouri Property Insurance Placement Facility, or the FAIR Plan, offers coverage of damages or losses resulting from fire, wind, hail, smoke, explosion, aircraft or vehicles, riot or civil commotion, vandalism and malicious mischief. The FAIR Plan does not provide coverage for losses resulting from theft or liability insurance.