Posted by Dawn Griffin
5 Ways to Lower Your Home Insurance Premiums in St. Louis
Home insurance premiums have been under upward pressure nationwide, and St. Louis homeowners aren’t immune. Homeowners’ insurance costs have increased about 33% nationwide since 2020. Meanwhile, Missouri saw roughly a 12% rise in premiums between 2021 and 2024.
In some cases, premiums in Missouri have jumped even more aggressively — Policygenius notes a 21% increase from May 2022 to May 2023. Also, the average premium in Missouri for a homeowner with no claims in the last five years is around $2,835, but with even one claim, it jumps to $3,532 — an increase of nearly $700.
Why do these increases matter? Because when premiums are already elevated, small adjustments and proactive strategies can yield real savings. Here are five smart, actionable ways to push back on rising costs — with attention to local dynamics.
1. Increase Your Deductible (Where You Can Safely Stretch)
One of the most straightforward levers: raising your deductible. Insurers often lower premiums when policyholders share more risk.
- Before doing this, verify what your current financial cushion is. The higher deductible should be one you can cover without hardship.
- For example, if you move from a $500 deductible to $1,500 or $2,500, the insurer may reduce your premium meaningfully — especially in a higher-cost environment.
Because St. Louis is relatively less exposed to extreme climate risks than coastal or hurricane zones, insurers may already price deductibles more favorably here. (That said, the rising costs of replacement and repair still factor in, so the premium relief may not be huge — but it’s worth pursuing.)
2. Bundle Your Policies (Home, Auto, Umbrella)
Insurers often give “multi-policy” discounts when you bundle home and auto (or other types of coverage) under the same carrier. In a tightening market, that discount becomes more valuable.
Why this is especially useful in Missouri / St. Louis:
- The insurance market in this region tends to be less volatile than in high-risk states (e.g. for hurricanes or wildfires), so insurers already expect less extreme variability.
- Insurers’ margins are tighter right now; bundling is one of the easier discount levers they’re willing to use to retain customers.
Even a 5% or 10% discount via bundling can add up over time, especially as baseline premiums grow.
3. Invest in Risk-Reducing Home Upgrades
Insurers give credit for mitigating risk. Some upgrades or maintenance measures help reduce your exposure and can translate into lower premiums or better renewal terms:
- Install or upgrade monitored smoke and carbon-monoxide detectors.
- Add a home security or alarm system, ideally tied to a central monitoring service.
- Use fire-resistant or impact-resistant roofing materials (especially relevant if hail/wind is a threat).
- Reinforce entry points: stronger doors, better locks, upgraded windows.
- Maintain your roof and repair leaks before they compound into bigger claims.
Because repair and replacement costs have ballooned (materials, labor, supply-chain constraints), insurers increasingly penalize aging or neglected homes. In St. Louis, many neighborhoods include older houses or legacy construction — an incentive to stay ahead of deterioration or structural issues.
4. Maintain a Good Claims Record (Avoid Small Claims If Possible)
One of the strongest levers for insurers: claims history. Even a relatively small claim can flag your policy for higher pricing or surcharges.
In Missouri, the difference is stark:
- No claims in five years: ~$2,835 average premium
- One claim in five years: ~$3,532 average premium
That’s nearly a 25% increase just from one claim.
If a damage is minor and you can afford the repair yourself, paying out-of-pocket rather than filing an insurance claim might protect your “clean record” and prevent rate hikes.
5. Shop Around Annually & Reassess at Renewal
Never assume your current insurer is still the best option — especially now:
- Request multiple quotes each year; insurers are adjusting risk models more frequently than in the past.
- Ask your agent to reassess the coverage limits on your policy. Over time, your home’s value, the cost to rebuild, or your personal assets may change.
- Review optional add-ons or riders you may no longer need.
- Try to time improvements or home upgrades before your renewal, so the insurer can incorporate them in the next pricing cycle.
Even a 2–5% reduction via a smarter quote or optimized policy can help offset the broader premium inflation.
Why These Steps Matter — And Why St. Louis Has Some Advantages (But Still Faces Pressures)
Broader Cost Drivers
- Inflation in construction costs: Labor, materials, and permits have all surged, making rebuilding after a loss more expensive.
- Increased claims frequency: More frequent weather events, aging infrastructure, and deferred maintenance push up claims.
- Reinsurance and capital costs: Insurers must purchase coverage themselves (reinsurance), and rising costs here get passed down.
- Underwriting discipline and risk segmentation: Insurers are more precise about ZIP codes, roof age, claims history, and specific vulnerabilities.
- Premium growth exceeds inflation: Over past years, insurance costs have often outpaced general inflation.
The Local Position: St. Louis / Missouri
- Because Missouri and Illinois are less vulnerable to massive coastal disasters, the St. Louis area is comparatively “in a good spot.” That means while premiums are rising, the volatility is somewhat lower than in extreme-risk markets.
- However, many homes in St. Louis are older, with legacy construction or deferred maintenance, which amplifies risk in insurance models.
- A surprising local trend: after recent severe storms, Missouri authorities estimated that in some northern St. Louis ZIP codes, up to 67% of homes might be uninsured. In other nearby areas, about 50% of properties were estimated to be uninsured.
- Statewide, an estimated 7% of Missourians don’t carry homeowners insurance (though other sources place the figure as high as 11%).
This lack of coverage in some neighborhoods underscores the financial risk local homeowners face — if a storm hits and you’re uninsured, you bear the full burden.
Bonus Tip: Use Local Data to Advocate During Renewal
Because insurers evaluate by ZIP code and neighborhood risk, you can sometimes use local metrics or data points to argue your case:
- Emphasize improvements you made (e.g. new roof, upgraded systems) before renewal so they’re factored in.
- If your home is newer or has newer systems compared to others in your zone, point that out in your negotiation.
- Check out tips from interview local insurance broker Brad Naeger.
