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Are you familiar with the homeowner’s insurance buying process? We’re guessing that if you’re here reading this, then you’d like to learn more about it. And we’re happy to help! We understand that it can seem like an overwhelming task. But with a few helpful pointers, you’ll be able to navigate the market and find the most affordable premium for your home insurance policy.
Across the homeowner’s insurance industry, and in several states (Missouri included), the most popular type of policy is classified as HO-3. It provides very comprehensive open peril coverage for your external structure. There is also a fairly long list of named perils which cover any damage to the personal property within your home. Lastly, you won’t have to worry about accidents on your property – even if they result in injury – because these policies provide coverage for those events as well.
|Types of Coverage||Coverage Amount|
|Replacement Cost (Dwelling)||$250,000|
|Replacement Cost (Contents)||$150,000|
One difference you’ll find in Missouri that you won’t find in most other states are the coverage limits on liability and medical expense payments. For medical payments, Missouri insurance companies allow nearly double the coverage of most other states. And they also seem to include an extra $50,000 in coverage for liability payouts, too.
Aside from Springfield, and cities like it, average homeowners insurance premiums in Missouri are pretty uniform. But that doesn’t mean they aren’t expensive. While Missouri is only about $50 higher than the national average, it pays to shop around for the best deal. It could make a difference of almost $2,000 per year on your premiums!
Guess what? There’s no state law that says Missouri homeowners have to purchase home insurance. And there’s no federal law, either! But before you get too excited, let us explain a few things. Anyone who is paying a mortgage will likely sign some paperwork from their bank promising to purchase homeowners coverage. And if you don’t follow through with that promise, there’s a good chance you will lose your house. If you own your house outright, though, the decision to purchase coverage is up to you. But if you don’t, and you get hit by one of many of Missouri’s natural disasters, you’re on your own as far as repair costs are concerned.
Lots of homeowners get into trouble where home inventories are concerned. You should start by taking one before you start shopping for coverage, and update it yearly to make sure your coverage is adequate. But let’s be honest: a home inventory, especially the very first one, is a tedious burden. But underestimating or overestimating the value of your property could result in either insufficient coverage or excessively high premiums, respectively.
In Missouri, there are dozens of perils that could strike your home at any time. We’ve decided to cover the most important ones in this list. If you are worried about available coverage for one of these situations, or if you are concerned with a coverage not listed here, be sure to let your insurance agent know:
Has your agent introduced you to the concepts of “replacement cost” or “actual cash value”?. Luckily, they aren’t very hard to understand. replacement cost is pretty simple to understand; if you file a claim on your structure, then your homeowners insurance company will pay 100% of your claim to get your structure repaired. Actual cash value, on the other hand, does incorporate depreciation. An older fridge damaged by an electrical surge, for example, may cost over a thousand dollars to replace brand-new, but your insurer will only pay out a fraction of that price.
Different types of financial activities will require different types of checks on your credit history. Some, such as applying for a car loan, will perform a “hard” check. While this might help the bank get a better idea of a fair rate, it will also leave a blemish on your report. And credit report blemishes are just like real-life ones; the more of them you have, the worse you look.
Credit checks are thankfully more lenient when it comes to homeowners insurance. Most of the time, your insurer will only go back in time a maximum of 7 years in order to evaluate your premium. And it won’t leave a mark on your credit report, either; so feel free to request as many quotes as you want! It’ll definitely help you save money, especially if you have good credit.
For more information, feel free to click any of the links you see in this article. They all lead to more detailed information about homeowner’s insurance, specifics on purchasing a policy, and how to find the best deal. You should also contact local resources in your state, such as:
Or contact them directly through the following resources:
Missouri Department of Insurance
Truman State Office Building
P.O. Box 690
Jefferson City, MO 65102
Phone: 573-751-4126 | Fax: 573-526-4898