Missouri’s Earthquake Risk Grows, So Does Insurance Cost

This year has seen an uptick in earthquake activity in Missouri. Yes, primarily in the New Madrid region where the most devastating earthquake in the lower 48 took place in 1812.

The Mississippi river took a crazy twist that year.

Around the turn of the century, you could get earthquake insurance in Missouri (and that specific part of the state) pretty cheap. A little over 50 bucks a year would get you covered back then. In 2025 that same coverage will cost you ten times as much.

Yes, the cost of everything is up since 2000. But the average increase of health insurance over the same time span is only (ONLY!!?) three times as much. The average cost of a home in USA since 2000 has gone up 162% and the average cost of a car since 2000 is up 123%.

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The cost has gotten so high that many people who live in Southeast Missouri can’t afford to pay for it.  There’s a formula for how to calculate insurance rates that includes speculation of future costs to rebuild or replace. They quantify the likelihood of a large earthquake that would create regional damage. The companies also have to make sure that they are fluid enough in the future to have the funds on hand to pay out if/when the potential disaster occurs. Some agencies can’t keep up, so they get out of certain insurance markets.

Read more: Can the New Madrid Fault Really Trigger a 9.0 Quake?

Even with a slight increase in small quake activity the latest quake forecasts have the region at a 7 to 10 percent chance of the “big one” like 1812 within the next 50 years. For a quake at a 6.0 -that would do plenty of damage- the chance is 25 to 40 percent over the next 50 years.