Fewer Mo. Homeowners Insured for Big Quake
JEFFERSON CITY, Mo. (KMOX) - Missourians can’t help but think they’re sitting on a ticking time bomb, as New Zealand is shaken by a quake on the 200th anniversary of the big one on the New Madrid.
Yet fewer of the state’s homeowners are financially prepared.
A decade ago about half of St. Louis city residents had insurance coverage for their homes. Now about 30-percent do.
In the County about 60-percent of homeowners buy quake insurance compared to more than 70-percent 10 years ago.
The head of Missouri’s Department of Insurance, John Huff, says at the same time the cost for earthquake coverage has risen and deductibles have reached 10 to 15 percent of a home’s value. “So if you were in a $200,000 home for instance your deductible may be $20,000 or $30,000 depending on what coverage you pick. And some insurers are even requiring multiple deductibles so you would have a separate deductible for your contents, so you could be hit with $20,000 or $40,000 for a deductible.”
Huff says his department is trying to encourage more competition among insurance companies and more awareness among homeowners of the costs of NOT having coverage.
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