(800) 253-1482Common Coverage Gaps Home Insurance Doesn’t Cover in Missouri
Summary: Missouri homeowners can face big out-of-pocket costs when insurance gaps go unnoticed, like flood damage, home office gear, renovations, or sewer backups. Standard policies often miss key protections, and things like percentage-based deductibles or ACV payouts can leave you short. A little prep now can save you major stress later by avoiding gaps in your home insurance coverage.Estimated Read Time: 12 mins
Table of Contents:
- What Are Home Insurance Coverage Gaps in Missouri?
- How to Avoid a Missouri Home Insurance Gap in Coverage
- Home Insurance Lapses Can Cause Coverage Gaps in Missouri
- The 2% Deductible for Homeowners in Missouri
- Missouri Non-Renewals and Insurer Withdrawals
- RCV and ACV Leading to Coverage Gaps in Missouri
- Neglected Maintenance Can Cause Home Insurance Coverage Gaps in Missouri
- Protect Against Gaps in Home Insurance Coverage in Missouri
A gap in your home insurance coverage can lead to costly out-of-pocket repairs when you least expect it. Missouri homeowners have plenty of ways to stay protected, and with a little planning, home insurance coverage gaps are easy to avoid. Here's how to spot the most common gaps, and just as important, how to steer clear of them.
What Are Home Insurance Coverage Gaps in Missouri?
Home insurance is a key part of protecting your home in Missouri, no matter where you live.
However, it doesn’t matter if your residence is in a newer neighborhood in Blue Springs or an older home in St. Louis. Standard policies don’t protect against everything, leaving coverage gaps behind.
Gaps in your home insurance can lead to big, unexpected expenses if something goes wrong.
Here are some of the most common coverage gaps Missouri homeowners should watch out for when choosing a home insurance policy:
Missouri Excludes Flood Damage
Flooding is a real concern in many parts of Missouri, especially during the spring and summer months. Heavy thunderstorms, rapid snowmelt, and stalled weather systems can lead to flash flooding and swollen rivers, impacting many cities like Springfield, Branson, and Kansas City.
A common misunderstanding is that flood damage is covered under a standard home insurance policy, but it’s not.
Without a separate flood insurance policy, homeowners are left to handle costly repairs on their own, facing a gap in their coverage.
Despite the risks, many Missourians still don’t carry flood insurance, even in areas that see repeated flooding. That can be a costly gamble, considering the average flood damage claim is over $40,000.
Furthermore, according to FEMA, around 25% of all flood claims come from homes located outside of high-risk flood zones.
So, whether you live near the James River or in a quiet neighborhood in Columbia, flood insurance is something every homeowner should consider.
Coverage C: Personal Property Insurance Limits
A standard homeowners policy (HO-3) is the most common type in Missouri. It covers a wide range of things, but there are still limits that can leave you with surprise costs if you’re not careful.
One area where people often fall short is personal property coverage, also known as Coverage C.
This part of your policy helps pay to replace your belongings if they’re stolen or damaged, but it usually only covers 25% to 50% of your home’s total insured value found in its dwelling coverage.
That might sound like enough, but if you own high-value items, it may not be. If your loss goes over your coverage limit, you’ll have to pay the difference yourself.
Some of the most common things that may need extra coverage include:
- Jewelry or watches
- Musical instruments
- Artwork
- Antiques or collectibles
- High-end clothing or handbags
- Expensive electronics
Businesses and Side Hustles
The Internet continues to fuel remote work and side hustles throughout Missouri, but if you’re looking to your homeowners insurance policy to cover business-related items, you’re in for an unpleasant surprise.
Whether you're running a tech startup from your home in Kansas City, offering freelance services from a Joplin residence, or working remotely tucked away in the Ozarks, it’s important to understand what your homeowners insurance policy covers when it comes to business property.
Many policies don’t cover things like office equipment, inventory, or supplies used for business purposes.
To avoid unexpected expenses, make sure to consult with your insurance agent to identify any gaps in your coverage related to business use. This way, you’ll have the protection you need if something goes wrong.
Sump Pumps and Utility Lines
The cable, electricity, WiFi, sewer systems, water lines, and gas lines are essential to our daily lives and modern homes. However, if something goes wrong with any of these systems, don’t expect your home insurance to cover it.
Similarly, sewage backup is a nightmare no homeowner wants to deal with. While you might not anticipate it, dealing with a backed-up sewer can lead to repair costs that exceed tens of thousands of dollars.
