Standard Missouri homeowners insurance policies do not cover earthquake damage. Homeowners who want protection from seismic activity need separate earthquake insurance to be covered. Coverage may be available either as an endorsement (an optional add-on) to an existing home policy or as a standalone policy.
Missouri is one of the nation’s most earthquake-prone states because of the New Madrid Seismic Zone (NMSZ). Despite that risk, earthquake insurance participation in Missouri’s highest-risk counties has fallen dramatically, possibly due to increased costs. Missouri Department of Commerce and Insurance (DCI) data show that coverage in the region has dropped sharply in recent years. More than 60% of homes were covered in 2000, and just over 10% were as of 2021, leaving many homeowners exposed to a risk that standard home insurance policies don’t cover.
Is Missouri on a fault line?
Yes. Missouri sits on the New Madrid Seismic Zone, one of the most active earthquake zones in the Central U.S. The fault system runs through southeastern Missouri and extends into Arkansas, Tennessee, Kentucky, and Illinois.
The New Madrid region is best known for a series of 7.3- to 7.5-magnitude earthquakes in 1811 and 1812, which were among the strongest earthquakes ever recorded in the U.S. Today, the region experiences roughly 200 smaller earthquakes a year. According to the U.S. Geological Survey (USGS), the zone has a 25 to 40% chance of a 6.0 or greater magnitude earthquake in the next 50 years.
What does earthquake insurance cover in Missouri?
Earthquake insurance helps cover damage caused by the ground shaking and other earthquake-related damage-causing events that are not covered by standard homeowners insurance. It typically includes dwelling coverage for damage to your home’s structure and personal property coverage for your belongings. Some policies also may provide loss of use coverage (sometimes called additional living expenses or ALE), which can help pay for temporary housing and other costs if your home is uninhabitable due to covered earthquake damage.
Earthquake insurance may not cover all types of damage associated with a seismic event, however. Flooding, vehicle damage, and changes to the land beneath your home are generally excluded. Damage from fire following an earthquake is likely to be covered by your homeowners policy.
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Typically covered by earthquake insurance |
Typically not covered by earthquake insurance |
|
Damage to your home’s structure |
Flood damage |
|
Personal belongings damaged by a covered earthquake |
Damage to vehicles |
|
Loss of use / additional living expenses |
Land movement or damage to the land itself |
|
Detached structures, if included in your policy |
Normal wear and tear or maintenance issues on your home or belongings |
How much does earthquake insurance cost in Missouri?
The cost of Missouri earthquake insurance varies based on your home’s location, construction type, coverage limits, deductible, and more. Generally, homeowners in or near the NMSZ can expect to pay more for coverage than homeowners in lower-risk areas.
Consider, for example, the following average premiums from the Missouri DCI for a ranch-style, 2,500-square-foot home with a composite shingle roof and $200,000 in dwelling coverage:
|
Location |
Relative earthquake risk |
Average premium |
|
Caruthersville (New Madrid region) |
High |
$2,134 |
|
St. Louis |
Moderate |
$398 |
|
Kansas City |
Low |
$206 |
How earthquake insurance deductibles work
One important factor to understand is earthquake insurance deductibles. A deductible is the amount of damage you’re responsible for covering out of pocket before your policy kicks in on a covered claim. Earthquake deductibles are typically percentage-based, ranging from 5% to 20% of your home's insured value — much higher than the flat dollar amounts that apply to standard home insurance claims.
Example: A 10% deductible for a home insured for $300,000 would mean you are responsible for the first $30,000 of a covered earthquake claim.
RCV vs. ACV earthquake insurance coverage
The type of coverage you choose may also affect both your premium and your claim payout. Replacement cost value (RCV) coverage pays to repair or replace your damaged belongings with new items of similar quality. Actual cash value (ACV) coverage pays less for those same items, since it factors in how much value they've lost over time. RCV policies generally cost more but provide larger claims payments.
How to reduce earthquake damage to your Missouri home
No home can be made completely earthquake-proof, but there are steps you can take to reduce the risk of injury and property damage following a seismic event.
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Secure heavy furniture and appliances: Anchor bookcases, cabinets, water heaters, and large appliances to the walls with straps or brackets. These items are among the most common causes of earthquake-related injuries and damage.
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Consider a seismic retrofit: Older Missouri homes may not have been built to modern seismic standards. A structural engineer can evaluate whether bracing, bolting, or other improvements would help your home better withstand earth movement.
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Anchor your home to its foundation: Many homes, especially those built on crawlspaces, can benefit from additional anchoring or foundation bracing to help prevent shifting during an earthquake.
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Reinforce masonry chimneys: Unreinforced brick or stone chimneys are vulnerable to earthquake damage and may benefit from retrofitting to improve stability.
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Store hazardous materials safely: Keep flammable liquids and other hazardous materials in sealed containers on low, stable shelving to reduce the risk of spills and fire.
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Know how to shut off utilities: Everyone in your household should know how to shut off gas, water, and electricity after a quake to avoid gas leaks or other causes of post-earthquake fires.
Is earthquake insurance worth it in Missouri?
Earthquake insurance could be worth it if you live near the NMSZ. According to the U.S. Geological Survey, the region faces a significant risk of future significant earthquakes. Studies cited by the Missouri DCI estimate that a major New Madrid event could cause up to $300 billion in economic losses — a useful reminder of how much financial exposure homeowners in the region could face.
You might need earthquake insurance if:
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You live in or near the New Madrid Seismic Zone
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You would struggle financially to pay for major repairs or rebuilding costs out of pocket
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Your home has significant value that you want to protect
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Your mortgage lender requires earthquake coverage
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You want financial protection against a risk that standard homeowners insurance excludes
On the other hand, some homeowners may decide they're comfortable taking on this financial risk themselves, especially if they live in a lower-risk area and have enough savings to absorb a major repair expense.
One common misconception is that standard homeowners insurance covers earthquake damage. In most cases, it doesn't. Before deciding whether earthquake coverage makes sense for you, review your existing policy, evaluate your financial situation, and consider the potential cost of rebuilding if your home experiences a major earthquake.
Frequently asked questions
Is it worth paying for earthquake insurance?
The value of earthquake insurance depends on the cost of the policy, your earthquake risk, and your ability to cover repairs on your own. For some homeowners, paying a premium each year provides peace of mind. Others may be comfortable with the risk. Evaluating your location, home value, savings, and insurance costs can help you decide whether earthquake insurance is right for you.
What kind of insurance covers earthquakes?
Standard homeowners and renters insurance policies typically don't cover earthquake damage. To protect against losses from seismic activity, you'll generally need to buy earthquake coverage as a standalone policy or an endorsement to an existing policy. If your vehicle is damaged in an earthquake, your car insurance should cover repairs as long as you have comprehensive coverage.
