Landlord Insurance in Missouri: Costs, Requirements & Best Providers

Where Missouri premiums come from

Missouri’s benchmark of $3,805 runs about 53% above the national figure. A landlord (DP-3) policy on the same $400,000 house would start around $4,380 to $4,760. Rentals in Springfield, Columbia or north Kansas City usually rebuild for less and price lower, but Missouri still pays more than most states for the same house.

Wind and hail account for most of it. Kansas City and Springfield get regular hail, and tornadoes cross the state every spring. The Joplin tornado on May 22, 2011 destroyed thousands of homes and remains one of the deadliest in US history. Many Missouri policies use a separate wind and hail deductible, sometimes a percentage of the dwelling limit. On a $200,000 limit, 1% is $2,000 per storm.

The New Madrid zone and brick buildings

The 1811-1812 New Madrid earthquakes were among the strongest ever recorded east of the Rockies, and the zone still produces small quakes in the Bootheel. St. Louis is within range of serious shaking.

That matters more in Missouri than in some other places because of what landlords own here. St. Louis is full of century-old brick two-family flats and four-family buildings, and unreinforced masonry tends to crack and collapse more than wood frame in a quake. Standard landlord policies exclude earthquake. An endorsement comes with a percentage deductible, often 10% or more of the dwelling limit, so read it before you buy.

Lenders on one-to-four unit buildings rarely require earthquake coverage. The decision is yours.

Floods along two big rivers

Flood is excluded from landlord policies. The Missouri and Mississippi rivers flooded catastrophically in 1993 and again in 2019, and record rain in St. Louis in July 2022 flooded neighborhoods far from either river. Lenders require flood insurance in FEMA special flood hazard areas. Elsewhere, an NFIP or private flood policy is optional and often inexpensive. Basement water from a sewer backup needs its own endorsement.

Vacant and older properties

St. Louis and Kansas City have many older rentals, some vacant between tenants or under rehab. A standard landlord policy may not fit an empty or gutted building. Steadily and Obie both write vacant and renovation coverage. If the private market declines a property, the Missouri FAIR Plan is the backstop, with narrower coverage.

What lenders want

Lenders require dwelling coverage at least equal to the loan or rebuild cost, wind and hail included, the lender named as mortgagee, and flood coverage in a mapped zone. Investment and DSCR lenders often require loss-of-rent coverage.

Ways to pay less in Missouri

1. Re-roof with Class 4 impact-resistant shingles and ask each insurer for its discount.
2. Pick a wind and hail deductible you could pay from cash.
3. Update wiring and heating in older brick buildings before you shop.
4. Add a sewer backup endorsement and a battery-backed sump pump in basement units.
5. Put several rentals on one portfolio policy, such as Obie’s blanket coverage.

Missouri deposit rules and your risk

Missouri caps deposits at two months’ rent. You must return the deposit with an itemized list within 30 days after the tenancy ends, and wrongful withholding can cost up to twice the amount (Mo. Rev. Stat. § 535.300). The deposit must be held in a federally insured institution, and any interest belongs to you. Missouri sets no statutory notice period for nonpayment; you make a demand for rent and can file a rent-and-possession case. State law also sets no entry-notice period, so write one into the lease for storm inspections.