By Jordan Lair, Licensed Agent, MBG Insurance – Springfield, MO written 10/5/2026
Most Missouri homeowners don’t read their policy until something goes wrong. A hailstorm rolls through Springfield, a basement floods in Oak Grove, or a tree comes down on the garage, and that’s when they find out what their coverage actually does.
As an independent agent in our Springfield office, I review homeowners policies every week. These are the five misunderstandings I run into most, and what you should know before you need to file a claim.
Myth 1: “After a covered claim, all I pay is my deductible.”
Not always. How your claim pays out depends on whether your policy settles at Replacement Cost or Actual Cash Value (ACV), and many Missouri policies now use both.
With Replacement Cost, the company pays what it costs to repair or replace the damage, minus your deductible. You’ll usually get a first check based on depreciated value, then a second check for the depreciation once the repairs are finished.
With Actual Cash Value, the company subtracts depreciation and keeps it. That matters most on roofs. Because Missouri sees so much hail, many carriers now settle older roofs at ACV or on a roof payment schedule, even when the rest of the house is covered at Replacement Cost. On a 15-year-old roof, that difference can leave you paying thousands out of pocket on top of your deductible.
What to check: Look at how your roof is settled, not just the dwelling, and ask whether your policy has a cosmetic damage exclusion for metal roofing or siding.
Myth 2: “I have one deductible.”
Many Missouri homeowners actually have two: an all-perils deductible for things like fire, theft, or water damage, and a separate wind/hail deductible for storm claims.
That wind/hail deductible is often a percentage of your dwelling coverage instead of a flat dollar amount. A 1% deductible on a home insured for $350,000 means you pay the first $3,500 of a hail claim, not the $1,000 you may have in mind. At 2%, it’s $7,000.
Percentage deductibles aren’t automatically bad. They can lower your premium noticeably. The problem is not knowing you have one until the adjuster shows up.
What to check: Find the wind/hail deductible on your declarations page and do the math in dollars.
Myth 3: “My policy covers water damage, so flooding and sewer backup are covered.”
This is the one that surprises people most. A standard homeowners policy covers sudden water damage from inside the home, like a burst pipe. It does not cover:
- Flood: rising water from rivers, creeks, flash flooding, or heavy rain pooling around the house. Flood coverage requires a separate policy, either through the National Flood Insurance Program or a private flood carrier.
- Sewer and drain backup: water that comes up through floor drains, toilets, or a failed sump pump. This is usually excluded unless you add a water backup endorsement.
For Missouri homes with finished basements, water backup coverage is one of the most valuable endorsements you can buy, and it’s usually inexpensive. Flood coverage is worth discussing even if you’re outside a mapped flood zone, since a large share of flood claims come from outside high-risk areas.
What to check: Ask whether you have water backup coverage and what the limit is. Many policies cap it at $5,000 or $10,000, which won’t go far in a finished basement.
Myth 4: “Bundling my home and auto always gets me the best price.”
Bundling often saves money, but not every time. Some carriers are very competitive on home and average on auto, or the reverse. Occasionally a split setup with two different companies costs less than any bundle.
A captive agent can only show you one company’s bundle. As an independent agency, MBG works with carriers including Auto-Owners, Travelers, Cincinnati, Liberty Mutual, Nationwide, Progressive, Barton Mutual, and Openly, so we can compare bundled and unbundled options side by side and show you the real difference.
What to check: Ask your agent to quote it both ways.
Myth 5: “Earthquakes are covered under my homeowners policy.”
Standard homeowners policies exclude earthquake damage. Missouri sits next to the New Madrid Seismic Zone, centered in the southeast corner of the state, and a major quake there could cause damage well beyond the Bootheel.
Earthquake coverage is typically added as an endorsement or purchased as a separate policy. It usually carries its own percentage deductible, often 5% to 15% of your dwelling coverage, so it’s designed for major damage rather than small cracks.
What to check: Ask what earthquake coverage would cost for your home and what the deductible would be. For many Missouri homeowners, it costs less than they expect.
Missouri Homeowners Insurance FAQ
How much does homeowners insurance cost in Missouri?
It depends on your home’s size, age, location, roof, claims history, and the coverage you choose. When we bundle home and auto for Missouri homeowners, most policies we quote land roughly between $1,800 and $3,000 per year. Published state averages often run higher.
The best way to know your price is to compare several carriers at once, which is what an independent agent does.
Does homeowners insurance cover more than the house?
Yes. Most policies also cover other structures like detached garages, sheds, and fences; your personal belongings; personal liability if someone is injured on your property; and loss of use, which pays for temporary housing if your home is unlivable after a covered claim.
Should my coverage match my home’s market value?
No. Your dwelling coverage should be based on what it would cost to rebuild your home, not what it would sell for or what you owe on the mortgage. Rebuilding costs include labor, materials, debris removal, and building code upgrades, and they can be higher or lower than market value.
Many policies offer extended replacement cost, which adds a cushion (often 25% to 50%) in case construction costs spike after a widespread storm.
When should I review my homeowners policy?
At least once a year at renewal, and any time you replace your roof, finish a basement, remodel, add a pool, or buy expensive items like jewelry or firearms that may need to be scheduled separately.
Talk to a Missouri Independent Agent
Every policy is different, and the details above won’t apply the same way to every home. The best way to know what you’re covered for is to have someone walk through your policy with you.
MBG Insurance has two Missouri offices ready to help:
- Springfield: 2100 S Brentwood Blvd., Ste. B, Springfield, MO 65804 · (417) 773-7822
- Oak Grove: 1200 S Broadway, Oak Grove, MO 64075 · (816) 690-2640
Learn more about home insurance HERE!
This article is for general information only. Coverage depends on your specific policy, carrier, and endorsements. Talk with your agent about your situation.