Severe weather trends and an increase in claims are impacting the price of homeowners insurance in Missouri, regulators say.
A recent report issued by the Missouri Department of Commerce and Insurance shows that homeowners insurance claims have increased at a steady pace resulting in increased premium rates for consumers.
“Missouri has had a pretty bad streak of weather for the last 20 years,” Chlora Lindley-Myers, director of the Department of Commerce & Insurance (DCI), said in a media release.
Analysis of premium and losses data by DCI staff shows that an increase in insurance claims by homeowners has required insurance companies to raise their rates. The most significant loss category for Missouri residential property claims can be attributed to wind and hail damages.
“It is clear from the data that the primary driver of homeowners insurance cost increases are weather-related losses,” Lindley-Myers said. “The pre- and post-2001 periods appear pretty stark when you look at the reports.”
Lindley-Myers noted the EF-5 tornado in Joplin on May 22, 2011, that not only caused the deaths of 158 people but also resulted in over $2 billion in property losses and more than 19,800 insurance claims filed.
More recently, a series of tornadoes struck Missouri and parts of Oklahoma on the eighth anniversary of the Joplin tornado. On May 22, 2019, one violent tornado touched down in Jefferson City, Mo., just before midnight, injuring nine people. This severe weather loss caused over $189 million in Missouri property losses with over 6,400 insurance claims reported.
Source: Missouri Department of Commerce and Insurance
Originally posted at: https://www.insurancejournal.com/news/midwest/2021/06/15/618709.htm