You might be surprised that utility lines connected to your home are your responsibility if they suffer a loss, and what’s even more shocking is that these issues typically aren’t included in standard policies.
Without the right endorsements in place, these situations can leave major coverage gaps for homeowners in Missouri. Make sure you’re protected by adding the right coverage to your policy to avoid gaps.
Home Renovations
Renovations can boost your home's value, but failing to update your insurance can create coverage gaps.
For example, adding a new home office or expanding your living space may boost your home’s value, but without notifying your insurer, your coverage might fall short if you need to file a claim.
Always update your policy after renovations to ensure it covers your home’s new value.
Some changes, like adding a high-end appliance, could also increase your risks and affect your premiums. Keeping your insurer informed protects you from surprises later, including having your claim outright denied by your carrier.
How to Avoid a Missouri Home Insurance Gap in Coverage
Homeowners can avoid home insurance coverage gaps by knowing what to look for. It’s important to have a policy that is specific to the risks your home faces, and in Missouri, there are plenty of variables, especially from the severe weather homes must endure, to consider.
Examine Your Policy
Avoiding home insurance gaps in Missouri starts with knowing what kind of policy you actually have. A lot of homeowners in the Show-Me State carry an HO-3 policy.
This is the most common form of home insurance available, but it only covers certain risks that are specifically listed.
So if something unusual happens, like a power surge that damages your electronics, your claim might be denied if it’s not listed.
An HO-5 policy, on the other hand, gives broader protection. It covers everything unless it's clearly excluded. If you want more peace of mind and fewer coverage surprises, upgrading to an HO-5 could be a smart move.
Just keep in mind that with more protection comes higher premiums. Generally speaking, HO-5 home insurance policies are more expensive.
Purchase Flood Insurance
Even if you don’t live right next to a river or lake, flooding can still be a real risk in Missouri.
From Jefferson City to O’Fallon to the low-lying neighborhoods of St. Louis, heavy rains and flash floods can cause serious damage in a short amount of time.
The tough part? Standard home insurance doesn’t cover flood damage. You’ll need a separate flood insurance policy to stay protected.
Just one big storm could leave you with tens of thousands of dollars in repairs, so it’s better to be safe than sorry.
Customize Your Personal Property Coverage
Enrolling in Scheduled Personal Property coverage allows you to protect against losses that are more than a standard home insurance policy allows for.
Basic limits can help you restore personal property in most cases, but if you suffer a major loss or have expensive items, like a firearm, jewelry, instrument, etc., then you’ll likely need to insure these things with a specific endorsement in order to avoid coverage gaps.
Personalize Your Coverage With Endorsements (Riders)
If your sewer backs up into your basement or a water line breaks in your yard, the damage can be messy and expensive. That’s where a sewer backup or sump pump overflow endorsement can really help.
There are also endorsements for things like service lines, which cover buried pipes and wiring that connect your home to city services. If those lines break, you could be stuck with a big repair bill without service line insurance.
These types of add-ons, called endorsements or riders, fill in the gaps that standard home insurance might miss.
By using endorsements, homeowners can pinpoint the specific risks of their homes and personalize their coverage accordingly. Riders are an affordable way to protect against large financial losses, specific to your risks.
Prepare for the Future
The best home insurance policies don’t just cover you today, they help you stay ready for tomorrow, too.
As a homeowner, it’s important to keep your coverage up to date. If you’re planning a renovation, adding a room, or making any major changes to your home or lifestyle, give your insurance agent a heads-up.
Staying in touch helps make sure your policy keeps up with your needs and that you’re not left with surprise coverage gaps down the road.
Home Insurance Lapses Can Cause Coverage Gaps in Missouri
A lot of Missouri homeowners don’t realize how risky it is to let their home insurance lapse, even for a short amount of time.
There are many ways you can lapse in your homeowners insurance, including changing banks but forgetting to update your payment info, missing your renewal deadline, etc.
No matter the reason, going without coverage can cost you big. If something happens to your home during that time, like storm damage or a fire, you’re the one stuck paying the bill. That could mean thousands of dollars out of pocket.
Plus, when insurance companies see a gap in your home insurance coverage, they may think you’re a higher risk, leading to higher rates or trouble finding a company willing to insure you at all.
Furthermore, for those with mortgages, home insurance is often required. If you face a gap in coverage because of a policy lapse, your lender may buy a policy for you called “force-placed insurance,” which usually costs more and doesn’t cover as much.
