Information for Missouri Homeowners

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

Having adequate coverage 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 purchasing a plan, from what they cover to determining how much coverage to purchase.

The Fundamentals You Should Know

These policies provides financial protection that goes towards repairing or replacing structural damage to the policy holder's dwelling 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 concerns 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 a plan should be aware that having this coverage does not protect them in all cases. Standard offerings do not covers damages or losses resulting from neglect, intentional loss, earth movement, general power failure, flooding or acts of war.

The amount the cusomter will pay for a plan depends on many factors, one of which is the amount of protection provided by the carrier. It can fall into one of three categories:

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

How to Purchase

The first step to take when purchasing is to shop around. Comparing as many 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 quotes, you will need to provide the following information to the carrier in order to secure an accurate estimate of what your rates might be:

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

Unfortunately, not everyone is able to obtain a plan from a standard provider. The inability to get a plan 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 service from an insurer 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.