To stay protected, keep up with your payments, read renewal notices, and set reminders so you don’t forget. You can also ask your insurance company about auto-renewal options to make sure your coverage keeps going without a hitch.
The 2% Deductible for Homeowners in Missouri
Many Missouri homeowners are surprised to learn their deductible isn’t always a flat amount. Instead, it’s often a percentage, usually 1% or 2% of the home’s insured value.
So, if your home is insured for $300,000 and you have a 2% deductible, you'd have to pay $6,000 out of pocket before insurance covers the rest. That’s a big bill, especially after a storm or tornado rolls through areas like Springfield or Columbia.
Percentage-based deductibles are common in Missouri due to the risk of severe weather. But if you're not prepared, that out-of-pocket cost can be a real strain.
To stay ahead, double-check your policy to see what your deductible actually is—some even have separate deductibles for wind or hail. If it feels too high, ask your agent about other options or compare quotes from different companies.
Missouri Non-Renewals and Insurer Withdrawals
While not at the levels some states are experiencing, a new trend is affecting homeowners throughout Missouri. More and more, residents are receiving unexpected non-renewal notices from their insurance companies.
That means your insurer has decided not to keep your policy once it expires, even if you’ve never made a claim.
Insurance companies are becoming pickier, especially with the increase in hailstorms, rising threats of tornadoes, devastating flash floods, and other severe weather across the state.
If you live in a higher-risk area or have an older roof, your home could be seen as too risky to insure.
Some companies are even leaving Missouri altogether, which means homeowners are being forced to find new coverage, usually at a higher price or with fewer protections.
That’s why it’s smart to choose a strong, reliable insurance company from the start. It also helps to shop around and compare quotes so you’re not stuck with limited options if things change down the road.
RCV and ACV Leading to Coverage Gaps in Missouri
If something in your home gets damaged and you file an insurance claim, you might assume your policy will cover the full cost to replace it with something new. However, that’s not always the case.
Many home insurance policies in Missouri use Actual Cash Value (ACV). That means your payout is based on the item’s current value, after wear and tear is taken into account, not what it costs to buy a new one.
Let’s say your roof is 15 years old and a hailstorm hits in Kansas City. With ACV, the insurance company subtracts depreciation, so you might only get part of what a new roof costs. You’d have to pay the rest out of pocket.
Replacement Cost Value (RCV), on the other hand, covers the cost to replace things with brand-new versions, without deducting for age or condition. RCV usually costs more in premiums, but it can save you big money when something major is damaged.
A lot of homeowners don’t realize they have ACV until they get a surprise at claim time. When reviewing your policy, check whether your coverage includes ACV or RCV—especially for your home’s structure and personal belongings.
Adding an RCV endorsement can help fill this home insurance coverage gap and give you better protection if disaster strikes.
Neglected Maintenance Can Cause Home Insurance Coverage Gaps in Missouri
Home insurance in Missouri can be a lifesaver when something unexpected happens, but it’s not meant to cover damage caused by wear and tear or poor upkeep. That’s where a lot of people run into trouble without realizing it.
For example, imagine you’ve got a small leak under the kitchen sink in your home. If you ignore it for months and it eventually causes major water damage, your insurance company might deny the claim.
This common home insurance gap in coverage occurs because the damage happened over time, and it could’ve been prevented with regular maintenance.
The same goes for other parts of your home. If you don’t check your roof after one of Missouri’s strong storms and miss some broken shingles, water could leak in later, and that damage might not be covered.
Older homes facing termite damage that aren’t treated also aren’t covered by home insurance policies, leaving you to cover any structural damage.
Homeowners insurance is there for sudden accidents, not slow problems that grow worse when left alone. That’s why it’s so important to keep up with regular maintenance.
Check your plumbing, roof, and foundation regularly, and fix the small stuff before it turns into a big, expensive surprise.
Protect Against Gaps in Home Insurance Coverage in Missouri
The best way to avoid coverage gaps is to know your risks and make sure your home insurance covers what matters most to you. That’s why it’s smart to shop around and compare quotes.
Comparing multiple carriers helps you find the right coverage at a price that fits your budget, all from a home insurance company you can trust when the unexpected happens.
At Freedom Insurance Group, we’re proud to help Missouri homeowners make confident insurance choices. Since 2005, we’ve connected families with trusted, top-rated carriers that offer strong protection and reliable support.
Want to avoid a gap in home insurance coverage, save money, and stay protected? Use the free quote tool below or give us a call at the number above to find the right policy for your needs.
